Midwest Reg'l Allergy Ctr., P.C. v. Cincinnati Ins. Co., No. 14-3026 (8th Cir. 2015)
Annotate this CaseIn 2011, a tornado struck and substantially damaged Midwest’s building and its contents. After the tornado, the medical practice was to relocate, which required substantial work. Until construction was complete, Midwest operated out of a temporary location, but was unable to operate at its normal capacity. Moving the repaired MRI machine to the new building required a crane; it was necessary to reinforce floors; replace exterior brick; and install pipe, specialized heating and air conditioning equipment, and copper shielding. The new location opened about a year after the tornado. Cincinnati Insurance paid Midwest the policy limit of $2,414,161.26 for the building; the policy limit of $388,000 for business personal property; and $828,081.75 for business income interruption and extra expenses. . Midwest requested “Extra Expense” reimbursement for the costs to repair and relocate the MRI machine and to replace the other specialty equipment necessary for normal operations. Cincinnati denied payment, contending the expenditures were covered under the Building or Business Personal Property provisions, for which it had paid the policy limits. The district court found the claimed expenses were recoverable under the Extra Expense provision. The Eighth Circuit affirmed, noting that the language of the Policy does not specifically exclude coverage under the Extra Expense provision if the expenses happen to fall under another coverage in the Policy.
Court Description: Gritzner, Author, with Wollman and Gruender, Circuit Judges] Civil case - Insurance. Expenses insured incurred in repairing medical machinery damaged in a covered loss, replacing specialty equipment and installing an MRI machine were all covered under the extra expenses provision of the policy and the district court did not err in finding coverage.
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