On May 12, 2021, New Jersey Governor Phil Murphy signed Assembly Bill 4805, requiring insurance companies to provide clear and explicit explanations of when business interruption coverage applies and under what circumstances. The bill instructs the New Jersey Department of Banking and Insurance to draft a one-page summary of common clauses approved for use in commercial property and business interruption policies. The language must be simple and explain common events that trigger coverage as well as typical exclusions.
Furthermore, the bill requires insurers to notify current business interruption policyholders if their policy covers losses related to a virus within 30 days of enactment.
For more information on Assembly Bill 4805, or any other questions regarding insurance regulators’ responses to COVID-19, please contact Westmont Associates, Inc.