Virus exclusion clause by insurance companies leaves some NJ businesses in the dust

Some business owners across the state are furious after finding out they won't be receiving money from their insurance companies after buying expensive policies they thought covered all unexpected interruptions, including virus outbreaks.

News 12 Staff

Apr 19, 2020, 2:25 AM

Updated 1,459 days ago

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Some business owners across the state are furious after finding out they won't be receiving money from their insurance companies after buying expensive policies they thought covered all unexpected interruptions, including virus outbreaks.
Harrison Avenue Tavern owner Vincent Henrich says ever since he opened the doors to his business 25 years ago, he has been buying business interruption insurance – costing him $10,000 a year.
When Gov. Phil Murphy announced on March 16 that bars and restaurants must close, he thought he would receive money from his insurance company to help pay his six employees.
Instead, he says he was told that wouldn't be the case because of a clause in the contract excluding virus outbreaks from the coverage.
He was forced to temporarily lay-off his employees.
“It's a vicious feeling. It's terrible,” he told News 12. “Some of my employees have been with me for a long time.”
New Jersey is among the first states to introduce legislation that would require business interruption insurers to provide coverage during the coronavirus crisis despite the virus exclusion in their policies. The bill is currently on the floor of the Legislature.
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