Virus Exclusion Bars N.J. Daycare Owners from Recovering COVID-19 Losses

TRENTON, N.J. — The owners of several New Jersey daycares cannot recover COVID-19-related economic losses from Berkshire Hathaway Insurance Co. because they are encompassed by the policy’s virus exclusion, a New Jersey federal judge has ruled.

On Dec. 14, Judge William J. Martini of the U.S. District Court for the District of New Jersey ruled that the virus “was the proximate and predominant cause” of the Learning Experience Corp. (TLE)’s losses and therefore coverage is barred.

In March, New Jersey Governor Phil Murphy and local authorities issued a series of orders, requiring all non-life sustaining businesses in the state …