Chicago Restaurant Owner Says COVID-19 Causes ‘Physical Loss or Damage’

CHICAGO — The owner of 11 Chicago-area Italian restaurants have sued its insurers for coverage of COVID-19-related business interruption losses, arguing that the pandemic and related government closure orders caused it to sustain “physical loss or damage” to its insured properties.

In a complaint removed to the U.S. District Court for the Northern District of Illinois on Sept. 18, Rosebud Restaurant Inc. contends that QBE North America and Regent Insurance Co. are obligated to pay its losses because Illinois courts have consistently held that the presence of a dangerous substance in a property constitutes “physical loss or damage.”

On March …