McDonald’s Loses Insurance Suit Over Employee Litigation Costs

McDonald’s Corp. lost its bid to get insurance coverage for an employee suit alleging poor working conditions in its restaurants.

Intact Financial Corp.'s insurance unit had no duty to pay the fast food chain’s defense costs since the employee didn’t seek damages because of an actual physical bodily injury, as required by the policy, the US District Court for the Northern District of Illinois ruled Wednesday.

The underlying Illinois state court suit against McDonald’s and several franchisees alleged that conditions in the restaurants were unsafe due to violent acts by customers and fellow workers. The claims were dismissed, and several ...