San Francisco Restaurant Loses Bid for COVID-19 Business Interruption Coverage



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SAN FRANCISCO — A federal judge has dismissed a San Francisco restaurant’s COVID-19 business interruption coverage action, ruling that Atain Insurance Co. has no obligation to pay insurance proceeds because there was no “direct physical loss of or damage” to property.

In a Dec. 21 order, Judge Maxine Chesney of the U.S. District Court for the Northern District of California rejected Mortar and Pestle Corp. d/b/a Olea Restaurant’s argument that physical alteration to the structure of property is not required, and that the “mere loss of use of tangible property that is not physically injured” is enough.

“The California Court …






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