NJ Supreme Court Denies Ocean Casino's COVID Business Interruption Claim

Court rules presence of virus does not constitute 'direct physical loss or damage' for insurance payout.

The New Jersey Supreme Court ruled that the Ocean Casino Resort in Atlantic City is not entitled to payouts from business interruption insurance for losses during the COVID-19 outbreak.
The court determined that the presence of the virus did not constitute the kind of 'direct physical loss or damage' required for such a payout.
The case involved the Ocean Casino Resort's claims against three insurance companies — AIG Specialty Insurance Co., American Guarantee & Liability Insurance Co. and Interstate Fire & Casualty Co.
The casino had sued and initially defeated an attempt by the insurers to dismiss the case, but that decision was reversed by an appellate court.
The ruling is in line with similar decisions reached in state and federal courts around the country.