N.J. Health Club’s COVID-19 Losses Not Covered, Federal Judge Rules

CAMDEN, N.J. — A New Jersey federal judge has awarded Twin City Fire Insurance Co. judgment on the pleadings in a health club’s COVID-19 coverage action, finding the policy’s virus exclusion applies because the losses arise from government closure orders issued in response to the pandemic.

In a June 21 order, Judge Noel Hillman of the U.S. District Court for the District of New Jersey found plaintiffs failed to show how the plain language of the exclusion can be interpreted as applying only when a virus is physically present at a property.

Arrowhead Health & Racquet Club, LLC and Mandalap …