Calif. Medical Clinic Says State Farm Denied COVID-19 Coverage Claim in Bad Faith

SAN FRANCISCO — A California medical clinic has sued State Farm General Insurance Co., seeking coverage for business income losses it sustained after government COVID-19 civil authority orders barred it from performing anything but emergency procedures.

In a complaint removed to the U.S. District Court for the Northern District of California on June 29, HealthNOW Medical Center Inc., which operates the Root Cause Medical Clinic, says the orders triggered coverage under its policy’s provisions for Income, Extra Expense, Extended Business Income, and Civil Authority.

In response to the outbreak of the COVID-19 virus in the United States, California Governor Gavin …