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Bill

Bill

S 968

Requires insurers offering commercial general liability insurance policies to provide notification of exclusion for communicable disease.

2026-2027 Regular Session

New Jersey requires commercial liability insurers to explicitly notify policyholders about communicable disease exclusions to increase coverage transparency for businesses.

Introduced in the Senate, Referred to Senate Commerce Committee
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WeVote Research Nonpartisan
Bill Summary · S 968

Legislative bill overview

S 968 mandates that insurance companies offering commercial general liability (CGL) policies in New Jersey must explicitly notify policyholders about any exclusions related to communicable diseases. The notification requirement aims to ensure businesses are aware of coverage gaps for disease-related claims before or at the time of policy issuance.

Why is this important

Many businesses discovered during the COVID-19 pandemic that their general liability policies excluded coverage for communicable disease losses, creating significant financial hardship. This bill addresses that transparency gap by requiring insurers to clearly disclose disease exclusions upfront, allowing business owners to make informed purchasing decisions and potentially seek supplemental coverage if needed.

Potential points of contention

  • Insurance industry pushback: Insurers may argue the requirement increases administrative costs and that exclusions are already disclosed in policy documents, making separate notification redundant
  • Definition ambiguity: The bill may need clarification on what constitutes adequate notification, what specific diseases must be disclosed, and whether partial exclusions require notification
  • Market implications: Mandatory disclosure could increase insurance costs or reduce availability if insurers face higher claims or administrative burdens, potentially harming small businesses most dependent on affordable CGL coverage

Compiled from official sources — confirm details with the bill’s official record.

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