Dist. Ct. did not err in granting defendant-insurance company’s motion to dismiss plaintiff-insured’s action seeking declaration that defendant’s insurance policy covered $85 million in losses that plaintiff incurred when paying COVID-19-related costs associated with cleaning and sanitizing its medical facilities during pandemic and adapting said facilities to provide testing and screening for COVID-19. Dist. Ct. could properly find that COVID-19 did not cause physical damage or loss to plaintiff’s facilities so as to have said losses come within general coverage provisions of instant all-risk policy. Moreover, said losses were excluded by policy’s contamination exclusion. Also, Dist. Ct. could properly find that certain losses were covered under separate, additional coverage provision that had maximum $1 million benefit for losses stemming from plaintiff’s communicable disease response.
Federal 7th Circuit Court
Civil Court
Insurance