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COVID-19 Most Courts Are Rejecting All Risk Insurance Policy Claims Related to COVID-19 The overwhelming majority of courts have concluded that neither COVID-19 nor the governmental orders associated with it cause or constitute property loss or damage for purposes of insurance coverage. So concluded the district court in Out West Restaurant Gp., Inc. v. Affiliated FM Ins. Co., No. 20-cv-06786, 2021 WL 1056627 (N.D. Cal. March 19, 2021). The court continued, These decisions have reasoned that the virus fails to cause physical alteration of property because temporary loss of use of property (if any) during a pandemic and while government orders are in effect does not qualify as physical loss

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