Article examines the Seventh Circuit Court of Appeals first decision regarding insurance claims stemming from COVID-related shutdowns. The court sought to address whether certain losses caused by the SARS-CoV-2 virus qualified as "direct physical loss or damage." The three businesses in the consolidated case sought to recoup their significant losses from pandemic-related shutdowns in 2020, but the district courts dismissed their complaints for failure to state a claim. The Seventh Circuit affirmed the district court decisions, agreeing with the insurance company that the SARS-CoV-2 virus was not something that resulted in "direct physical loss or damage," a key provision at issue in the dispute.

"COVID-Related Shutdowns Don't Constitute "Direct Physical Loss" Under Commercial Property Policies," Civil Litigation FLASHPOINTS, January 2022