N.J. Caterer Says Insurers Breached Policy by Denying Coverage for COVID-19 Losses

TRENTON, N.J. — A New Jersey catering company and event venue has filed a proposed class action against The Hanover Insurance Group Inc. and its subsidiary, Citizens Insurance, demanding coverage for business interruption losses due to COVID-19 government closure orders.

In a July 14 complaint filed in the U.S. District Court for the District of New Jersey, Tsakos Inc. t/a Hanover Manor says the orders triggered coverage under its policy’s Business Income (And Extra Expense) Coverage Form because they caused “direct physical loss of or physical damage to property.”

Plaintiffs argue they have suffered a direct physical loss of and …