Two universities based in the state of Missouri have filed a class action lawsuit against their shared insurer, arguing that the insurance company denied their business interruption claims for losses sustained during the COVID-19 pandemic.
Both Rockhurst University in Kansas City and Maryville University in St. Louis claimed in the lawsuit that insurer Factory Mutual Insurance refused to pay for their losses. The lawsuit also seeks to represent other universities across America whose claims have been denied by Factory Mutual.
With a student population of over 3,000, Rockhurst shut down its campus in mid-March, the lawsuit said. The complaint added that it has since refunded $2.2 million to students in room, board, and fees.
Maryville – with more than 10,000 students – also shut down in mid-March. According to the lawsuit, the university has similarly refunded over $2 million to students.
The universities claim in their lawsuit that Factory Mutual informed them that it would limit payments for pandemic-related claims to “communicable disease” provisions in their insurance policies.