9th Cir. Finds for Continental in Dental Supplier’s COVID-19 Coverage Action

SAN FRANCISCO — A California-based manufacturer of dental appliances is not entitled to coverage from Continental Casualty Co. for its COVID-19-related business interruption losses because it did not adequately allege “direct physical loss of or damage to” its property, a federal appellate panel has ruled.

In an Oct. 1 memorandum, the 9th Circuit U.S. Court of Appeals panel referred to its ruling in Mudpie, Inc. v. Travelers Casualty Insurance Co. of America, No. 20-16858, __ F.4th __ (9th Cir. Oct. 1, 2021), in which it held that a physical alteration of property is required to trigger coverage under the policy’s …