In Bradley Hotel Corp. v. Aspen Specialty Ins. Co., No. 21-1173 (7th Cir. December 9, 2021), the Seventh Circuit found that the District Court did not err in granting defendant-insurance company’s motion to dismiss plaintiff-insured’s action, alleging that defendant wrongfully denied plaintiff insurance benefits for COVID-19-related losses arising out of customer cancellations of business services based on executive orders issued by Gov. Pritzker that suspended in-person dining and gatherings of 50 or more people. While policy provided coverage for “direct physical loss” of or damage to property, said coverage did not apply to instant claim, where plaintiff did not allege that COVID-19 virus or instant executive orders physically altered plaintiff’s business properties. Policy also contained loss of use exclusion that applied to plaintiff’s claims, where: (1) policy barred coverage for “loss or damage caused by or resulting from delay, loss of use or loss of market;” and (2) policy indicated that mere loss of use cannot be cause of plaintiff’s losses. Also, policy’s ordinance or law exclusion served to bar coverage, where: (1) instant loss was caused directly or indirectly by enforcement of any ordinance or law; and (2) enforcement of Governor’s executive orders qualified as enforcement of “law.”
Accord:
Cresent Plaza Hotel Owner, L.P. v. Zurich American Ins. Co., No. 21-1316 (December 9, 2021) N.D. Ill., E. Div. Affirmed
Mashallah, Inc. v. West Bend Mutual Ins. Co., No. 21-1507 (December 9, 2021) N.D. Ill., E. Div. Affirmed
Sandy Point Dental, P. C. v. The Cincinnati Insurance Co., No. 21-1186 et al. Cons. (December 9, 2021) N.D. Ill., E. Div.; S. D. Ill. Affirmed