Calif. Appellate Court Reinstate Restaurant’s COVID-19 Coverage Action

LOS ANGELES — A California appellate court has reinstated a restaurant’s COVID-19 coverage action against Century-National Insurance Co., ruling it adequately alleged “direct physical loss or damage to property” caused by the presence of the virus at its insured premises.

In a Dec. 14 opinion, the California Court of Appeal, 2nd District, found the plaintiff sufficiently alleged the virus was present at its property at various times, that it can remain on surfaces for at least 28 days, and that routine cleaning was insufficient.

Shusha Inc. d/b/a La Cava, a Los Angeles restaurant, suspended operations in March 2020 in …