The federal district court found that smoke and soot contamination rendered the property unfit for normal use, meeting the standard for "direct physical loss" under the policy language for recovery of business income. Bottega, LLC, et al. v. National Surety Corporation-Chicago, Il, 2025 U.S. Dist. LEXIS 5666 (N.D. Cal. Jan. 10, 2025).

Bottega, a restaurant in Northern California, held a policy issued by National Surety which provided for loss of Business Income due to the necessary suspension of operation. The policy provided, "The suspension must be caused by direct physical loss of or damage to property at the premises described in the Declarations."

On October 8, 2017, a series of fires began in the area. The following day, the governor proclaimed a state of emergency closing various roads from approximately October 9 to 18, 2017, restricting access to the insured property. The fires did not reach the insured's property, but came very close. Bottega closed on October 9, 2017. The restaurant partially reopened the following day so that food could be provided and served to first responders. Bottega remained in operation throughout the fires except for the closure on October 16, 2017.