Specialty pharmaceutical companies that manufacture and distribute diagnostic medical imaging products rely on many components, including radioactive isotopes. Is a pharmaceutical company protected under its contingent business income loss coverage when the nuclear reactor that supplies a specific isotope is shut down for 15 months due to a leak? In one recent case, the answer was no.
Lantheus Medical Imaging, Inc., sued Zurich American Insurance Company challenging Zurich’s denial of coverage under a commercial property insurance policy purchased by Lantheus for business income loss from a 15-month shut down of the nuclear reactor at Chalk River Laboratories in Ontario, Canada, which supplied approximately 40% of the world’s medical isotopes. The company claimed that it incurred more than $70 million in losses as a result of the shutdown.
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Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
