California Café Loses Bid for COVID-19 Business Interruption Coverage



DOCUMENTS
  • Order


SAN DIEGO — A California federal judge has ruled in favor of The Hanover American Insurance Co. in a café’s COVID-19 business interruption coverage action, finding there was no “direct physical loss of or damage to” property, as required by the policy.

In a Feb. 3 order, Judge Anthony J. Battaglia of the U.S. District Court for the Southern District of California agreed with the insurer that direct physical loss requires a tangible, physical alteration of the property.

Wellness Eatery operates three “Parakeet Café” locations in California, all of which were forced to significantly reduce operations when city and …






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