7th Circle Rejects Limo Company’s offer to revive COVID suit

By Celeste Bott (June 7, 2022, 6:45 p.m. EDT) — The Seventh Circuit continued its recent trend of siding with insurers in COVID-19 coverage disputes when it upheld the dismissal of such a lawsuit filed by a Chicago-based limo company against Cincinnati Insurance, agreeing that the virus did not physically alter company ownership.

In those earlier decisions on claims brought against insurers by a movie theater chain and a dental practice, the appeals court ruled that under Illinois law there must be a physical alteration of the property to demonstrate “direct physical loss” and that the mere presence of the COVID-19 virus does not constitute that kind of physical harm. On Monday,…

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