Virus Exclusion Defeats Chicago Small Businesses’ COVID-19 Coverage Efforts

CHICAGO — An Illinois federal judge has dismissed a COVID-19 insurance action filed by two Chicago-area small business owners against West Bend Mutual Insurance Co., ruling that the policies’ virus exclusion bars coverage.

In a Feb. 22 order, Judge Charles P. Kocoras of the U.S. District Court for the Northern District of Illinois held that Mashallah Inc. and Ranalli’s Park Ridge LLC’s losses fall within the exclusion because they originate from the COVID-19 virus.

Mashallah owns and operates a jewelry store, while Ranalli operates “Holt’s,” an upscale bar and restaurant in Park Ridge, Ill. Both businesses filed claims with West …