The New Jersey Supreme Court heard oral arguments Wednesday in a COVID-related business interruption dispute between an Atlantic City casino and its insurers, becoming the latest court to mull 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.

During the argument session, the justices acknowledged that the COVID-19 pandemic, specifically, was not foreseeable at the time the insurance policies were signed, but questioned whether the casino was a “sophisticated” policyholder that should have understood what coverage would or would not apply in the event of a viral outbreak.