In a decision on a COVID-related business interruption dispute, the New Jersey Supreme Court went beyond addressing the question of whether “direct physical loss” of or “direct physical damage” to its property took place to address the argument of whether a contamination exclusion applies.
The New Jersey Supreme Court heard oral arguments in September 2023 in AC Ocean Walk LLC v. American Guarantee and Liability Insurance. The court considered whether the virus or the related executive orders caused a covered “direct physical loss of or damage” to the plaintiff’s property and, if so, whether the contamination exclusions in the policies apply.
