Calif. Appellate Court Reinstates Amy’s Kitchen COVID-19 Coverage Action

SANTA ROSA, Calif. — A California appellate panel has reinstated a COVID-19 coverage action filed by Amy’s Kitchen Inc. against Fireman’s Fund Insurance Co., ruling that the trial court erred in ruling that there is no coverage under the policy’s “communicable disease” provision.

In an Oct. 4 opinion, the California Court of Appeal, 1st District, found that the phrase “direct physical loss or damage” in the provision can apply to costs incurred to mitigate, contain, remediate, treat, clean, detoxify, disinfect, neutralize, cleanup, remove, dispose of, test for, monitor, and assess the effects [of] the communicable disease.”

“The trial court …