Chicago Bakery, Salon Owners Say COVID-19 Virus Causes Physical Property Damage

CHICAGO — The owners of a Chicago bakery and hair salon have sued Westfield National Insurance Co. 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 an Oct. 1 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.

Plaintiffs M&E Bakery Holdings LLC d/b/a Bittersweet and Blowtique LLC were forced …