Calif. Fine Dining Restaurant Not Covered for COVID-19 Losses, 9th Cir. Affirms

  • Opinion

SAN FRANCISCO — The owner of a California fine dining restaurant cannot recoup COVID-19-related business interruption losses from Sentinel Insurance Co. because it did not sustain “direct physical loss of or damage” to property, the 9th Circuit U.S. Court of Appeals has affirmed.

On Oct. 25, the appellate panel agreed with the U.S. District Court for the Central District of California that government stay-at-home orders issued in response to the pandemic do not physically alter property, which is required to trigger coverage.

Protégé Restaurant Partners owns and operates the Protégé restaurant in Palo Alto, Calif. In March 2020, Protégé sought …


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