FM Global Beats Hospitals’ $85 Million Covid Insurance Appeal

An FM Global insurance unit beat a Wisconsin health-care system’s appeal over $85 million in costs incurred during the Covid-19 pandemic after the Seventh Circuit said the hospitals’ losses aren’t covered by its $2 billion insurance policy.

Froedtert Health failed to show that the money it spent to maintain operations in the early days of the pandemic resulted from physical losses, as required by the all-risk policy it purchased from Factory Mutual Insurance Co., the US Court of Appeals for the Seventh Circuit said Friday.

The court upheld a ruling from the US District Court for the Eastern District of ...