HOUSTON - The 14th Court of Appeals today affirmed a ruling granting two insurance companies summary judgment in a lawsuit brought by Baylor College of Medicine over losses caused by the COVID-19 pandemic.
According to the opinion, Baylor and XL Insurance America and Ace American Insurance entered into all-risks insurance policies that covered “direct physical loss of or damage to property.”
The policies included a Pollution and Contamination Exclusion.
In its suit against the insurers, Baylor alleges that it suffered direct physical loss of or damage to property due to the COVID-19 pandemic.
When Baylor submitted a claim for business interruption caused by the pandemic, the insurers denied the claim, which led to the lawsuit.
The opinion states that the insurance companies filed a motion for summary judgment, which the trial court granted, ruling that “any loss or damage caused by… by COVID-19 falls within the scope of the [Exclusion].”
The 14th Court found that the Exclusion identifies “virus” as a type of pollutant or contaminant for which there is no coverage.
“The trial court did not err by rendering a summary judgment for the appellees based on the Exclusion,” the opinion states. “Having overruled Baylor’s issue necessary to the disposition of the appeal, we affirm the trial court’s judgment.”
Appeals case No. 14-22-00145-CV