Calif. Retail Establishment Not Covered for COVID-19 Losses, Judge Rules

LOS ANGELES — A California federal judge has dismissed a retail establishment’s COVID-19 coverage action, agreeing with Continental Insurance Co. that there was no “direct physical loss of or damage to” covered property, as required by the policy.

In an April 1 order, Judge Otis D. Wright II of the U.S. District Court for the Central District of California joined the growing consensus that “economic business impairments caused by COVID-19 safety orders” are not covered under all-risk commercial policies.

Motiv Group is a retail establishment that has a store and a warehouse. In March 2020, state and local officials ordered …