On March 19, we wrote this article on New Jersey’s proposed bill in regards to forcing carriers to pay business interruption claims due to losses stemming from COVID-19 related shutdowns. Business Income, COVID-19, and New Jersey State Intervention
In less than a week, two additional states have filed similar bills. We expect other states to file similar bills; we will present a summary of those bills as they develop. So far the bills are similar in nature; they apply to smaller insureds with limited numbers of employees with coverage that already includes business interruption coverage. Insurers paying these claims will apply to the insurance department for reimbursement, and those funds will be obtained by the departments by charging carriers with assessments to raise such funds. These bills can have an enormous impact on the industry and interpretation of insurance policies.
