STORY FROM: COVID-19 Litigation Report
L.A. Dance Studio Says COVID-19 Stay-At-Home Orders Caused ‘Physical Loss or Damage’
June 22, 2020
LOS ANGELES — A Los Angeles dance studio has filed a class action complaint against Farmers Insurance Company Inc., demanding coverage for business interruption losses it sustained when COVID-19 civil authority orders forced it to temporarily close.
In a June 19 complaint filed in the U.S. District Court for the Central District of California, Monarch Ballroom LLC contends the orders caused its insured property to sustain “direct physical loss or damage,” triggering coverage under the policy.
Monarch further asserts that the policy’s Virus or Bacteria and Mold and Microorganism exclusions do not exclude coverage for its business income and extra ...