Lloyd’s, Federal Insurance to Pay $18 Million Over Clinic Firing

Insurance policies issued by Lloyd’s of London underwriters and Federal Insurance Co. cover an insured hospital system’s $18 million loss in arbitration to a neurosurgeon who alleged he was wrongfully fired, a federal court in Washington state ruled.

The insurance-coverage dispute between nonprofit medical network Providence Health and Services and the insurers arose after an arbitrator concluded that Providence and its affiliate Swedish Health Services were liable to Dr. David Newell.

Newell had made an internal report of age discrimination at Swedish, according to the court. While that investigation was pending, Newell was arrested for “sexual exploitation or patronizing a ...