Chicago Jewelry Business Loses Battle for COVID-19 Coverage in 7th Cir.

  • Opinion

CHICAGO — A Chicago jewelry business cannot recoup COVID-19-related economic losses from its insurer because it did not sustain “direct physical loss of or physical damage to” its property, as required by the policy, the 7th Circuit U.S. Court of Appeals has affirmed.

On June 3, the appellate panel explained that “direct physical loss” means tangible, physical alteration to property, not merely loss of use.

ABC Diamonds suspended in-person operations in March 2020 after the Governor of Illinois ordered statewide closures in response to the COVID-19 pandemic. ABC filed a claim for lost income and extra expenses with its …


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