N.J. Restaurant, Hotel Owners Lose Bid for COVID-19 Business Interruption Coverage
March 18, 2021
CAMDEN, N.J. — The owners of 120 restaurant and hotel franchises are not entitled to coverage for $40 million in claimed losses arising from the COVID-19 pandemic and related government stay-at-home orders, a New Jersey federal judge has ruled.
In a March 17 letter opinion, Judge Susan Wigenton the U.S. District Court for the District of New Jersey held that The Briad Group and various affiliates did not sustain “direct physical loss of or damage to property” as required by the policy issued by American Guaranty & Liability Insurance Co.
Briad owns three major divisions: quick service, which operates …