Calif. Appellate Court Reinstates Hotel’s COVID-19 Coverage Action Against Fireman’s Fund

LOS ANGELES — A California appellate court has reversed dismissal of a Venice Beach, Calif., hotel and restaurant’s COVID-19 coverage action against Fireman’s Fund Insurance Co., ruling they adequately pled “direct physical loss or damage” caused by the virus.

In a July 13 published opinion, the California Court of Appeal, 2nd District, found the insureds alleged a distinct, demonstrable, physical alteration of the property” as required by state case law.

The owners of Hotel Erwin and Larry’s — Marina Pacific Hotel & Suites, LLC sued Fireman’s Fund in the Los Angeles Superior Court, alleging the COVID-19 virus was present on, …