Legislation that would require insurers to disclose whether certain policies have business interruption pandemic coverage passed the Senate Commerce Committee on Feb. 11, 2021. The bill (A-4805), which has passed the New Jersey Assembly unanimously, would require an authorized insurer to provide a disclosure stating whether the policy provides coverage for global virus transmission or pandemic coverage prior to issuing a new policy or renewing an existing policy.

Additionally, the Department of Banking and Insurance would be required to publish a one-page summary on its website. The summary would include:

• common insurance clauses concerning coverage for the loss of use;
• occupancy of a commercial property; and
• business interruption that may be used in a commercial insurance policy. 

Additionally, the summary would be required to include the following:

• information concerning common coverage triggers;
• examples of perils typically covered;
• a summary of common exclusions; and
• a statement that “Your policy may not cover pandemics or viruses.”

According to the legislation, the DOBI would be required to publish this summary within 90 days of bill becoming a law.

This legislation was amended in committee to apply only to authorized insurers. In addition, a sunset provision was added whereby this act would expire 30 days after the effective date of any similar federal legislation.