A worker at the Ocean Casino Resort in Atlantic City N.J. installs a sign indicating that slot machines will routinely be sanitized once the casino reopened a month later to prevent the spread of the coronavirus, June 3, 2020. The New Jersey Supreme Court is expected to hear arguments, Wednesday, Sept. 27, 2023, in a case involving whether insurance companies were correct in denying payouts to the casino for business losses during the state-mandated closure in 2020.
Three insurers — AIG Specialty Insurance Co., American Guarantee & Liability Insurance Co. and Interstate Fire & Casualty Co. — largely denied coverage to the casino, saying it did not suffer direct physical loss or damage because of the virus. The issue has arisen in state and federal courts around the country, including cases where payouts were denied involving a chain of California movie theaters; a Los Angeles real estate firm; a group of hotels in Pennsylvania, and a group of hotels and a law firm in New Jersey.
The casino sought payouts for losses incurred during that time under policies from the three insurers.
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