Society Insurance Prevails in Ill. COVID-19 Coverage Action for Lack of ‘Physical Loss of or Damage’

  • Opinion

CHICAGO — An Illinois appellate court has upheld a ruling in favor of Society Insurance in a COVID-19 coverage action filed by the owner of several Chicago restaurants and taverns, affirming that the policies do not cover losses arising from government pandemic-related mitigation orders.

In an opinion issued on Sept. 16, the Illinois Court of Appeal, 1st District, agreed with the Cook County (Ill.) Circuit Court that the orders did not cause “direct physical loss of or damage to” insured property, as required by the policy.

Lodge Management Corp., which owns and operates several Chicago-area restaurants, sustained losses in the …


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