Paul White (Partner-Los Angeles) told Insurance Journal earlier this month in an audio interview that if other states follow in New Jersey’s footsteps after its initial proposal of N.J. Bill A-3844 regarding business interruption insurance and the coronavirus, it could set a dangerous precedent for the insurance industry. “If the legislation proposed in New Jersey were to become an accepted template that in essence required insurers to provide coverage for losses arising from COVID-19, irrespective of the terms of the insurance contract, I believe the consequences could be devastating for the insurance industry,” Paul said. “Draconian measures that preclude an insurer from being able to rely on policy exclusions and force the industry to cover losses that were not contracted for would set a horrible precedent.”

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