Court of Appeal holds that Covid 19 losses not covered by commercial property insurance
2021 case review: The Inns by the Sea v. Cal. Mutual Ins. Co.
Published on Sun, 02/06/2022 - 9:53pm
Contributors
Christian Scali
Founder and Managing Shareholder
In this case a hotel sued its insurer to recover for COVID related losses. As the Court itself related in the decision, the case “[P]resent[ed] an issue of first impression for a California appellate court: does a commercial property insurance policy provide coverage for a business’s lost income due to the COVID-19 pandemic?” The Appellate Court affirmed the trial court’s decision that there was no coverage, as the spread of the disease did not cause direct physical damage to the business’ property that resulted in losses.