Virus Exclusion Defeats N.J. Eyewear Shop’s Bid for COVID-19 Coverage



DOCUMENTS
  • Order


TRENTON, N.J. — A New Jersey eyewear shop is not covered for business interruption losses sustained during the COVID-19 pandemic because they are encompassed by the virus exclusion in its policy, a federal judge has ruled.

In a Sept. 20 order, Judge Esther Salas of the U.S. District Court for the District of New Jersey rejected J.G. Optical Inc.’s argument that the exclusion is ambiguous because it can be reasonably understood to exclude coverage only for losses or damage due to a virus that is physically present on the insured premises.

“By its clear terms, the Virus Exclusion provides …






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