Yes. The definition of “physical damage” included “physical loss” of the plane and the court held this could reasonably extend to a government seizure. The insured’s attorney fees incurred to obtain release of the plane were covered because the insured was obligated to protect its property under the policy and the attorney fees were incurred to prevent further “physical loss” of the plane.
See American Alternative Ins. v. Superior Court (2006) 135 Cal.App.4th 1239.