Jenner & Block

“Property Damage Is Not Necessarily Physical in California,” Insurance Law Update

In the December Insurance Law Update, Jenner & Block Partner Jan A. Larson and Associate Catherine L. Doyle highlight Thee Sombrero Inc. v. Scottsdale Insurance Company.  In that commercial general liability insurance dispute, a California appellate court construed the policy’s property damage coverage to include the loss of a particular use of tangible property, measured by economic loss calculations, without requiring physical damage.  “We suggest that policyholders facing similar situations familiarize themselves with this opinion when advocating for coverage for loss of a particular use of tangible property, resulting in economic losses,” the authors observe.  The Update was republished in Law360.