7th Cir. Sides With Insurer in COVID-19 Coverage Actions

  • Opinion

CHICAGO — The 7th Circuit U.S. Court of Appeals has upheld dismissal of COVID-19 coverage actions filed by three Illinois businesses, affirming that they failed to allege “physical loss of or damage to” property, as required by their policies.

In a Dec. 9 opinion, the panel rejected plaintiffs’ assertion that loss of use constitutes direct physical loss, explaining the policies require tangible, physical damage to trigger coverage.

Sandy Point Dental, P.C., the Bend Hotel Development Co., and TJBC Inc. were required to close or dramatically scale back operations in response to a series of executive orders issued by Illinois Governor …


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