On May 12, 2021, New Jersey Governor Phil Murphy enacted a bill requiring insurers issuing policies covering loss or damage to property, including loss of use and occupancy and l ‘Business interruption, tell policyholders whether their policy covers virus transmission or pandemic. The disclosure must be in writing and provided to the insured by mail or email. For policies currently in force, insurers must provide disclosure within 30 days of enactment of the law.
In addition to disclosure of coverage, insurers must provide their policyholders with a general summary of common insurance clauses in policies in the event of loss of use and occupation and business interruption. This summary, to be prepared by the Department of Banking and Insurance and posted on its website when available, will include examples of common definitions of business interruption coverage, triggers and typical coverage exclusions. , as well as examples of risks that are traditionally covered. The summary may also include a disclaimer that the summary does not alter the coverage offered by the policy and is provided to the policyholder for guidance only.
Disclosure and summary are only required by “authorized” insurers.