On January 30, 2019, New Jersey residents suffered a huge loss. Marcal Paper, in Elmwood Park, New Jersey on the edge of Route 80, was burned to the ground. Along with it were 80 years of family-owned business, jobs, society and an iconic sign that lit up Route 80 lost.
Marcal Paper was built in 1939 and employed over 1,000 people at a time. Due to mainly foreign competition, Marcal Paper was filed for bankruptcy protection in 2006. The iconic sign was dark until 2014 when a new company bought Marcal Paper and let the sign.
On January 30, 2019, a massive fire roughly 90% of the Marcal Paper factory resigned. Studies in the fire continue, and the cause and origin have not yet been established. It seems based on early reports that Marcal Paper will close the doors for good, at least in Elmwood Park, leading to the loss of over 500 local jobs. This is a devastating blow to society and the local economy. Furthermore, there has been no information on what the burnt down plant will be, if anything.
But with tragedy also the opportunity to learn. As a commercial property or business owner, it is imperative that you have adequate coverage for business interruptions, quota breaks, and additional cost coverage in your policy. It would benefit all commercial property and business owners in New Jersey to put down and review their policies with their agents to confirm the cover.
Business interruptions insure your company for lost income during the restoration period. Extra cost insurance covers your business for the extra costs you incur, in addition to your normal expenses, to continue operating your business while the property is being restored. Any coverage of corporate income will help those who are dependent on a company like Marcel if it gets wiped out. Any business interruption insurance extends business interruptions. It covers suppliers and customers when there is a loss for another covered property.
Something that is as simple as fire, broken pipes, storm or flood can close all or part of your business for a long time. With the right policy you should be covered. With the wrong policy you can be exposed to staggering losses or worse. So before a loss occurs, make sure you have the right coverage for your needs.
As we continue to learn more about this tragic event, we once again hope that the iconic sign shines strongly over Route 80 one day soon.