When a water main was damaged by work performed by a telecommunications company, causing a pharmacy to flood and sustain damage, the circuit court did not err in granting summary judgment to the insurance company. The Illinois appellate court found that the policy’s exclusion of coverage for damages relating to water from under the surface of the ground applied to water that originated underground, even if the damage caused by that water occurred above ground.
In December 2015, Prekshot Professional Pharmacy was operating in leased space in Peoria, Illinois. Preckshot had a contract of insurance with its insurer, Pharmacists Mutual. AT&T and its subcontractor were performing directional boring behind Preckshot’s premises. The boring damaged a water service line near the Preckshot premises, causing a discharge of water that flooded the Preckshot pharmacy above the ground.
Preckshot subsequently filed a claim with Pharmacists Mutual pursuant to its insurance policy. Pharmacists dispatched an investigator to determine the precise cause of the damages. The inspector concluded that the water from the ruptured line flowed through under a concrete slab and came up through the ground to infiltrate the interior of the pharmacy. Pharmacists then denied Preckshot’s claim, stating that coverage was excluded by a provision in the policy which excluded perils caused by water below the surface of the ground. Continue reading ›