A health care company should have to satisfy only one self-insured retention before it can receive millions in insurance coverage for a slew of claims asserted by long-term care residents who allege they contracted COVID-19 at nursing home facilities, the company told a Pennsylvania federal court.
Genesis HealthCare Inc. said in a motion for summary judgment Thursday that under the plain language of its professional liability policy with Berkshire Hathaway unit National Fire & Marine Insurance Co., it's required to pay only a single $3 million retention before the insurer's coverage obligations kick in.
The Pennsylvania-based owner and operator of nursing homes and senior living facilities argued that all claims asserted by residents who allege they contracted COVID-19 at Genesis facilities should count as a single "health care event" under the policy, triggering a single self-insured retention.
"Those claims constitute a single health care event because they arise from whether or not Genesis engaged in measures sufficient to protect its residents from contracting COVID-19," the health care company argued.
The health care company said its policy requires that all claims "arising from the same acts or omissions in furnishing professional services be treated as a single health care event," regardless of whether they took place at different Genesis-owned facilities or during different time periods.
Genesis said National Fire initially agreed with that coverage interpretation, but then abruptly changed course to avoid millions in liability.
Genesis is represented by Pamela D. Hans, Rhonda D. Orin, John P. Lacey Jr., Fiona Hogan and Jason E. Kosek of Anderson Kill.
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