N.J. Federal Judges Say Virus Exclusions Defeat Coverage for COVID-19 Losses

CAMDEN, N.J. — Two New Jersey federal judges have dismissed COVID-19 insurance actions filed by a hair salon and a dry-cleaning chain against Sentinel Insurance Co. and Twin City Fire Insurance Co., ruling that the policies’ virus exclusions bar coverage.

In orders issued Aug. 8 and 9, Judges Michael A. Shipp and Noel L. Hillman of the U.S. District Court for the District of New Jersey noted that many courts across the country have ruled that nearly identical virus exclusions apply to losses caused by government shutdown orders issued in response to the pandemic.

The actions were filed by Salon …