Iowa Taverns Not Covered for COVID-19 Business Losses, Federal Judge Rules

DES MOINES, Iowa — A group of Iowa pubs are not entitled to coverage from Illinois Casualty Co. for COVID-19-related losses because they failed to allege “direct physical loss or damage” to insured property, as required by their policy, a federal judge has ruled.

In a Nov. 30 order, Judge John A. Jarvey of the U.S. District Court for the Southern District of Iowa held that the phrase “direct physical loss of or damage to property” requires a physical invasion, and loss of use is insufficient to trigger coverage without physical damage to the insured properties.

Founders on Main, …