Finally weighing in on whether the presence of COVID-19 constitutes direct physical loss or damage to property, the California Supreme Court answered a certified question from the Ninth Circuit by determining there was no coverage under California law. Another Planet Entertainment, LLC v. Vigilant Ins. Co., 2024 Cal. LEXIS 2738 (Cal. May 23, 2024).

Another Planet operated venues for live entertainment. It suffered pandemic-related business losses when its venues closed. It alleged it suffered losses in excess of $20 million. Another Planet submitted a claim to Vigilant for direct physical loss or damage to its properties and consequent economic losses. Vigilant denied coverage contending Another Planet had not shown "physical loss or damage that would implicate coverage."