California Court of Appeals Rules Against BI Antivirus Coverage for Motels
In what is believed to be a state’s first appeal decision on the matter, a California intermediate appeals court ruled that there was no COVID-activity disruption coverage. 19 in disputes filed by a group of motels.
The California Court of Appeals in San Diego ruled in its Nov. 15 decision The Inns by the Sea v. California Mutual Insurance Co. there was no physical loss or damage caused by the virus. The policy did not include a virus exclusion.
Inns, which operates four lodging establishments in Carmel-by-the-Sea, Calif., And one in Half Moon Bay, Calif., Filed its lawsuit in April 2020, according to the ruling.
âWhile no California appeals court has addressed the issue, many federal courts and courts in other states have,â the ruling says.
“The overwhelming majority of federal district court cases do not find any possibility of coverage by commercial property insurance policies for the loss of income related to the pandemic of a business,” he said.
A panel of three judges agreed with these other decisions. “In summary, we conclude that Inns has not alleged a ‘direct physical loss of’ property, based on the fact that it has lost the ability to use its physical premises to generate income,” he said. -he declares.
âThe lack of virus exclusion in the policy does not affect the meaning of ‘direct physical loss or damage to’ property, ‘he said.
Lawyers handling the case did not respond to requests for comment.