In March 2020, New Jersey Governor Phil Murphy issued an executive order mandating the closure of "entertainment centers, including but not limited to, movie theaters, performing arts centers, other concert venues, and nightclubs" in response to the coronavirus pandemic. (Credit: Photocreo Bednarek/Adobe Stock)
A New Jersey district court awarded summary judgment to an insurance company in a case involving communicable disease business income disruption coverage and the number of locations involved. The case is Count Basie Theatre Inc. v. Zurich Am. Ins. Co., 2024 U.S. Dist. LEXIS 95978 (D.N.J. 2024). Please note that this case is unpublished and therefore has limited precedential value.
Count Basie's is a nonprofit arts organization based in New Jersey. The organization had a commercial property policy with Zurich that covered three premises: a theatre, a music conservatory, and two surface parking lots. The policy also included a "Historic Properties Additional Coverages" section that provided coverage for "Communicable Disease Business Income." This additional coverage would apply to Count Basie's business income in the event that the three premises were required to shut down due to "an order of an authorized public health official or governmental authority…"
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