Calif. Daycare Says Insurer Breached Policies by Denying COVID-19 Coverage

LOS ANGELES — A California daycare has filed a proposed class action against Great American Insurance Co. in an effort to recoup business interruption losses it sustained when state lawmakers forced it to temporarily close during the COVID-19 pandemic.

In a June 26 complaint filed in the U.S. District Court for the Central District of California, Flower Sisters LLC d/b/a KidsPark contends that its property has suffered direct physical loss or damage, triggering coverage under the policy.

“Defendant agreed to pay ‘for direct physical loss of or damage to covered property caused by or resulting from a covered cause of …