N.J. Daycare Loses Battle for COVID-19 Business Interruption Coverage

TRENTON, N.J. — A New Jersey federal judge has dismissed a daycare’s COVID-19 coverage action, ruling that the losses fall within the virus exclusion contained in the policy, issued by Selective Insurance Company of New England.

In a March 31 order, Judge Michael A. Shipp of the U.S. District Court for the District of New Jersey rejected Quakerbridge Early Learning LLC d/b/a Kiddie Academy of Hamilton’s argument that the exclusion is ambiguous, finding it clearly applies to losses “caused by or resulting from any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or …