Virus Exclusion Applies to Chicago Businesses’ COVID-19 Losses, Judge Rules

CHICAGO — An Illinois federal judge has dismissed a COVID-19 coverage action filed by the owners of a bakery and a salon against Westfield Insurance Co., ruling that the policy’s virus exclusion applies to losses caused by government orders limiting plaintiffs’ operations.

In a May 7 order, Judge Matthew F. Kennelly of the U.S. District Court for the Northern District of Illinois noted that while the 7th Circuit has not addressed whether virus exclusions bar coverage for COVID-19-related loss of business income, several judges in the district have concluded in similar cases that it does.

M&E Bakery Holdings LLC d/b/a …