Society Insurance Prevails in Ill. COVID-19 Business Interruption Coverage Actions

CHICAGO — An Illinois state judge has ruled in favor of Society Insurance Co. in several actions filed by small businesses seeking coverage for COVID-19 business interruption losses, ruling that they did not sustain direct physical loss of or damage to their properties.

In 17 rulings issued Aug. 24, Judge Moshe Jacobius of the Cook County (Ill.) Chancery Division explained the actual or suspected presence of SARS-CoV-2 particles do not cause tangible loss, and reduction in economic value is not a “physical” loss.

The policyholders, which include various Illinois restaurants and bars, were forced to suspend or limit operations …