California Superior Court Overrules Insurer's Demurrer on COVID-19 Claim

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The complaint expressly alleged that the coronavirus and COVID-10 caused direct physical loss and damage to the insured's property.

February 15, 2021
Tred R. Eyerly - Insurance Law Hawaii

A Superior Court in California overruled the insurer's demurrer to the policy holder's complaint seeking business interruption coverage after government shutdown orders were issued because of the coronavirus pandemic. Goodwill Industries of Orange County, California v. Philadelphia Indemnity Ins. Co., Cal. Superior Ct., Civil No. 30-2020-01169032-CU-IC-CXC (Minute Order Jan. 28,, 2021). The minute order is here [Goodwill Decision].

The insurer demurred on the ground that the insured had not alleged sufficient facts to show "direct physical loss" under the business income, extra expenses and civil authority provisions in the policy because coronavirus and COVID-19 did not physically alter the structure.

Mr. Eyerly may be contacted at te@hawaiilawyer.com



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