Preschool’s COVID-19 Business Income Losses May be Covered, Calif. Federal Judge Rules

SAN DIEGO — A California federal judge has refused to dismiss a preschool’s COVID-19 coverage action, ruling that its business income losses may be covered under the policy’s “Communicable Disease” endorsement.

In a Dec. 21 order, Judge Marilyn L. Huff of the U.S. District Court for the Southern District of California concluded that a more developed record is needed before the court can determine whether Markel Insurance Co. must pay for the preschool’s losses.

Baldwin Academy and Perico Holdings USA LLC (Baldwin, collectively) operate a preschool in San Diego, Calif. On March 14, a parent of one of Baldwin's students …