Chicago Restaurants, Museums Sue Insurers for COVID-19 Business Interruption Losses

CHICAGO — A large group of Chicago restaurants and cultural institutions has sued various insurers, demanding coverage for business interruption losses arising from government closure orders issued in response to the COVID-19 pandemic, arguing that they have sustained “direct physical loss or damage” to their insured properties.

In a complaint removed to the Northern District of Illinois on Sept. 1, plaintiffs contend that “an actual, justiciable controversy exists between the parties concerning the construction of the terms ‘direct physical loss of or damage to’ covered property (or, in some Policies, ‘direct physical loss or damage to,’ or ‘direct physical loss …