San Diego Nightclub Says COVID-19 Virus Caused ‘Direct Physical Loss of or Damage’

LOS ANGELES — A San Diego nightclub is urging a California federal judge to deny Topa Insurance Co.’s motion to dismiss its COVID-19 business interruption coverage action, arguing that the virus and related government closure orders caused it to sustain “direct physical loss of or damage” to its insured property.

In a Sept. 28 opposition filed in the U.S. District Court for the Central District of California, Caribe Restaurant & Nightclub Inc. contends that the term “physical loss of or damage” does not require structure alteration to property.

Caribe was forced to close its San Diego restaurant and nightclub La …