Requires that definition of occurrence in certain property damage liability insurance policies include coverage for faulty workmanship.
Impact
The introduction of A1075 is anticipated to significantly impact the insurance market for contractors in New Jersey. By standardizing the definition of 'occurrence' to explicitly include faulty workmanship, it aims to eliminate the ambiguity that has previously led to varied interpretations in court rulings. This bill seeks to assure construction professionals that they will have the necessary insurance coverage for claims arising from their workmanship, thereby fostering greater confidence in their dealings and agreements.
Summary
Assembly Bill A1075 requires that the definition of 'occurrence' in certain commercial liability insurance policies includes coverage for faulty workmanship. This clarification aims to provide contractors and other construction professionals with more certainty regarding their insurance coverage for damages that result from their work. The bill mandates that, effective the 90th day following enactment, insurance policies cannot be delivered, issued, executed, or renewed unless they explicitly include this definition, which also encompasses accidents and continuous exposure to harmful conditions.
Contention
Despite its clear objectives, A1075 may face opposition from some insurance providers and industry stakeholders who might argue that including faulty workmanship under 'occurrence' could lead to increased liability for insurers. They may express concerns about potential rises in insurance costs or changes in underwriting practices that could follow the implementation of this bill. Critics could also highlight the risk that these types of claims may still lead to disputes over what constitutes an 'accident' versus straightforward faults in workmanship.
Permits municipalities to place lien on fire-damaged property's insurance proceeds in certain instances and requires fire and explosion insurance coverage for certain individuals.
Permits municipalities to place lien on fire-damaged property's insurance proceeds in certain instances and requires fire and explosion insurance coverage for certain individuals.
Owners of firearms required to have liability insurance, and homeowners' and tenants' policies required to include liability coverage for accidental discharge of firearms.
Requires that applicants for a retail liquor license in the town of Westerly acquire commercial, general-liability, liquor liability and property damage insurance coverage in the amount of $300,000.
Revises personal injury protection coverage for basic automobile insurance policies from $15,000 to $20,000 and requires $50,000 minimum personal injury protection coverage for standard automobile liability insurance policies.
Requires MVC to verify certain information concerning commercial learner's permit and commercial driver license applicants and holders to ensure persons illegally in the State do not obtain or hold such permits and licenses.