San Francisco Thai Restaurants Lose Bid for COVID-19 Coverage in Federal Court

PORTLAND, Ore. — Two San Francisco Thai restaurants are not covered for business interruption losses they incurred after complying with government COVID-19 closure orders because they did not experience “direct physical loss of or damage to property,” a federal judge has ruled.

In a Sept. 6 order, Judge Marco A. Hernandez of the U.S. District Court for the District of Oregon agreed with defendant Oregon Mutual Insurance Co. that the property must be physically changed in some manner for coverage to be triggered.

Nari Suda LLC d/b/a Nari and Pakin Corp. d/b/a Kin Khao operate two dine-in Thai restaurants in …