Facts

Vision Service Plan (VSP) is the parent of several companies that were harmed by the coronavirus pandemic. VSP had an insurance policy with Illinois Union Insurance Company (Illinois Union) and submitted a claim. Under that policy, Illinois Union agreed to pay for loss resulting from claims and first-party claims "arising out of...a 'pollution condition' on, at, under or migrating from a 'covered location..." Illinois Union denied the claim because it determined a viral pandemic was not a "pollution condition." After Illinois Union denied the claim, VSP brought this action.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant breached its obligations under the policy and denied coverage in bad faith. Plaintiff argued that defendant wrongly denied coverage for losses arising out of the COVID-19 pandemic because the virus created an insured "pollution condition."

DEFENDANT'S CONTENTIONS: Defendant denied all contentions.

Result

The court granted defendant's motion to dismiss the complaint without leave to amend.

Other Information

The case is currently on appeal.