Insurer Says N.J. Ice Cream Shop’s COVID-19 Economic Losses Not Covered

CAMDEN, N.J. — An insurer is seeking dismissal of a New Jersey ice cream shop’s lawsuit seeking coverage for COVID-19-related business interruption losses, arguing that the policy does not cover “pure economic losses caused by apprehension of, or efforts to contain, a pandemic.”

In a July 22 motion filed in the U.S. District Court for the District of New Jersey, Merchant Mutual Insurance Co. further argues that business income losses caused by or resulting from a virus are excluded from coverage.

Benamax Ice LLC, a Westmont, N.J., has accused Merchants Mutual of breaching its policy by denying its claim for …