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Johnson & Wales University Sues Its Insurer For Not Covering Pandemic-Related Losses

Johnson & Wales University in Rhode Island is suing its insurer, American Guarantee & Liability Company, for breach of contract by refusing to cover pandemic-related economic losses, reports The Providence Journal.

Johnson & Wales UniversityJohnson & Wales UniversitySaying it's insured under an "all-risk" policy, the university is arguing that American Guarantee should have known that it could be responsible for covering losses caused be viruses and pandemics, but that it hadn’t taken steps to exclude such coverage from the policy.

As a result, the university is asking that the company cover its financial losses that total "many millions of dollars” due to a decrease in tuition, housing and dining revenue and an increase health and safety measures costs.

According to the Providence Journal, a spokesperson for the insurance company did not return the paper's requests for comment.

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