Society Insurance Says Eateries, Movie Theatres, Sustained no ‘Physical’ Loss or Damage

CHICAGO — Society Insurance has moved an Illinois federal court to dismiss a COVID-19 coverage action filed by a group of movie theatre and restaurant owners, arguing that their business interruption claims did not arise from “physical” loss or damage of property.

In a July 13 motion filed in the U.S. District Court for the Northern District of Illinois, Society contends that neither the government closure orders nor the virus itself did “not cause a tangible change” to the insured properties.

Illinois Governor Pritzker on March 15 ordered all restaurants, bars, and movie theaters to close in an effort to …