California Spas Not Covered for COVID-19 Losses, 9th Cir. Affirms

SAN FRANCISCO — A 9th Circuit U.S. Court of Appeals panel has upheld dismissal of two spa businesses’ COVID-19 coverage action against Nationwide Mutual Insurance Co., affirming there was no “direct physical loss of or damage to” property, as required by the policy.

In a March 6 memorandum, the panel agreed with the U.S. District Court for the Central District of California that mere “loss of use” without physical alteration of a property does not trigger coverage.

HP Tower Investments LLC d/b/a Beach Spa and Irvine Family Spa Inc. d/b/a I Spa argued that due to “fear and apprehension by …


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