CHICAGO -- In a sweeping lawsuit, prominent Chicago restaurant groups including Lettuce Entertain You and Gibsons are fighting their insurance carriers over denial of coverage for lost income related to COVID-19.
The suit, filed Thursday in Cook County Circuit Court, is one of hundreds businesses have filed against insurers over the last several months as the health crisis, and shutdowns mandated by the government, slashed revenues. It is notable for its breadth: There are 42 plaintiffs, mostly Chicago restaurants, and 18 insurers listed as defendants.
The suit alleges shutdown orders caused hundreds of millions of dollars in losses that should be covered by the policyholders' business interruption insurance. Normally such policies cover income losses when property is damaged from a fire or other physical events.
The plaintiffs, represented by law firm Jenner & Block, include a diverse roster of restaurants, from the chain Roti Mediterranean Grill to neighborhood businesses such as Wicker Park's Bangers & Lace and the South Loop mainstay Manny's Deli. The DuSable Museum of African American History and the Peggy Notebaert Nature Museum also are listed as plaintiffs in the suit.
The suit alleges the businesses had their claims denied even though they "incurred direct physical loss and damage" and have been "rendered physically nonfunctional" as a result of the mandated closures and restrictions.
The defendants include Schaumburg, Ill.-based Zurich American Insurance, Rock Island-based Illinois Casualty Co. and Employers Insurance Company of Wausau, an affiliate of Liberty Mutual.
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