Goodwill Wins Initial Battle in Calif. COVID-19 Business Interruption Coverage Action

SANTA ANA, Calif. — A California judge has refused to dismiss Goodwill’s COVID-19 coverage lawsuit against Philadelphia Indemnity Insurance Co., ruling that it has sufficiently pled “direct physical loss of or damage” to its insured properties, as required by the policy.

In a Jan. 18 order, Judge Peter Wilson of the Orange County (Calif.) Superior Court found the complaint adequately alleges that the COVID-19 virus contaminated the insured properties, causing physical loss of or damage.

Goodwill says it was forced to cease its operations in compliance with state and local COVID-19 stay-at-home orders that were issued in March. Goodwill says …