Restaurant’s Bid for Insurance Coverage of Covid-19 Loss Tossed

Cumberland Mutual Fire Insurance Co. convinced a judge to dismiss a New Jersey restaurant operator’s lawsuit over denied coverage for claims tied to Covid-19, after arguing that the policy excludes losses from a virus.

“While there is no doubt that the COVID-19 pandemic severely affected Plaintiff’s restaurant, Defendant cannot be liable to provide coverage when the Virus Exclusion plainly bars Plaintiff’s claim,” Judge Robert B. Kugler of U.S. District Court for the District of New Jersey said in an opinion Thursday.

The decision adds to a growing number of recent pro-insurer rulings in disputes over businesses’ pandemic losses.

Millburn, N.J.-based ...