9th Cir. Upholds Dismissal of Wash. Yoga Studio’s COVID-19 Coverage Action

SAN FRANCISCO — A 9th Circuit U.S. Court of Appeals panel has affirmed that a yoga studio cannot recoup COVID-19 economic losses from its insurer because it did not sustain “direct physical loss or damage to property,” as required by the policy.

On Oct. 17, the panel agreed with the U.S. District Court for the Western District of Washington that coverage under the policy issued by Philadelphia Indemnity Insurance Co. is not triggered by mere “loss of use.”

Hot Yoga Inc. suspended operations in March 2020 after Washington state lawmakers required all non-essential businesses to close due to the COVID-19 …