Choose Guidelines for Wisconsin Insurers in 17 COVID-19 BI Circumstances – Enterprise Insurance

A judge in Chicago this week ruled 17 separate business interruptions related to COVID-19 in favor of a Wisconsin insurer.

Judge Moshe Jacobius' rulings of the Cook County Circuit Court in Chicago included Tuesday's Station Two LLC, d / b / a Firehouse Grill et al. v. Society Insurance Inc. filed against Fond Du Lac, Society Insurance Inc., based in Wisconsin, by a restaurant group.

As with other rulings against policyholders, Judge Jacobius said the plaintiffs in this case failed to determine the direct physical harm required by coverage.

“The court found no policy ambiguity regarding 'direct physical loss or damage to insured property' that would trigger coverage. The plaintiffs are asking this court to determine that the SARS-CoV-2 particles cause "direct loss" or "damage to" property; but the court cannot be convinced ”, it says in the judgment.

"Since the existence of the particles is not visible to the naked eye and cannot be seen or felt, any alleged damage is not 'physical in nature," it said.

Judge Jacobius said he disagreed with the February 22 ruling of Judge Edmond E. Chang of the U.S. District Court in Chicago, who refused to dismiss a cross-district COVID-19 business interruption lawsuit filed against Society Insurance.

Judge Chang's opinion "had only a real question of material fact whether a reasonable jury could determine that physical loss of use of property can trigger news reporting," the verdict said.

"Additionally, most litigation in the United States District Court of Illinois, as well as other cases in the Cook County District Court, was not covered by the insurance policy because & # 39; plaintiffs (plaintiffs) did not claim any factors, physical alteration or structural "Deterioration of property" says the decision, citing a previous judgment and the insurer's motion to dismiss the proceedings.

Laura A. Foggan, attorney for Society Insurance, president of the Insurance / Reinsurance Group of Crowell & Moring LLP in Washington, said in a statement: “We are pleased that the Illinois court is correcting the terms of Society policies in each of these cases has applied. ”

The statement said: “While these times are undeniably challenging for many Society policyholders and all pandemic corporations, the present circumstances do not change the terms of the Society's insurance contracts, nor do they provide coverage for losses outside of these terms . "

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