Calif. Appeals Court Finds No Coverage for Hotel Owner’s COVID-19 Economic Losses

  • Opinion

SANTA ANA, Calif. — Economic losses caused by government stay-at-home orders issued in response to the COVID-19 pandemic do not trigger coverage under property insurance policies, a California appellate court has ruled in a case filed by a hotel owner against California Mutual Insurance Co.

In a Nov. 15 opinion, the California Court of Appeal, 4th District, reasoned that the orders do not cause “direct physical loss of or damage” to insured property, as required by the policy.

The Inns by the Sea operates five boutique hotels — four in Carmel-by-the-Sea, Calif., and one in Half Moon Bay, Calif. In …


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