‘Startup Incubator’ Founder Institute Sues Insurers for COVID-19 Business Losses

SAN FRANCISCO — A “startup incubator” company that was forced to close its Santa Clara, Calif., headquarters due to the COVID-19 pandemic and related civil authority orders has sued its insurers for business interruption coverage.

In a complaint removed to the U.S. District Court for the Northern District of California, Founder Institute Inc. contends that coverage under its policy issued by Hartford Fire Insurance Co. and Sentinel Insurance Company Ltd. was triggered by the orders.

“Specifically, as a result of civil ordinances, plaintiff’s central operations or so-called scheduled premises were shut down or severely reduced in operations, crippling its ability …