On May 12, 2021, New Jersey Governor Phil Murphy signed into law a bill requiring insurers issuing policies covering loss or damage to property, including the loss of use and occupancy and business interruption, to provide their insureds with a general summary of common insurance clauses in policies for loss of use and occupancy and business interruption. The summary will be developed by the Department of Banking and Insurance through a “public stakeholder process” and will be posted on the Department’s website within 90 days of the bill’s enactment. Insurers must provide the summary to their insureds within 90 days of its posting on the Department’s website.
The summary will include examples of common definitions of business interruption coverage, typical coverage triggers and exclusions, and examples of perils that are traditionally covered. The summary may also include a disclaimer that the summary does not alter the coverage afforded by the policy and is being provided to the policyholder as guidance only
The summary is required by “authorized” insurers only.
The legislation can be found on the New Jersey state legislature’s website at https://www.njleg.state.nj.us/bills/BillView.asp?BillNumber=S3169