Calif. App. Court Reinstates Restaurant’s COVID-19 Coverage Action

SAN FRANCISCO — A California appellate court has reinstated a restaurant’s COVID-19 coverage action against Sentinel Insurance Company Ltd., ruling that the policy’s language is “virus specific” and covers “pervasive infiltration of virus particulates onto the surfaces of covered property.”

In a Dec. 27 published opinion, the California Court of Appeal, 4th Division, explained that “unlike the undefined term ‘direct physical loss of or damage to’ property in almost all of the COVID-19 business interruption cases decided to date, Sentinel’s policy, by endorsement, contains an affirmative grant of coverage specifically for ‘loss or damage’ caused by a virus.”

The …