Calif. Frozen Yogurt Shop Sues Insurer for COVID-19 Business Income Losses

LOS ANGELES — A Southern California frozen yogurt shop has sued The Hanover Insurance Co. for coverage of business interruption losses it incurred when government orders issued in response to the COVID-19 pandemic forced it to temporarily close.

In a July 22 complaint filed in the U.S. District Court for the Central District of California, JKR Enterprises LLC d/b/a Menchie’s Frozen Yogurt says the orders caused it to sustain “direct physical loss,” triggering coverage under its policy.

“As a result of this direct physical loss, Plaintiff has suffered loss of business income, has incurred extra expense to minimize the suspension …