Coverage Q&A
Dams
The MEL provides certain Property (1st party) and Liability (3rd party) coverages for Dams.
You’ll find the Property coverage for dams named “Bridges and Dams PD & TE Combined,” subject to a $10,000,000 sublimit. Coverage is provided for Dams attached to a scheduled location; however, the perils of Earthquake, Flood (including Storm Surge) and Named Storm are excluded.
As respects Liability coverage, there are varying sublimits depending on hazard classification of the dam, which is defined by NJAC 7:20-1.8:
Class 1 – High Hazard: Dams where the failure of such may cause the probable loss of life or extensive property damage. Usually in more populated suburban and urban areas.
Class 2 – Significant Hazard: Dams where the failure of such may cause significant damage to property and project operation, but loss of human life is not envisioned. Usually in more rural or agricultural areas.
Class 3 – Low Hazard: Dams where the failure of such would cause loss of the dam itself, but little or no additional damage to other property.
Class 4 – Small Dams: Dams which impound less than 15 acres/feet of water to the top of the dam, has less than 15 feet height-of-dam and which has a drainage area above the dam of 150 acres or less.
Liability coverage extends to third party bodily injury or property damage arising out of the failure of a dam for which the Member is responsible, including downstream coverage, up to:
- Class III or Class IV: $5,000,000;
- Class I or Class II: $2,000,000; or
- Class III or Class IV with a Class I or Class II: $2,000,000.
Fire Trucks
Fire Trucks receive Automobile Physical Damage coverage, just like any other public road-type vehicle, subject to a sublimit of $15,000,000, titled “Vehicles”. The coverage provide physical damage coverage only, no time element. Further, Fire Trucks receive one of four valuations:
Antique Fire Trucks
a. Scheduled: Lesser of Replacement Cost or Scheduled Value
b. Not Scheduled: Lesser of Actual Cash Value, repair or replace
Fire Trucks 10 Years Old or Less: Replacement Cost
Fire Trucks Over 10 Years Old: Lesser of Replacement Cost or Scheduled Value, but no less than Actual Cash Value.
Notaries
You may know from the standard insurance marketplace, Notaries need Professional Liability or Errors & Omissions insurance for their practice. The membership typically have notaries on staff performing notary duties for the members. In the MEL program, the professional liability/E&O coverage for notaries is included in the Public Officials Liability coverage. Please note, the notary must still meet the definition of “Insured” in order to receive coverage, meaning they are employed by and performing duties at the direction of the member entity.
Liquor Liability
While liquor liability is excluded from most General Liability policies, a carveback of coverage is sometimes provided for the giving, selling and serving of alcohol as long as it is not the Insureds primary business operation. The MEL provides that broad carveback to its members, extending liquor liability coverage for functions usual or common to the member entity; however, any for-profit catering operations of the member entity are excluded, such as owned by certain police or fire units.
CERT – Community Emergency Response Teams
While CERT teams enjoy many immunities for their emergency response operations, the question of Workers’ Compensation always comes up. The MEL extends Workers’ Compensation coverage to CERT teams if the following requirements are met:
- Established by resolution or ordinance of the Governing Body;
- Members have completed any required certification course;
- Members are actively rostered;
- Roster is approved by resolution of the governing body; and
- Injury occurred while acting in the scope of member’s duties with the team and at the direction of the Office of Emergency Management (OEM).
Shared Services
Please remember Shared Services are still services being provided from one entity to another, and can create additional liability. As such, appropriate insurance and indemnification should be requested, including
Errors & Omissions Liability/Professional Liability coverage for Financial Injury caused to the receiving party.
Online Vehicle Registration with NJMVC
When asked for the 3-digit insurer code, use “000”, which is the code for self-insureds. This is the appropriate code for JIFs.
If you have any questions, please contact your Risk Management Consultant, JIF Executive Director or the Underwriting Manager.
NOTE: These descriptions are a general discussion of the coverage and limits provided by the FUND. However, the actual terms and conditions are defined in the policy document and all issues shall be decided based on the policy document.