Chubb Unit Beats Virus Coverage Suit From NJ Apparel Biz

By Bill Wichert (February 23, 2022, 8:19 PM EST) -- A New Jersey state judge has tossed an apparel company's suit seeking to have a Chubb unit cover its losses arising from the coronavirus outbreak, saying the alleged presence of COVID-19 at its locations does not constitute the "direct physical loss or damage" to property needed to trigger coverage.

Superior Court Judge Rachelle Lea Harz on Tuesday granted Federal Insurance Co.'s bid to dismiss the suit from GK Trading LLC, which does business as Apparel Solutions and makes and distributes women's clothing and accessories. The business alleged it suffered property damage since COVID-19 attached to surfaces at its premises.

The judge...

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