Sporting Goods Store Says COVID-19 Closure Orders Caused ‘Physical Loss or Damage'

CAMDEN, N.J. — A sporting goods apparel store has sued Liberty Mutual Insurance Co. and West American Insurance Co., demanding coverage for business interruption losses arising from the COVID-19 pandemic and related government closure orders.

In a complaint removed to the U.S. District Court for the District of New Jersey on Sept. 11, Metuchen Center Inc. contends that it sustained “loss or damage” and “physical loss or physical damage” to its insured property, triggering coverage under its policy.

On March 9, New Jersey Governor Philip D. Murphy declared a State of Emergency and a Public Health Emergency throughout New Jersey. …