Calif. Café Says AmGuard Insurance Denied COVID-19 Claim in Bad Faith
September 3, 2020
LOS ANGELES — The owner of a Santa Monica, Calif., café has sued AmGuard Insurance Co., seeking coverage for business interruption losses it sustained when it was forced to shut down its on-site dining operations by government COVID-19 social distancing orders.
In a complaint removed to the U.S. District Court for the Central District of California on Sept. 2, Posh Café contends that coverage is available under its policy’s provisions for Business Income and Extra Expense, yet AmGuard denied its claim without an investigation.
“Engaging in the business of insurance in California imposes upon insurers the legal obligation to promptly …