Ad Agency’s COVID-19 Coverage Action Dismissed With Leave to Amend

LOS ANGELES — A California federal judge has dismissed without prejudice a COVID-19 coverage action filed by a marketing agency that specializes in film promotion, ruling that it failed to allege “direct physical loss or damage” to its property, as required by the policy.

In an Oct. 27 order, Judge Dale Fischer of the U.S. District Court for the Central District of California cited the 9th Circuit’s recent ruling that “direct physical loss or damage” requires “physical alteration.”

Create Advertising Group LLC is an entertainment marketing agency with offices in Los Angeles and London. Beginning in March 2020, the company …