Virus Exclusion Applies to Ice Cream Shop Chain’s Losses, N.J. Federal Judge Rules

TRENTON, N.J. — A virus exclusion bars the owner of a chain of ice cream stores from collecting insurance proceeds from Twin City Fire Insurance Co. for its COVID-19 business interruption losses, a New Jersey federal judge has ruled.

In a July 19 order, Chief Judge Freda Wolfson of the U.S. District Court for the District of New Jersey found the exclusion clearly applies to the alleged losses and that coverage under the policy was not illusory.

Sweetberry Holdings LLC owns and operates ice cream stores in New Jersey, Florida and Illinois. Thirteen of its locations were covered under a …