Travelers Urges 9th Cir. to Uphold Dismissal of Retailer’s COVID-19 Coverage Action

SAN FRANCISCO — Travelers Casualty Insurance Company of America told the 9th Circuit U.S. Court of Appeals that a children’s clothing store is not entitled to coverage for COVID-19 business interruption losses because it did not allege “a direct physical loss of” property as required by the policy.

In a Feb. 8 brief, the insurer maintains that a California federal court properly dismissed the action filed by Mudpie Inc. because the retailer failed to allege that the presence of the virus on its property caused a physical loss.

“This is a straightforward case that can and should be decided under …