STORY FROM: COVID-19 Litigation Report
Insurer Says COVID-19 is not ‘Pollution Condition’ in Bid to Dismiss Resort’s Lawsuit
July 8, 2020
PHOENIX — Illinois Union Insurance Co. has moved to dismiss a Lake Havasu, Ariz., resort’s lawsuit demanding coverage for $2 million in losses it allegedly sustained when it closed due to the COVID-19 pandemic and related civil authority orders.
In a July 2 motion to dismiss, the insurer contends that London Bridge Resort LLC is not entitled to coverage under the policy’s provision for “first-party claims” arising from a “pollution condition” because COVID-19 does not constitute a “pollution condition.”
“The term ‘pollution condition,’ as defined by the policy, is limited to traditional environmental pollution, and does not include a communicable ...
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