Chubb Unit Beats NJ Restaurant's COVID Coverage Suit

By Melissa Angell (August 26, 2021, 10:02 PM EDT) -- A New Jersey federal judge on Thursday ruled that an Italian restaurant is not entitled to coverage from a Chubb insurance unit for pandemic-related business interruption losses, finding that a virus exclusion in the restaurant's insurance policy bars its case.

In a 12-page opinion granting the insurer's judgment on the pleadings, U.S. District Judge Kevin McNulty determined that the virus exclusion in Indemnity Insurance Company of North America's policy forecloses Beniak Enterprises Inc.'s claims that it incurred losses due to government-mandated closure orders.

"Beniak ceased its operations in compliance with governmental COVID-based restrictions," the judge wrote in his order. "But for...

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