Dist. Ct. did not err in granting defendant-insurance company’s motion to dismiss plaintiff’s lawsuit, alleging that defendant wrongfully denied plaintiff’s application for insurance benefits based on COVID-related losses arising out of closure of certain facilities and imposition of restrictions on dining. While plaintiff insisted that its costs and expenses were covered as “direct physical losses or damage” to its business property, Dist. Ct. could properly find that said claim was not covered, since plaintiff failed to allege that there was any physical alteration caused by COVID-19 virus or orders limiting use of plaintiff’s business property. Also, dismissal was warranted under policy’s microorganism exclusion, where instant COVID-19 virus qualified as “microorganism” for purposes of applying instant exclusion.
Federal 7th Circuit Court
Civil Court
Insurance