California Appeals Court Overturns Denial of COVID-19 Insurance Claim

Citing a communicable disease coverage extension, a California state appeals court overturned a lower court Thursday and ruled that a restaurant group was entitled to insurance coverage from an Allianz SE unit for its COVID-19-related business interruption losses.

West Hollywood, California-based Saddle Ranch Sunset LLC, which operates three restaurants in California and one in Arizona, sued Fireman’s Fund Insurance Co. for breach of contract and breach of the implied covenant of good faith and fair dealing after the insurer denied its COVID-19-related claims, according to the ruling by the California Court of Appeal in Los Angeles in Saddle Ranch Sunset LLC et al. v. Fireman’s Fund Insurance Company et al.

A three-judge appeals court panel cited the restaurant group’s communicable disease coverage extension in overturning the lower court.