Apple Annie, Inc. v. Oregon Mutual Insurance Company
Facts: A business covered by a commercial liability and property insurance policy suspends operations due to the COVID-19 lockdown, incurring a loss of business income. The insurance policy covers lost income due to a business suspension caused by damage to covered property at the insured premises. The business makes a demand on the insurer to cover the lost income. The insurer denies the coverage request for its failure to meet the qualification of property damage.
Claim: The business owner seeks money losses since the COVID-19 lockdown is a financial loss for the property.
Counterclaim: The insurer claims they are not liable for the loss of business income since the income loss was not caused by a physical loss or damage done to the commercial property.
Holding: A California appeals court holds the insurer is not liable for the loss of income the business incurred since the lost income resulted from the COVID-19 induced lockdown and not due to physical loss or damage to the property. [Apple Annie, Inc. v. Oregon Mutual Insurance Company (2022) CA5th 919]
Read Apple Annie, Inc. v. Oregon Mutual Insurance Company.
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