STORY FROM: COVID-19 Litigation Report

Midwest Restaurant Owners Not Entitled to COVID-19 Coverage, Insurer Asserts

CHICAGO — An insurer has sued a group of Denny’s and Ruby Tuesday franchise owners, contending that it is not obligated to cover their business interruption losses arising from public health orders issued in response to the COVID-19 pandemic.

In a July 29 complaint filed in the U.S. District Court for the Northern District of Illinois, State Auto Property and Casualty Insurance Co. contends that the orders, issued in Illinois, Indiana and Wisconsin, “were not prompted by loss or damage at any insured premises,” as required by its policies.

Rather, the public health orders were issued in an attempt ...

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