Paul White (Partner-Los Angeles) commented in a March19, 2020, Insurance Journal article, “Proposed N.J. Bill Would Require Insurers to Pay COVID-19 Business Interruption Claims.” New Jersey Bill A-3844 provides a framework for businesses that suffer business interruption losses due to the COVID-19 pandemic to recover those losses from their insurer. “In essence, the proposed law would require insurers to provide coverage for business interruption losses, possibly reaching into hundreds of billions of dollars, in circumstances where relevant contracts do not cover, and expressly exclude, such losses arising from a virus,” Paul said. “Such a law on its face would appear to substantially impair the rights and obligations of the parties to such a contract in violation of Article I of the United States Constitution.”

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