Calif. Hotel Owners Sue Hartford for Coverage of COVID-19 Losses

LOS ANGELES — The owners of eight California hotels have sued Hartford Fire Insurance Co. for coverage of losses they sustained when the state governor issued stay-at-home orders in an attempt to prevent the spread of the COVID-19 virus.

In a complaint removed to the U.S. District Court for the Central District of California on July 16, the hotel owners contend that orders and the virus itself “have had a devastating effect on the properties’ businesses” because they rely upon materials and customers from other areas.

Plaintiffs say their net incomes have decreased by at least 70 percent since …