A video gaming terminal operator seeks COVID-19-related business interruption coverage in a suit against The Hartford Fire Insurance Co. and broker Hub International Limited.
According to the complaint filed in Madison County on Aug. 18, Highland-based Lucky Lincoln Gaming LLC says it has lost substantial revenue due to Gov. JB Pritzker's closure orders affecting bars, restaurants and other "non-essential" businesses, and was subsequently denied coverage based on a finding that it sustained no physical loss or property damage.
"But The Hartford's conclusion that the actual or alleged presence of a substance like COVID-19 does not result in property damage is contrary to the law in Illinois," the complaint states. "Illinois courts have consistently held that the presence of a dangerous substance in a property constitutes 'physical loss or damage."
Lucky Lincoln, which says it operates gaming oprations throughout the state including at Lacey's Place Slots and Video Gaming in Highland and Route 66 Kick Stand in Granite City, also claims that its policy with Hartford does not include an exclusion for loss caused by a virus.
"If the Hartfford had wanted to attempt to exclude pandemic-related losses under Plaintiff's policy - as many other insurers have wrongly done in other policies - it easily could have attempted to do so on the front-end with an express exclusion," the complaint states. "Instead, The Hartford waited until after it collected Plaintiff's premium, and after a pandemic and the resulting Closure Orders caused catastrophic business losses to Plaintiff, to try to limit its exposure on the back end through its erroneous assertion that the presence of the coronavirus is not 'physical loss' and therefore is not a covered cause of loss under its policy."
Represented by attorneys at Holland Law in St. Louis - Ann Callis, Eric Holland and R. Seth Crompton - Lucky Lincoln and its sole member Jeff Rehberger seek declaratory judgment for insurance coverage, indemnification of business losses, and damages for breach of contract and bad faith claims handling.
In the alternative, should it be determined there is no coverage under its policy, Lucky Lincoln seeks damages for breach of fiduciary duty by Hub for negligent failure to procure a business interruption policy.
Madison County Circuit Court case number 20-L-1180.