Ill. Hotel Not Covered for COVID-19 Losses, Federal Judge Rules

CHICAGO — An Illinois federal judge has dismissed a hotel’s COVID-19 business interruption coverage action against The Cincinnati Insurance Co., ruling that government closure orders issued in response to the pandemic did not cause “direct physical loss or damage,” as required by the policy.

In a Jan. 27 order, Judge Elaine Bucklo further ruled that even if The Bend Hotel Development Company LLC had alleged the presence of COVID-19 on its premises, the virus does not cause “direct physical loss or damage” to property.

The Bend Hotel, located in East Moline, Ill., suffered substantial losses after Governor J.B. Pritzker …