Ill. Federal Judge Allows Businesses’ COVID-19 Coverage Action to Proceed

CHICAGO — An Illinois federal judge has refused to dismiss a COVID-19 coverage action filed by a barbershop, barbering school, and hair salon against Continental Casualty Co., finding they sufficiently alleged “physical loss of or damage to” covered property.

In a June 1 order, Judge Charles P. Kocoras of the U.S. District Court for the Northern District of Illinois found plaintiffs sufficiently alleged that due to COVID-19 contamination and resulting government closure orders, their properties underwent a “distinct, demonstrable, physical alteration,” triggering coverage.

Plaintiffs are a barbershop, barbering school, and upscale hair salon that have similar policies with Continental. …