N.J. Appellate Court Upholds Dismissal of COVID-19 Coverage Actions

  • Opinion

TRENTON, N.J. — A New Jersey appellate court has ruled that several small businesses cannot recover COVID-19-related business interruption losses and expenses from their insurers because they did not sustain "direct physical loss of or damage to" covered property.

In the six consolidated appeals, the New Jersey Superior Court, Appellate Division ruled June 20 that plaintiffs failed to allege “a detrimental physical alteration of some kind” or “a physical loss of the insured property.”

The plaintiffs, Pearl Three Two LLC d/b/a Route 40 Diner, Precious Treasures, Mac Property Group LLC, The Cake Boutique LLC, Mattdogg Inc. d/b/a/ Pure Focus Sports, …


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