STORY FROM: COVID-19 Litigation Report

Insurer Seeks Dismissal of N.J. Salon’s COVID-19 Coverage Action

CAMDEN, N.J. — An insurer and its corporate parent moved to dismiss a New Jersey salon’s lawsuit demanding coverage for COVID-19-related business interruption losses, arguing that it did not sustain “direct physical loss or damage” as required by the policy.

In a July 28 motion filed in the U.S. District Court for the District of New Jersey, Fitchburg Mutual Insurance Co. and The Norfolk & Dedham Group further contend that the policy’s virus exclusion bars coverage because the alleged loss was caused at least indirectly by a virus.

Dezine Six LLC d/b/a Cosmo Bleu sued defendants on June 30, contending ...

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