Universities, Other Institutions Suing Insurers For Not Covering COVID-19 Losses

As the novel coronavirus pandemic spread across the country last year, Rockhurst University in Kansas City faced an unprecedented financial crisis.

With students suddenly being sent home and major school events canceled, the virus halted the major revenue stream that kept the university afloat.

After the university refunded more than $2 million in room and board expenses for last year’s spring semester, the school continued to suffer significant financial losses and added expenses related to the virus.

Yet school officials remained optimistic. Despite losses in the millions, they were hopeful that the university would recover some of what it lost because it had purchased an "all risks" insurance policy from FM Global that included specific coverage for losses due to "communicable diseases."

Now, more than a year later, the university is among several institutions and many large businesses that are battling their insurance companies in court to recover losses suffered during the pandemic.

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