Travelers’ Unit Achieves Multiple Business Interruption Wins

September 24, 2021 in Client Alerts, Firm News

The District of New Jersey recently issued multiple decisions concluding that an insurance policy’s virus exclusions barred a policyholders’ coverage of losses arising from the COVID-19 pandemic, handing multiple victories to Walsh client, Travelers’ subsidiary Charter Oak Fire Insurance Co.

On Wednesday, U.S. District Judge Michael A. Shipp cited the exclusion in dismissing a steel businesses’ suit against Travelers’ Charter Oak, two days after U.S. District Judge Esther Salas granted Charter Oak’s motion to dismiss a proposed class action from J.G. Optical Inc. with respect to the financial blow it suffered by ceasing operations as a result of government restrictions aimed at curbing the spread of COVID-19 in the Garden State.

The rulings add to Travelers’ winning record in New Jersey federal cases where judges have declared that virus exclusions precluded coverage for pandemic-related losses, including Carpe Diem Spa, Inc. v. Travelers, No. 20-cv-14860-AET-TJB and Chester C. Chianese DDS, LLC v. Travelers, et al., No. 20-cv-05702-MAS-ZNQ.

Walsh attorneys Liza M. Walsh and William T. Walsh, Jr., and co-counsel Stephen Goldman, Wystan Ackerman and Denis O’Malley of Robinson & Cole, represented Travelers and Charter Oak.

More details on this case may be found on Law 360: