Hotel Owners Lose Bid for COVID-19 Coverage in N.J. Court
October 11, 2021
HACKENSACK, N.J. — Five hotel owners have lost their battle for COVID-19 business interruption coverage in New Jersey court after a judge ruled that government closure orders issued in response to the pandemic do not cause “direct physical loss or damage.”
In an Oct. 5 order, Judge Robert C. Wilson of the New Jersey Superior Court explained that courts in the state construe “direct physical loss” to require physical loss or damage to property — either through structural alteration to property or sever physical contamination of the property.
Plaintiffs Highgate Hotels, L.P., 6 West 32nd Street LLC, Republic Midtown Hospitality …