Rare Win: Baylor College Awarded $12M for COVID BI Losses

They’ve been cropping up since 2020: COVID business interruption claims. Forced shutdowns due to a rising pandemic gave way to organizations looking for compensation for monies lost. But, as we all know, business interruption coverage will only trigger if a physical loss has occurred.

Typically, anyway. In a turn of events, Baylor College has secured BI coverage for its COVID-19 claims.

The college had $100 million all-risk policies with three insurers: XL Insurance America, ACE American Insurance Co., and Lloyd’s of London.

When mandatory shutdowns shuttered Baylor’s doors, it alleged more than $69 million in COVID-related business interruption damages. It filed suit with all three insurers. All three denied.

Baylor filed suit. In 2021, a Texas state court granted summary judgment in favor of XL and ACE, ‘finding that the insurers owe no coverage because their policies excluded coverage of virus-related losses. Baylor has appealed the ruling,’ according to reports.