The state of New Jersey, after soliciting stakeholder feedback, has adopted a new law requiring commercial property insurers to provide their insureds with a state mandated one-page summary explaining common insurance clauses found in such policies. Insurers must use the summary created by the New Jersey Department of Banking and Insurance (DOBI) without deviation. The summary must be provided to all existing policyholders within ninety days of the date of its posting (August 16, 2021) on DOBI's website, which is November 13, 2021. The summary must also be provided to any applicant or renewal purchaser of commercial property insurance covering the loss of use and occupancy of a commercial property and business interruption in New Jersey. Insurers should not file the Summary, as all insurers will use the same summary document provided by the state.

The purpose of the summary is to provide insureds with an understanding of common aspects of commercial property coverage, including loss of business income, and in so doing to set expectations with respect to coverage. As such, the summary clarifies that business interruption insurance policies cover losses sustained due to a suspension of business where the suspension was caused by direct physical loss of or damage to property or the insured's premises, and where the loss or damage is caused by or results from a specified peril or covered cause of loss. A disclaimer states that the summary does not alter coverage provided by the policy, and is being provided as guidance and assistance in the insured's understanding of policy terms.

The background and text of the original legislation can be found on the state's legislature website: Senate Bill S3169 and Assembly Bill A4805, while a description of the summary and its full text can be found on DOBI's website here. The applicable statute is: N.J.S.A. 17:29AA-33 and 34.