Plaintiff Hospital Service District No. 1 of Terrebonne Parish (Terrebonne Normal Medical Middle, or TGMC) filed go well with on Wednesday in opposition to Hartford Fireplace Insurance coverage Firm over allegations that the defendant wrongfully denied the plaintiff’s insurance coverage claims.
The defendant offered an insurance coverage coverage to the plaintiff from April 1, 2019, to April 1, 2020, which included an endorsement that supplied protection for Communicable Illness Contamination. The protection for communicable illness contamination particularly applies when “a governmental well being authority having jurisdiction over the ‘Insured Premises’ has issued an order concerning an outbreak of a particular communicable illness at an ‘Insured Premises.’” The coverage covers the clean-up, removing, restoration, and alternative of contaminated Lined Property.
The governmental well being authority that has jurisdiction over the plaintiff is the Louisiana Division of Well being, the criticism mentioned. On March 18, 2020, the division issued an order requiring the plaintiff to cease all non-emergency medical procedures because of COVID-19 outbreaks “at Louisiana hospitals, together with Terrebonne Normal Medical Middle [the plaintiff].”
After receiving the order from the Louisiana Division of Well being, the plaintiff filed a declare with the defendant for “coated enterprise interruption and contamination remediation losses.” The defendant denied the declare, citing that the order by the Louisiana Division of Well being was not made in response to an outbreak on the plaintiff’s facility, and that the order didn’t require particular cleanup measures. The plaintiff reductions this declare denial reasoning by the defendant as wholly incorrect.
The criticism cites breach of contract and breach of sure provisions of Title 22 as a result of defendant’s failure to pay the plaintiff’s insurance coverage declare. The plaintiff is looking for favorable judgment on every rely, litigation charges, pre- and post-judgment curiosity, bad-faith penalties, every other generable and equitable reduction to which TGHS could also be entitled.
The plaintiff is represented by Flanagan Companions LLP.