CFIT Holding Corp. v. Twin City Insurance Co.
CFIT Holding Corp. v. Twin City Insurance Co. (U.S. District Court, N.D. Illinois, July 8, 2021): An Illinois federal district court found that an insurance company was not liable for financial losses caused by the COVID-19 pandemic. The plaintiff operates 22 gyms in Illinois and Indiana and claimed that the pandemic closure orders, which resulted in the loss of use and contamination of its properties, should be compensated under their insurance policy. The court disagreed. Compensation would require direct physical loss or damages to the property, resulting from a change in the physical condition of the location. Even with evidence of physical loss, the insurance company was not liable because the contract contained a virus exclusion provision. Read the decision here.