Ill. Federal Judge Finds for Insurer in COVID-19 Coverage Brawl

CHICAGO — A gambling-themed candy and toy distributor, its landlord, and a travel arrangement company have lost their bid for COVID-19 coverage in Illinois federal court because they did not sustain “direct physical loss of or damage to covered property,” as required by Valley Forge Insurance Co.

In a Sept. 30 order, Judge Franklin Valderrama of the U.S. District Court for the Eastern District of Illinois ruled that JDL Inc., LV Candy LLC, and World Power Corp. failed to allege their insured properties, or surrounding properties, were physically altered or suffered “tangible or concrete” losses.

JDL owns Vegas Image, a …