L.A. Businesses Lose Battle for COVID-19 Coverage in 9th Cir.

SAN FRANCISCO — A 9th Circuit U.S. Court of Appeals panel has upheld dismissal of a COVID-19 coverage action against AmGUARD Insurance Co., affirming that the businesses’ claimed losses fell within the policies’ virus exclusion.

In a Dec. 12 opinion, the appellate panel agreed with the lower court that the losses were efficiently caused by the COVID-19 virus, rather than the government shutdown orders issued in response to the pandemic.

In July 2021, a group of Los Angeles businesses sued AmGUARD in the U.S. District Court for the Central District of California, seeking coverage for losses they sustained when they …