Trade Show Exhibit Co.’s COVID-19 Coverage Action Dismissed Without Prejudice

SAN DIEGO — A California federal judge has dismissed without prejudice a trade show exhibit company’s COVID-19 coverage action against Sentinel Insurance Co., ruling it failed to adequately plead “direct physical loss of or damage” to its insured property.

On Oct. 15, Judge Cynthia Bashant of the U.S. District Court for the Southern District of California ruled that Mostre Exhibits LLC may file an amended pleading that she will review before deciding granting leave to amend is appropriate.

Mostre maintains that COVID-19-related government closure orders and the virus itself caused it to sustain “property damage,” triggering coverage under its policy. …