Iowa Pubs Lose Bid for Covid-Related Insurance Payouts

The owners of three Iowa pubs failed to win insurance payouts for pandemic-related business losses, after a federal judge found a lack of alleged physical property loss or damage that would trigger coverage.

Whiskey River on Vintage and its sister pubs’ insurance policies don’t cover damages from a virus, Judge John A. Jarvey said Monday. This virus exclusion lets Illinois Casualty Co. off the hook even if the pubs could show that Covid-19 or statewide shutdown orders actually altered their property, he said.

“The Virus Exclusion unambiguously states it will not pay for loss or damage that is directly or ...