Plaintiff, a restaurant, sought declaratory judgment individually and on behalf of similarly situated individuals that business interruption due to the Covid-19 pandemic was a “covered cause of loss” under a business-owners policy issued by defendant State Farm. The trial court dismissed plaintiff’s complaint pursuant to section 2-615, including claims for breach of contract and bad faith. The appellate court affirmed, finding that the losses experienced by the plaintiff constituted an economic loss and not a physical loss, as was required by the language of the policy to trigger coverage. The appellate court further found that a virus exclusion clause within the policy provided additional grounds to find that the declaratory judgment was properly dismissed. (HYMAN and WALKER, concurring)
Illinois Appellate Court
Civil Court
Insurance Coverage