Sacramento Kings Arena's COVID-19 Coverage Action Survives Dismissal Motion

SACRAMENTO, Calif. — A California federal court has refused to dismiss a COVID-19 insurance action filed against Factory Mutual Insurance Co. by the owner of the Sacramento Kings’ arena, ruling that its claim is potentially covered under the policy’s provisions for communicable disease and time element coverage.

In an Oct. 28 order, the U.S. District Court for the Eastern District of California reasoned that an insured could reasonably expect that the presence of a communicable disease such as COVID-19 fits under the “physical loss or damage” umbrella for the policy as a whole.

Sacramento Downtown Arena LLC and Sacramento …