Transportation Insurance Hit With COVID-19 Coverage Action in Calif. Federal Court

SAN FRANCISCO — Transportation Insurance Co. is facing a federal class action following its denial of a claim for COVID-19-related business interruption losses filed by a Newport Beach, Calif., marketing agency.

In an April 29 complaint filed in the U.S. District Court for the Northern District of California, O’Brien Sales and Marketing Inc. maintains that coverage is available under its policy’s “Business Income,” “Extra Expense” and “Civil Authority” provisions.

“Although COVID-19 is a caused by virulent virus strain, SARS-CoV-2, that is novel to humans, the damage it inflicts is the type of physical damage covered by ‘all risk’ policies such …