Personal Injury Blog

New Jersey Business Interruption Claims Attorney

Helping New Jersey Businesses Navigate the Business Interruption Claims Process

There is no question that COVID-19 has disrupted – and continues to disrupt – businesses located throughout the United States. The pandemic has raged across the world, shuttered many businesses, and caused significant (and sometimes irreparable) financial harm to many others. This includes businesses (and especially small businesses) within the State of New Jersey.

Many small businesses in New Jersey have attempted to obtain forgivable loans through the Paycheck Protection Program (PPP). Other businesses have recently looked to their insurance policies to cover the financial losses that they have incurred as a direct result of disease-related interruptions to their businesses. Bills are currently pending in the New Jersey legislature that would provide for these financial gaps.

To learn more about potentially making an insurance claim for COVID-19-related business interruption in New Jersey, you should contact the business interruption claims attorneys at Leonard Legal Group as soon as possible.

Requirements for Obtaining Business Interruption Insurance Coverage

Under a pending New Jersey bill, companies may be eligible for business interruption losses resulting from COVID-19 if the following conditions are satisfied:

  • The coverage is specifically for an interruption to the company’s business that results from a “pandemic” or “global virus transmission,” as provided by the State of Emergency that was declared by the governor regarding the COVID-19 pandemic, as well as the current public health emergency
  • The coverage is specifically intended for an insurance policy that was issued to a company (the insured) that employs under one hundred eligible employees in New Jersey, and that is in effect on the date when the Act is passed
  • The coverage must be used to indemnify the insured’s losses that were incurred during the period that the above-referenced state of emergency was in effect – and subject to the limits of the applicable insurance policy

In addition, under this bill, the companies who pay out business interruption claims pursuant to a valid insurance policy may be eligible to seek reimbursement from the New Jersey Department of Banking and Insurance. Of course, many insurance companies have voiced their opposition to this bill and are requesting that certain legal considerations and exclusions apply. In cases where insurance companies choose to deny these business interruption claims, lawsuits and litigation will likely ensue between the affected business and the insurer.  Even if this proposed legislation does not become law you may still be able to pursue a claim against your insurance company to recover the benefits you purchased.

Speak with a New Jersey Business Interruption Claims Lawyer About Your Options Today

COVID-19 has led to significant business losses throughout the State of New Jersey, most especially with small businesses. If you purchased business interruption insurance, you may have a claim.  We will need to review your insurance policy to determine if we can help you. If your business has suffered an interruption due to the COVID-19 crisis, the experienced team of attorneys at Leonard Legal Group can explore all of your legal options with you. We can also help you select the option that will best serve your needs, as well as the needs of your business. To schedule a free consultation and case evaluation with a New Jersey business interruption claims attorney, please contact us online today.