Insurer disputes clinic's claim for $150 million in COVID-19-related losses

by Robin Lasky, Contributing Reporter | June 01, 2021

If that’s the case, Zurich may be seen to have induced the effects of Murphy’s Law, as it is currently facing an array of high-value lawsuits as a result.

In March, Corelle Brands LLC, a kitchenware distributor, filed a lawsuit revolving around the same issues, including arguing that the June 2019 Virus Deletion Endorsement was explicitly for the purpose of removing viruses from the Zurich policy’s list of excluded contamination sources.

In March, Steinway Musical Instruments Inc. filed another similar lawsuit against Zurich, again, arguing that the Virus Deletion Endorsement explicitly removed viruses from applicable coverage exclusions.

A lawsuit was also filed recently by Lindenwood Female College of Saint Charles in Missouri against Zurich American, which is reported to be currently also facing hundreds of millions of dollars worth of proposed class actions by other colleges arising from the same contractual dispute.

“Zurich specifically removed 'virus' from the contamination exclusion through a 'virus deletion endorsement' when it issued Lindenwood the Zurich Edge policy, which promised policyholders broad and flexible coverage,” said Lindenwood College in a statement.

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