Calif. Footwear Chain Says COVID-19, Closure Orders Caused ‘Physical Loss or Damage’

SAN DIEGO — A California footwear retailer has sued Valley Forge Insurance Co., demanding coverage for losses it sustained when it was forced to temporarily close its 11 stores due to the COVID-19 pandemic and related state closure orders.

In a complaint removed to the U.S. District Court for the Southern District of New York on June 26, Daneli Shoe Company d/b/a Footwear Etc. contends that the orders were issued due to direct physical loss of or damage to property and prohibited access to its premises.

Valley Forge, however, denied Footwear Etc.’s claim on April 21, maintaining that plaintiff’s operations …