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There Must be an Actual Change in the Appearance, Shape, Color, Or Other  Material Aspect Of The Property for Coverage to Apply  

Plaintiff MTDB Corporation d/b/a Striker Lanes (MTDB) sued seeking  declaratory judgment action against defendant, American Auto Insurance  Company (AAIC), seeking a declaration that AAIC owed it coverage for  alleged business losses and property damage due to the COVID-19  pandemic.  In MTDB Corporation D/B/A Striker Lanes v. American Auto Insurance  Company, 2022 IL App (1st) 210979-U, No. 1-21-0979, Court of Appeals of  Illinois, First District, Sixth Division (December 30, 2022) the  Illinois Court of Appeal followed the Illinois Supreme Court requiring  actual physical damage to property and refused coverage to the  plaintiff.  

BACKGROUND  

MTDB sought coverage under the property coverage and the civil authority  endorsement provisions of the policy.  The policy at issue provided property, general liability, and automobile  coverages for the policy period of August 19, 2019, to August 19,  20202. The relevant portions of the policy and Section A of the business  income coverage form states that:  "[w]e will pay for the actual loss  of business income you sustain due to the necessary suspension of your  operations during the period of restoration. The suspension must be  caused by direct physical loss of or damage to property at the premises  described in the Declarations, including personal property in the open  (or in a vehicle) within 100 feet, caused by or resulting from any  Covered Cause of Loss."