NJ Court Allows Covid-Related Business Interruption Claim

New Jersey Trial Court Allows Covid-Related Business Interruption Claim to Proceed and Denies Defendant Insurer's Motion to Dismiss


Livingston, N.J., September 30, 2020The Bergen County Superior Court recently rejected a defendant insurer’s claim that COVID-19related losses cannot qualify as covered losses under a business owners’ policy which included coverage for business interruption, and the Court denied the defendant insurers’ motion to dismiss the Plaintiff policyholders’ Complaint. In Optical Services USA/JCI vs. Franklin Mutual Insurance Co., the Plaintiff policyholders asserted they had purchased business interruption insurance coverage to protect their businesses from an “unanticipated crisis” and that such a crisis struck in March 2020 when COVID-19 caused New Jersey Governor Murphy to issue Executive Orders requiring nonessential businesses to close. Plaintiffs alleged that they closed their businesses in compliance with Governor Murphy’s Executive Orders and suffered resulting significant financial losses that were covered by the defendant’s insurance policy. Read more

Recent Posts

See All

Correct Classification of YOUR Employees

Per Diem Classification for Traveling Nurse, Healthcare, and IT Staffing Firms Correctly classifying workers as independent contractors is being scrutinized more today than at any time throughout our