Franchisee 101: McDonald’s Cooks Up COVID-19 Insurance Coverage | Lewitt Hackman
An insurance claim filed by McDonald's and two of its franchisees (collectively, "McDonald's") raised a novel question in Illinois state court. The question was whether the costs of complying with a mandatory order related to the COVID-19 pandemic are personal injuries that trigger the insurance company's duty to defend claims. In the underground lawsuit, employees alleged that McDonald's opened its restaurants openly and negligently during the pandemic without adequate new health and safety practices. McDonald’s policy was that employees and managers could take off their masks and stand within six feet of each other, but no longer than 10 minutes. McDonald's face-covering and distancing policies contradicted the Illinois governor's executive order and CDC guidelines. Some McDonald's restaurants have not successfully enforced the policy, resulting in employees wearing their masks under their noses and mouths or not at all due to the “10 minut...