Erie Insurance Faces COVID-19 Coverage Class Action Filed by Ill. Restaurant

CHICAGO — An Illinois restaurant and bar has filed a proposed class action against its insurer, alleging that COVID-19 government closure orders caused it to sustain physical loss or damage to its insured property, triggering coverage under its policy.

In a May 14 complaint filed in the U.S. District Court for the Northern District of Illinois, Menns Inc. d/b/a The Tavern on Clark argues that the policy, issued by Erie Insurance Exchange and Erie Indemnity Co., does not contain any reference to pandemic or exclusions for pandemics.

Plaintiff was forced to close its eatery after Illinois lawmakers issued stay-at-home orders …