Case Dismissed Because Physical Loss Allegations Conclusory

The United States District Court for the Northern District of Illinois, in an opinion written by Judge Alonso, applying Illinois law, dismissed an insured’s claim for coverage for business income losses resulting from the COVID-19 pandemic. The insured, Jump Buffalo Grove, LLC, argued that the virus caused physical loss or damage to their property, a contention the District Court found to be “conclusory.” Because the insured failed to allege any actual physical damage to the property, or that any of the property required repair, replacement, rebuilding, or relocation, the District Court granted the insurer’s motion to dismiss. Jump Buffalo Grove LLC v. Cincinnati Casualty Co., No. 21-cv-2015, 2021 WL 5396696 (N.D. Ill. Nov. 18, 2021).