Dist. Ct. did not err in dismissing plaintiffs-insureds’ action, seeking declaration that they were entitled to recover under commercial insurance policy issued by defendant-insurance company for lost income as result of “physical loss or damage” done to their customers’ properties, when customers’ businesses were either shut down or reduced in operation because of COVID-19-related government orders. While plaintiffs claimed that COVID-19 virus caused such physical loss or damages to customers’ properties, such that loss of income to plaintiffs arising out of said shutdown/reduction of customer’s businesses was covered by defendant’s policy, Ct. of Appeals held that instant temporary loss of use or restriction on use of customers’ properties did not constitute physical damage or loss. As such, plaintiff’s claims for lost income arising out of closure/restriction of customers’ properties were not covered by defendant’s insurance policy.
Federal 7th Circuit Court
Civil Court
Insurance