Bowling Alley Not Covered for COVID-19 Losses, Ill. Appeals Court Affirms

CHICAGO — An Illinois bowling alley cannot recoup COVID-19-related losses from American Auto Insurance Co. because there was no “direct physical loss or damage” to covered property, as required by the policy, an Illinois appellate court has affirmed.

In a Dec. 30 order, the Illinois Court of Appeal, 1st District, agreed with the lower court that MTDB Corp. d/b/a Striker Lanes failed to allege that the COVID-19 virus alters property in appearance, shape, color, or other material dimension. Rather, it only alleged that the virus’ presence was “likely.”

The appellate panel also rejected MTDB’s alternate argument that the COVID-19 virus …