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New Jersey Law Requires Insurers to State Whether Business Interruption Policies Cover Global Virus Transmission, Pandemic Coverage | White and Williams LLP


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On May 12, 2021, New Jersey Governor Phil Murphy signed into law a bill requiring insurers to go on record as to whether their policies, which provide coverage for the loss of use and occupancy and business interruption, cover global virus transmission or pandemics. The law first requires an insurer to disclose to new and renewing insureds whether the policy provides such coverage. The Commissioner of Banking and Insurance prescribes the form and manner of providing this notice for this first provision. The law also requires any insurer who has in force such a policy to so inform its insured in writing (via mail or electronic means) within 30 days of the date of enactment. ....

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Examining COVID-19-Related Insurance Litigation Trends


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Almost 1,500 lawsuits have been filed by policyholders against insurers, seeking to resolve disputes around insurance coverage for COVID-19-related business losses.
For those unfamiliar with insurance litigation trends, it’s important to put the scale of this into perspective. The average hurricane will result in about 50 to 100 cases being filed in the first year; from April till August 2020 we saw the same quantity of cases being filed
each week for COVID-19-related losses.
So far, rulings have been made overwhelming in the favor of insurers, at a rate of approximately 75%. However, there have been some significant rulings in favor of policyholders over the last few months which should cause insurers pause for thought. ....

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Class Actions Quarterly Update: How Have Plaintiffs' Class Actions Suing For Coverage for Business Interruptions From Covid-19 Fared Thus Far? | Arent Fox


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Our initial alert highlighted various hospitality and service industry businesses suing their insurers to recover for losses arising out of closure and stay-at-home (Civil Authority) orders. Since then, thousands more individual and class action coverage actions have been filed seeking business interruption coverage as a result of Covid-19. This article assesses how these new actions have fared thus far.
 
The class action cases generally allege one of two theories to support claims for business income losses. Many of the class plaintiffs have alleged that the forced closure of business operations by state and local governments (civil authorities) was sufficient to support a claim, without a showing of damage to covered property. Most of these claims have been decided in favor of the insurer defendants, resulting in dismissals of the initial complaints.  ....

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