Insurer Prevails in Ill. Restaurant’s COVID-19 Coverage Action



DOCUMENTS
  • Order


CHICAGO — An Illinois federal judge has awarded West American Insurance Co. judgment on the pleadings in a restaurant owner’s COVID-19 coverage action, ruling that government orders limiting its operations did not “direct physical loss of or physical damage” to covered property.

In a July 8 order, Judge Gary Feinerman of the U.S. District Court for the Northern District of Illinois explained that “direct physical loss” requires some sort of change in the physical condition or location of the covered property, not a mere loss of use of that property.

Melcorp Inc. operates the Great Steak & Potato Company …






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