N.J. Plastic Surgery Clinic Loses Battle for COVID-19 Business Interruption Coverage

MONMOUTH, N.J. — A New Jersey judge has dismissed a New Jersey plastic surgery clinic’s lawsuit demanding coverage for COVID-19-related business interruption losses, ruling that it failed to allege “direct physical loss of or damage” to property.

In a June 22 order, Judge Joseph Oxley of the Monmouth County Superior Court further ruled that even if government closure orders and/or the COVID-19 virus itself caused The Plastic Surgery Center P.A. to sustain such loss or damage, the policy’s virus exclusion clearly barred coverage.

The Plastic Surgery Center was forced to temporarily halt elective procedures at its 37 locations in New …