Chicago Eateries Sue Society Insurance for Coverage of COVID-19 Business Losses

CHICAGO — The owners of eight Chicago restaurant and bars have sued Society Insurance for coverage of losses they suffered when they were forced to close or limit operations in compliance with civil authority orders issued in response to the COVID-19 pandemic.

In a Sept. 17 class action complaint filed in the U.S. District Court for the Northern District of Illinois, plaintiffs contend that the policy’s virus exclusion does not bar coverage because their losses arise from the government closure orders, rather than COVID-19 itself.

“Here, the closure orders caused both property loss and property damage by directly, physically impairing …