STORY FROM: Superstorm Sandy Insurance Litigation

Policy Does Not Cover $1.9 Million in Business Income Losses, N.J. Federal Judge Rules

CAMDEN, N.J. — A policyholder cannot recover $1.9 million in business income losses resulting from a loss of electricity during Superstorm Sandy because the power outage was caused by damage to overhead transmission and distribution lines, which is not covered under the “all risk” policy, a New Jersey federal judge has ruled.

In a May 23 order, Judge Noel L. Hillman of the U.S. District Court for the District of New Jersey held that a downed utility pole, which ultimately caused the loss of electricity, does not constitute an “electrical generating plant or any other plant” as defined by the ...

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