Casino Virus Win Struck Down On Appeal

New Jersey’s Ocean Casino Resort had succeeded in defeating its insurer's motion to dismiss in the trial court, but a state appellate court determined that the case should have been dismissed.

Zurich, AIG, and Allianz had up to $50 million in exposure in the suit. The court held that coverage was not triggered due to the requirement of “physical loss or damage” to occur in order to recover lost business income, finding that the presence of a virus does not cause physical loss or damage. The court also held that the policies in question contained unambiguous and enforceable contamination exclusions that would serve to remove coverage if it were triggered. Read more.

This article was submitted by RJ Proie. If you would like to submit content or write an article for the Insurance Coverage Section, please email Deneen Fitzgerald at dfitzgerald@indybar.org.

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