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January 5, 2022

No Relief For The Inn: Business Income Losses Due To Government’s Covid-19 Shutdown Orders Are Not “Physically Caused” By Covid-19 So Not Covered By Standard Commercial Property Insurance

Addressing an issue of first impression in California, the Court of Appeal for the Second District has confirmed that businesses compelled to cease operations as a result of governmental directives issued in response to the COVID-19 pandemic cannot look to their property insurance carriers to cover the lost business income.