Preschool’s COVID-19 Coverage Action Proceeds in Calif. Federal Court

SAN DIEGO — A California federal judge has refused to dismiss a preschool’s COVID-19 insurance action, finding it has plausibly alleged an “outbreak” of the virus at its premises, which could trigger coverage under the policy’s “Communicable Disease and Food Contamination” endorsement.

In a Dec. 21 order, Judge Marilyn L. Huff of the U.S. District Court for the Southern District of California further found Baldwin Academy Inc. adequately alleged the shutdown of its operations was “the result of an order or recommendation from” government authorities, as required by the endorsement.

Baldwin Academy and Perico Holdings USA LLC (Baldwin, collectively) …