Chicago Banquet Hall Says COVID-19 Government Orders Caused ‘Direct Physical Loss’

CHICAGO — A Chicago banquet hall has sued Society Insurance in federal court in an effort to recoup business losses it sustained after it was forced to close down in compliance with COVID-19-related government stay-at-home orders.

In a July 30 complaint filed in the U.S. District Court for the Northern District of Illinois, Royalty Banquet Hall Inc. d/b/a Royalty West Banquets says the orders caused it to sustain “direct physical loss,” triggering coverage under its policy.

“As a result of this direct physical loss, Plaintiff has suffered loss of business income, has incurred extra expense to minimize the suspension of …