Last week, we reported that the New Jersey General Assembly passed a bill that would force property insurers to cover certain business interruption losses arising from COVID-19. The bill presented a lifeline to small businesses in New Jersey that are being racked by the economic fallout stemming from COVID-19. Before reaching the New Jersey Senate, however, the bill was pulled from consideration with little explanation. The bill’s sponsor, Assemblyman Roy Freiman, D-16th District, reportedly stated that, in lieu of the legislation, insurers would be given the opportunity to provide coverage, or not, and have their reputation judged accordingly. Assemblyman Freiman’s office has also reportedly said that the bill was pulled so that further discussions with representatives of insurers could be had. Michelle Timoni, Chief of Staff for Assemblyman Freiman, explained that this would “give companies the opportunity to come forward with their own plans to proactively address the issue — and we want to allow them a few days to do so.”
