Appeals Court: Virus Exclusion Fatal to COVID-19 Business Interruption Claim
The New Jersey Appellate Division affirmed an order granting summary judgment to an insurer on 13 claims, all related to denied coverage for business losses incurred following Gov. Phil Murphy's Executive Order 107, which closed nonessential businesses and prohibited social gatherings.
June 23, 2022 at 10:45 AM
3 minute read
The New Jersey Appellate Division affirmed an order granting summary judgment to an insurer on 13 claims, all related to denied coverage for business losses incurred following Gov. Phil Murphy's Executive Order 107, which closed nonessential businesses and prohibited social gatherings.
According to the per curiam opinion, Rockleigh Country Club submitted a claim against its insurer, Hartford Insurance Co., for "business losses and expenses it incurred due to the closure of its facility in response to EO 107′s requirements and restrictions." Hartford denied the claim.
In its complaint, Rockleigh "asserted fourteen causes of action, including breach of contract, breach of the covenant of good faith and fair dealing, bad faith, fraud, and others." Rockleigh's appeal challenged an order that denied summary judgment for its business interruption, breach of contract, and extra expense coverage claims.
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