Two Virginia hospitals were denied summary judgment on federal court claims that their insurance policy’s interruption by communicable disease endorsement provision was triggered by a Virginia COVID-19 shutdown order.

Danville Regional Medical Center and Clinch Valley Medical Center were parties to an insurance policy contract with defendant American Guarantee and Liability Insurance Company, according to the opinion. The ICD endorsement provision stated, in part, that coverage included a suspension of the insured’s business caused by “an authorized governmental agency enforcing any law or ordinance regulating communicable disease.”

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