Chicago Hotel Owner Accuses Zurich Of Bad Faith In Civil Unrest Damage Suit

The owner of a Chicago hotel has filed a lawsuit against Zurich American Insurance Company, accusing the insurer of wrongful and bad faith denial of insurance coverage.

The lawsuit, filed in the Circuit Court of Cook County by operator ECD-Great-Street DE, claimed that Zurich denied its claims related to the physical damage and extended closure of the Wit hotel resulting from the events of civil unrest that occurred in Chicago on May 30, 2020.

As a result of the damage, the Wit hotel – along with its in-house bar ROOF and restaurant State & Lake – were forced to shut down for the entire summer and early fall.

Both periods, the operator claimed, were peak seasons for business. The hotel later reopened in October.

The lawsuit also cited Illinois Governor J.B. Pritzker’s statement on June 08, 2020 that ‘insurance companies must do everything in their power and are obligated to give their customers the funds they need to rebuild and get back on their feet as soon as possible.’