Insurance Case Hinges on Whether Covid Virus Damages Property

California Supreme Court justices on Tuesday focused on the potential implications of ruling that the Covid-19 virus’ presence in surfaces is sufficient to show property damage for commercial insurance coverage.

Justices during oral argument questioned the contours of coverage and implications for policyholders and insurers as businesses and the insurance industry contend with the fallout from government-ordered shutdowns during the pandemic, with an eye toward future wildfires and other calamities in a disaster-prone California.

The potential billion-dollar answer now rests with the seven-member state supreme court.

Associate Justice Goodwin Liu asked whether the distinguishing feature of the Covid virus unlike ...