Real Estate Developer Loses Battle for COVID-19 Coverage in Ill. Federal Court

  • Order

EAST ST. LOUIS, Ill. — An Illinois federal judge has dismissed a COVID-19 coverage action filed by a real estate development company against West Bend Mutual Insurance Co., finding there was no “direct physical loss of or damage to” insured property.

In a Dec. 14 order, Judge Staci M. Yandle of the U.S. District Court for the Southern District of Illinois followed 7th Circuit precedent in ruling that coverage is not triggered without any physical alteration to an insured premises.

River Hills Development LLC sued West Bend after the insurer denied its claim for economic losses stemming from the COVID-19 …


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