Louisiana Hospital Owners Sue Insurer Over Gustav Damage

Owners of the River West Medical Center in Plaquemine, La., have filed suit against their insurer in Baton Rouge for $58.5 million. The lawsuit filed Aug. 27 alleges that unpaid hurricane claims resulted in closure of the facility in May.

River West had trouble paying its employees after high winds from Hurricane Gustav damaged the center in September 2008.

River West said in its civil suit that the medical center would not have closed if American Guarantee and Liability Insurance Co. had honored $5.8 million in hurricane damage claims.

American Guarantee is a subsidiary of Zurich American Insurance Co.

Officials at Zurich American’s corporate office in Schaumburg, Ill., declined to discuss the dispute.

Information from: The Advocate, http://www.2theadvocate.com