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Insurance

Apr. 11, 2023

COVID can cause covered physical damage, panel says

“The causation holding in the opinion is a significant victory for policyholders and a significant clarification of the law in California, and I think it will stand at the end of the day,” said David B. Goodwin, senior counsel at Covington & Burling.

COVID-19 can cause direct physical loss damage that would be covered by business interruption insurance, the 4th District Court of Appeal ruled Monday in a decision that could be good news for policyholders.

While AmGUARD Insurance Company prevailed in arguing that a virus exception barred coverage for an Orange County restaurant, some attorneys say the decision could still benefit business owners suing for coverage in similar cases throug...

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