Another Planet Entertainment, LLC v. Vigilant Insurance Co.

Summary

The California Supreme Court held that the actual or potential presence of COVID-19 on insured premises generally does not constitute direct physical loss or damage under a commercial property insurance policy. Such coverage requires a distinct, demonstrable physical alteration that causes injury to or impairment of the property itself; allegations of microscopic viral interaction, temporary unusability, pandemic-related business closures, or preventive measures were insufficient. The court answered the Ninth Circuit's certified question in the negative.