Virus Exclusion Bars N.J. Tanning Salon from Recouping COVID-19 Losses, Judge Rules

CAMDEN, N.J. — A virus exclusion bars a New Jersey tanning salon from recouping its COVID-19 business interruption losses from Scottsdale Insurance Co. and Nationwide Mutual Insurance Co., a federal judge has ruled.

In a May 28 order, Judge Brian Martinotti of the U.S. District Court for the District of New Jersey found the exclusion clearly bars coverage for losses “caused by or resulting from any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease.”

In March 2020, Beach Glo Tanning Studio Inc. temporarily ceased operations in compliance with COVID-19 government …