Virus Exclusion Bars Coverage for N.J. Eye Care Center’s COVID-19 Losses, Judge Says

TRENTON, N.J. — A New Jersey federal judge has dismissed a COVID-19 business interruption coverage action filed by an ophthalmologic practice, ruling that the policy’s virus exclusion bars coverage.

In a Feb. 8 order, Judge Kevin McNulty of the U.S. District Court for the District of New Jersey ruled that Twin City Fire Insurance Co. is not liable for The Eye Care Center of New Jersey P.A.’s losses because they were caused by government orders issued in response to the COVID-19 virus.

In an effort to slow the spread of the virus, New Jersey state officials prohibited medical practices, including …