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California Law

  • October 2020 CALIFORNIA COURTS DELIVER ANOTHER BLOW TO COMMERCIAL POLICYHOLDERS SEEKING BUSINESS INTERRUPTION COVERAGE FOR LOSSES CAUSED BY GOVERNMENT-MANDATED “STAY AT HOME” ORDERS IN RESPONSE TO COVID-19. Another California court has held that an insurer is not obligated to cover business interruption losses for a policyholder that closed its operations due to the government-ordered shutdown in response to COVID-19.  In Mudpie Inc. v. Travelers Casualty Insurance Co. of America (“Mudpie, Inc.”), the U.S. District Court for the Northern District of California held that Travelers Casualty Insurance Co. (“Travelers”) was not obligated to pay a lost income claim by Mudpie Inc. […]