Luxury Retailer Not Covered for COVID-19 Losses, N.J. Appellate Panel Affirms
December 21, 2023
TRENTON, N.J. — A luxury fashion retailer cannot recoup income losses and expenses it incurred during the COVID-19 pandemic under a policy issued as part of a quota share reinsurance program because it did not sustain direct physical loss of damage to its properties, a New Jersey appellate court has affirmed.
In a Dec. 18 opinion, the Superior Court of New Jersey, Appellate Division, explained that under New Jersey law, the terms “direct physical loss” and “physical damage” do not extend to mere loss of use of a premises where there has been no physical damage.
Capri Holdings Inc., a …