N.J. Salon Loses Bid for COVID-19 Business Interruption Coverage

  • Order

CAMDEN, N.J. — A New Jersey federal judge has dismissed a hair salon’s lawsuit demanding coverage for COVID-19-related business interruption losses, ruling that the policy’s Virus Exclusion applies to the losses because they were caused at least indirectly by a virus.

On March 25, Judge Brian R. Martinotti of the U.S. District Court for the District of New Jersey agreed with defendants Fitchburg Mutual Insurance Co. and The Norfolk & Dedham Group that although the salon alleged that its losses were caused by government closure orders, such orders were issued in response to the pandemic, triggering the exclusion.

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