Los Angeles Lakers Loses Federal Court Battle for COVID-19 Coverage

LOS ANGELES — A California federal judge has dismissed a COVID-19 coverage action filed by the Los Angeles Lakers professional basketball team against Federal Insurance Co., finding it did not sustain “direct physical loss or damage to the property,” as required by the policy.

On Aug. 12, Senior Judge Terry Hatter Jr. of the U.S. District Court for the Central District of California rejected the team’s argument that the presence of the virus at its stadium and surrounding transportation stations physically altered the property and damaged the buildings and personal property.

Federal issued the Lakers an all-risk commercial property …