Chicago Daycare Sues Insurer for COVID-19 Losses, Says Virus Exclusion Void

CHICAGO — A Chicago daycare center has sued West Bend Mutual Insurance Co. for coverage of business interruption losses arising from government closure orders issued in response to the COVID-19 pandemic.

In a class action complaint removed to the U.S. District Court for the Northern District of Illinois, Green Beginnings LLC says the virus itself and the government orders caused it to sustain “physical loss of or damage” to its covered property, and that the policy’s virus exclusion does not apply.

In mid-March, Illinois Governor J.B. Pritzker ordered all non-essential businesses, including Green Beginnings, to close. The daycare filed a …