Judge's gavel coming down on a pile of money. The court decided that direct physical loss or damage could be shown without evidence of a physical alteration in the insured property. (Photo courtesy of Bigstock)

The California Court of Appeal has reversed the trial court’s granting of demurrer and found that an insured adequately pled a claim of direct physical loss or damage due to the presence of the COVID-19 virus on an insured property. The case is Marina Pacific Hotel & Suites, LLC v. Fireman’s Fund Ins. Co., No. B316501, 2022 Cal. Ct. App. (Ct. App. July 13, 2022).

Fireman’s Fund insurance company issued a commercial property policy to Mariana Pacific Hotel and Suites for the time period between July 1, 2019, and July 1, 2020, that provided coverage for direct physical loss or damage to the insured property. The policy provided business interruption coverage with a $22 million limit for the “actual loss of business income and necessary extra expense you sustain due to necessary suspension of your operation during the period of restoration arising from direct physical loss or damage to property.”


Complex Claims & Litigation Forum 2023Event

Aimed to help Insurers prevent, prepare and prevail In adjudicating complex claims, negotiating settlements and winning cases.

Get More Information

African Legal Awards (AFLA) 2022Event

The African Legal Awards recognise exceptional achievement within Africa s legal community during a period of rapid change.

Get More Information

The British Legal Awards (BLA) 2022Event

Celebrating achievement, excellence, and innovation in the legal profession in the UK.

Get More Information


Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2022 ALM Global, LLC. All Rights Reserved.