Calif. T-Shirt Co. Says COVID-19, Closure Orders Caused Direct Physical Loss

SAN FRANCISCO — A California t-shirt company has filed a proposed class action against Sentinel Insurance Company Ltd., seeking coverage for losses it sustained when the COVID-19 pandemic and related government orders forced it to close its retail stores.

In a June 20 complaint filed in the U.S. District Court for the Northern District of California, Oaklandish LLC says its compliance with state and local stay-at-home orders has caused it to sustain direct physical loss to its chain of stores, triggering coverage under its policy.

“The impact of these orders is felt not simply in their direct application to Oaklandish’s …