Event Production Co. Sues Insurer for COVID-19 Business Interruption Losses

AUSTIN, Texas — An event production design firm has sued Cincinnati Insurance Company Inc., demanding nearly $600,000 in coverage for business interruption losses and expenses arising from the COVID-19 pandemic and related government closure orders.

In a complaint removed to the U.S. District Court for the Western District of Texas on Aug. 17, Ilios Production Design LLC contends that its policy does not contain a virus exclusion, and that the closure orders “resulted in an actual loss of access, loss of use, or loss of functionality, impairing the function and value of the insured property and/or premises.”

On March …