Daycare Says West Bend Mutual Obligated to Cover COVID-19 Losses

MILWAUKEE, Wis. — The owners of an Illinois daycare have filed a proposed class action against West Bend Mutual Insurance Co., asserting that business interruption losses arising from the COVID-19 pandemic and related civil authority orders are covered under the insurer’s all-risk policies.

In a Sept. 11 complaint filed in the U.S. District Court for the Eastern District of Wisconsin, Little Ones Preschool Inc. contends that coverage is triggered under the policies’ provisions for business income, civil authority and extra expense.

The presence of COVID-19 caused direct physical loss of or damage to covered properties by denying use of and …