STORY FROM: COVID-19 Litigation Report

Iowa Taverns Say COVID-19 Civil Authority Orders Led to Insured ‘Property Damage’

DES MOINES, Iowa — Three Iowa restaurants have sued Illinois Casualty Co., asserting that business interruption losses arising from COVID-19 civil authority orders caused them to sustain “direct physical loss” to their insured properties, triggering coverage under their policies.

In a complaint removed to the U.S. District Court for the District of Iowa on June 11, Founders on Main, Inc., Whiskey on Main, Inc. and Whiskey River on Vintage Inc. further maintain that the policy’s exclusion for “loss or damage caused by or resulting from any virus” does not apply.

On March 17, Iowa Governor Kim Reynolds issued a governmental ...

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