In-N-Out Burger Chain Appeals Adverse COVID-19 Coverage Ruling to 9th Cir.

LOS ANGELES — The In-N-Out burger chain will appeal a California federal judge’s ruling that it is not covered for COVID-19 business interruption losses under a policy issued by Zurich American Insurance Co. because it did not sustain “direct physical loss or damage to” covered property.

In-N-Out filed its notice of appeal in the 9th Circuit U.S. Court of Appeals following the U.S. District Court for the Central District of California’s Feb. 22 dismissal of the action.

In-N-Out contends it was forced to close dining rooms in its 350 restaurants due to the COVID-19 pandemic and related stay-at-home orders. It …