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Insurance Law
Capacity limits on businesses can be a direct physical loss covered by insurance, judge rules in bellwether cases
 
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A federal judge in Chicago has ruled that pandemic-related business closings and capacity limits can qualify as a “direct physical loss” to property that is covered by business interruption policies.
U.S. District Judge Edmond Chang of the Northern District of Illinois ruled in three bellwether cases in multidistrict litigation against Society Insurance. Chang rejected a bid to dismiss the cases, Law.com reports.
In a Feb. 22 opinion, Chang said a reasonable jury could find that capacity limits prevent the restaurants and other hospitality businesses from using their physical space, qualifying as a direct physical loss. ....

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