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McDonald’s Survives Insurer’s Bid to Toss Suit Over Virus Safety

Feb. 23, 2021, 4:24 PM

McDonald’s Corp. kept alive its bid to tap its insurer for defense costs in employees’ lawsuits over allegedly lackluster Covid-19 safety measures, after a federal judge found insurance payouts might be available.

The case raises a novel question of whether the company and its franchisees’ costs in complying with a Covid-related injunction amount to bodily injury damages covered by their insurance policies, Judge Charles Kocoras, of the U.S. District Court for the Northern District of Illinois, wrote in a Monday ruling.

The fast-food giant and two of its Illinois-based franchisees sued Austin Mutual Insurance Co. in August 2020 after being...

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