San Francisco Restaurant Owners Say COVID-19 Closure Orders Caused Physical Loss

SAN FRANCISCO — The owners of two San Francisco restaurants have sued California Capital Insurance Co. in federal court, arguing that business interruption losses caused by civil authority orders issued in response to the COVID-19 pandemic are covered under their policy.

Boxed Foods Company, LLC and Gourmet Provisions, LLC, which own the B Restaurant and Bar and The Pin Up All-Star Diner say the orders constitute a prohibition of access to their property, triggering coverage, and that their loss is not excluded under the policy.

“Under the Policy, insurance is extended to apply to the actual loss of business income …