Loews Unit Beats Out Diagnostic Lab in Covid-19 Testing Row

A Loews Corp. insurance unit is off the hook for a diagnostic lab’s expenses in litigation alleging it falsely informed individuals that they had used defective Covid-19 test kits.

Several exclusions in Continental Casualty Co.'s policy barred coverage for the suit against Lehigh Valley Toxicology LLC, the US District Court for the Eastern District of Pennsylvania ruled Wednesday.

The diagnostic lab contracted with Chester County, Pa., to process Covid-19 tests during the pandemic. In a deposition in related litigation, the lab’s managing partner admitted it hadn’t followed the manufacturer’s test kit instructions and that an internal investigation revealed false positives ...