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Carilion Clinic files lawsuit claiming it’s owed more than $150 million in COVID-19 losses

Carilion filed the lawsuit against its own insurance provider

Since getting its first shipment of the COVID-19 vaccine three weeks ago, nearly 6,000 of Carilion’s 13,000 employees have gotten the first dose.
Since getting its first shipment of the COVID-19 vaccine three weeks ago, nearly 6,000 of Carilion’s 13,000 employees have gotten the first dose. (Copyright 2020 by WSLS 10 - All rights reserved.)

ROANOKE, Va. – A lawsuit filed by Carilion Clinic claims the hospital has lost more than $150 million because of the COVID-19 pandemic.

Carilion is suing its insurance provider, American Guarantee and Liability Insurance Company, because it claims those losses were not covered.

Carilion Claims that, “AGLIC has refused to provide coverage or even properly investigate Carilion Clinic’s losses,” according to the lawsuit.

Carilion is seeking damages for breach of contract against AGLIC for its failure to honor its policy obligations and seeing a judgment declaring the scope of AGLIC’s obligation to pay their losses under the policy.

“This direct physical loss of or damage to Carilion Clinic’s property required Carilion Clinic to close specific properties, sharply limit routine patient care at others, incur extra expense, and undertake costly efforts to protect and preserve property from further damage or loss. Even after resuming elective medical procedures and reopening properties such as the Carilion Wellness Centers, the many remaining restrictions continued to limit operations and require extensive ongoing remediation, all resulting in losses above $150 million,” according to the lawsuit.

The policy that Carilion took out with AGLIC has a $1.3 billion limit, which is why Carilion believes the entire policy limit is potentially available to cover its losses.

See the full lawsuit below:


About the Author:

Jeff Williamson arrived at WSLS 10 in March 2016.