Insurer Asks Court to Immediately Appeal COVID-19 Ruling

On Tuesday, Society Insurance Co. asked an Illinois federal judge for approval to immediately appeal his February refusal to dismiss policyholders’ claims for COVID-19 business interruption losses. As part of their argument, they claim the question of losing the use of one’s property constitutes a “direct physical loss,” and is a pressing legal question that requires quick appellate review.

In three bellwether cases over the insurer’s widespread denial of COVID-19-related coverage, U.S. District Judge Edmond E. Chang last month allowed a group of restaurants, bars and theaters to pursue claims that Society wrongfully denied them coverage. However, the insurer believe Chang’s decision on “direct physical loss” is a minority position, increasing the likelihood it won’t stand on appeal.

The policyholders are represented by Tim Burns of Burns Bowen Bair LLP, as well as attorneys from DiCello Levitt Gutzler LLC, The Lanier Law Firm PC, McGuireWoods, Clifford Law Offices, and others.