Insurer Wants Out Of Hospital's Med Mal Suit Defense

By Angela Childers (September 20, 2021, 2:29 PM EDT) -- A surplus insurer said an Illinois hospital has no coverage under its excess policy to defend itself in a medical malpractice lawsuit alleging negligence during a birth because the hospital didn't notify the insurer until six years after the event.

Allied World Surplus Lines Insurance argued that its policy required nonprofit Anderson Hospital to notify it of any potentially insured event each quarter. Its failure to do so nullified any coverage the hospital would have had for defending itself in a suit filed by a mother who alleged the hospital's negligence led her to pass on herpes to her newborn, causing brain...

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