Tao Group Holdings Loses Battle for COVID-19 Coverage in 9th Cir.

  • Order

SAN FRANCISCO — The 9th Circuit U.S. Court of Appeals has upheld dismissal of a COVID-19 coverage action filed by the owner of several high-end restaurants and nightclubs, ruling that it did not sustain “direct physical loss or damage,” as required by the policy.

On Nov. 18, the appellate panel affirmed that mere “loss of use” caused by government closure orders and/or the virus itself does not trigger coverage.

Employers Insurance Company of Wausau issued Tao Group Holdings LLC a policy that covered Tao’s restaurant and entertainment venues “against all risks of direct physical loss or damage,” except those expressly …


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