Chicago Cafe Sues Acuity Insurance for Coverage of COVID-19 Losses

CHICAGO — A Chicago-area breakfast restaurant has sued Acuity Insurance for coverage of business interruption losses arising from the COVID-19 pandemic and related government shutdown orders.

In a Sept. 21 complaint filed in the U.S. District Court for the Northern District of Illinois, Morningside Café Inc. contends that the virus caused it to sustain “physical loss or damage” to its insured property, triggering coverage under its policy.

“Illinois courts have consistently held that the presence of a dangerous substance in a property constitutes ‘physical loss or damage,’” plaintiff contends.

On March 15, in an effort to stem the spread …