Palm Springs Resort Says COVID-19, Closure Orders Caused Covered Losses

LOS ANGELES — The owners of a Palm Springs resort have sued American Automobile Insurance Co. in an effort to recoup losses it sustained when the COVID-19 pandemic and related civil authority orders forced it to suspend or reduce operations.

In a complaint removed to the U.S. District Court for the Central District of California on Sept. 16, Walter Family Partnership d/b/a Hilton Palm Springs Resort contends that it suffered “physical loss or damage,” triggering coverage under the policy’s Business Income Coverage Form.

“The COVID- 19 virus causes physical loss or damage to property through the well-documented fact that it …