Coverage for N.J. Car Dealership’s COVID-19 Losses Excluded, Federal Judge Rules



DOCUMENTS
  • Order


CAMDEN, N.J. — A New Jersey federal judge has dismissed a COVID-19 business interruption coverage action filed by a car dealership against Zurich American Insurance Co., ruling that the policy’s Virus Exclusion bars coverage.

In a March 25 order, Judge Brian R. Martinotti Ruled that ruled that the exclusion clearly applies to Downs Ford Inc.’s losses because the government orders restricting its operations were issued in response to the threat of the COVID-19 virus.

Beginning in March 2020, Downs Ford, a Toms River, N.J., automobile dealership, was forced to temporarily close its showroom and limit business operations in compliance …






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