New Jersey Legislature Introduces Bill on Business Interruption Insurance
On March 16, 2020, the New Jersey legislature introduced Bill A-3844 with the goal of alleviating the economic toll on certain insureds arising from the global COVID-19 pandemic and with the extraordinary aim of altering the terms of existing policies, potentially forcing private insurers to cover business interruption losses not covered by the existing language of polices and/or that were expressly excluded. Incredibly, the bill would also require insurers that did not write first-party business interruption coverage at all to provide such coverage. The draft bill is limited to insureds in New Jersey with fewer than 100 full-time employees (those who work 25 hours or more per week), and the forced coverage would still be subject to policy limits otherwise in place for business interruption.
The bill was pulled on March 16, 2020, and thus failed to reach a floor vote because of discussions over amending it. The bill sponsors say that the bill is still in consideration. We will continue to watch and report on the evolution of this bill.
NJ Bill A-3844