Microorganism Exclusion Applies to COVID-19 Virus, N.J. Federal Judge Rules



DOCUMENTS
  • Order


NEWARK, N.J. — A New Jersey federal judge has granted Zurich American Insurance Co.’s motion to dismiss a theatre’s claims for COVID-19-related business income and civil authority coverage, ruling that the policy’s microorganism exclusion applies.

In a Dec. 17 order, Judge Brian R. Martinotti of the U.S. District Court for the District of New Jersey rejected Count Basie Theatre Inc.’s argument that the exclusion is ambiguous because the COVID-19 virus is not a microorganism.

“Count Basie’s assertion that a virus is generally not considered an organism is irrelevant, because an insurance policy may adopt special definitions for its terms, even …






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