O'Brien Sales and Marketing, Inc. v. Transportation Insurance Company

BACKGROUND

22 The instant action, like many other actions filed in this district, arises in the context 23 of the COVID-19 pandemic and the significant impact the pandemic has had on business 24 operations nationwide. O’Brien, a marketing agency (see Second Am. Compl. (“SAC”) 25 ¶ 13), alleges that, “[d]ue to safety concerns about COVID-19, and in accordance with 26 state orders, [it] stopped using its business offices to host clients and vendors” (see id. 27 ¶ 53), and could not, at times, access its business premises (see id. ¶ 58). O’Brien further alleges it submitted, under an insurance policy (“Policy”) issued by TIC, a claim for business income lost and expenses incurred as a result of the above-described disruption. (See id. ¶¶ 59-60.) The Policy provides “Business Income and Extra Expense” coverage as follows:

1. Business Income

a. Business Income means:

(1) Net Income . . . that would have been earned or incurred . . . ; and 8 (2) Continuing normal operating expenses incurred . . . . 9 b. We will pay for the actual loss of Business Income you sustain due to the necessary “suspension” of…