Every Day We Receive Risk Management & Coverage Questions
Art Displays? Fundraisers? Antique Fire Trucks? Is it Covered? Craft Fairs? Recreation Programs?
Volunteers? Prison Labor? Garden Club? Are They Covered? Sports Teams? Recreation Programs? Community Service Workers? Police Chaplains?
Many Times we Must Clarify the Question: Covered for what? Or Ask for More Details: What is the activity? How was it created? How is it funded? Before We Can Answer
The Answer is not Always Black & White: Some entities are covered for Liability but not for WC. Some entities are not covered but the municipality is covered. A simple Yes or No answer cannot always be given. And we often reach out to other professionals for guidance
Take The Case of Volunteers We frequently receive questions about coverage for volunteers. Coverage for volunteers can vary widely.
Employee or Volunteer? Employee Performs a service for an employer for financial consideration. N.J.S.A. 34:15-36 Volunteer Offers services without receiving payment or expectation of payment. Veit v. Courier Post Newspapers
Types of Volunteers Volunteer Fire, First Aid or Rescue Special, Reserve or Auxiliary Police Elected Officials (non-compensated) Recreation Committees Special events All other volunteers Which ones are covered?
Liability Coverage - Municipality General Liability Protects municipality if sued because volunteer injures someone or causes property damage. Protects municipality if volunteer sues municipality because they are injured. Automobile Liability Protects municipality if sued because volunteer hurts someone or causes property damage while operating any auto. Municipal employees and officials are covered as part of the municipality.
Liability Coverage - Volunteer General Liability Volunteer is covered if sued because they injure someone or cause property damage while acting as your volunteer. Auto Liability Volunteer is covered by JIF if sued because volunteer hurts someone or causes property damage while operating the municipality s auto, not volunteer s auto. (Their auto policy would protect them while using their auto.)
Auto Coverage Emergency Response Volunteer Physical Damage Limited Auto Physical Damage Coverage for Vehicles Owned By Others May Apply.* Auto Liability Volunteer is covered by JIF while using volunteers own vehicle while responding to emergency in excess of volunteer s personal auto policy. *See BURLCO JIF Specific Policy
Workers Compensation Coverage New Jersey law covers certain volunteers Volunteer Fire, First Aid or Rescue Special, Reserve or Auxiliary Police Non-compensated Elected Officials All other volunteers are not covered by Workers Compensation
We Go Beyond Coverage Are there applicable statutes that govern the activity? Issues regarding safety Risk management concerns Are there contractual issues to consider? And we are careful not to give legal advice
About Disclaimers We are not attorneys: I would like to emphasize that the discussion set forth above is only an insurance/risk management perspective and is NOT legal advice. We do not provide legal advice and I highly recommend that you seek the advice of legal counsel in order to become fully apprised of the legal implications related to these issues. All comments made regarding contract or specification review is limited to an insurance/ risk management perspective and is not legal advice. We recommend that you always discuss these issues with legal counsel before moving forward.
About Disclaimers Coverage is fact sensitive: Any discussion regarding coverage is designed to make the reader aware of the terms and conditions of the applicable coverage document, which may apply to the situation described. All determinations of coverage are subject to the facts of the actual case, the coverage document itself, the determination of the TPA, and the JIF itself.
Some Typical Questions
My Volunteer Fire Department is Having a Coin Drop Are we covered?
Yes Volunteer firemen are covered for both Workers Comp and Liability for fundraising activities Remember: But NJ Statute dictates how Coin Drops are to be approved and conducted If you are on a County/State road you will need their approval Be Safe Traffic calming devices and Safety Vests! There is a Safety Bulletin on this topic.
My Town will be Using Community Service Workers Are they covered under our insurance?
Yes and No Town will be covered for liability if sued* Workers must be assigned by the courts Workers not covered by WC IMPORTANT! Establish rules Provide training Provide supervision* Provide personal protective equipment Obtain Accident Policy * Town has immunities
My Volunteer Fire Department has an Antique Fire Truck Is it covered?
Yes BUT Only for Actual Cash Value Get it appraised by a licensed Appraiser to establish real value Consider purchasing a separate Physical Damage policy for this vehicle
My Town Hall will be Displaying an Art Collection Is the art work covered if damaged?
Yes BUT A schedule of the art work and its appraised value must be on file with the Executive Director s office prior to coverage taking effect. Specialty pieces (antiques, etc.) should have separate appraisals completed and filed with the Executive Director and/or Fund Underwriter prior to displaying the articles. No one wants to argue over the value after a loss has occurred.
My Volunteer Fire Department Wants to Create a Junior Firefighter Program Will it be covered?
Yes JIF Provides Liability Coverage for program participants Title 34 Workers Compensation Must comply with 40A: 14-95 Appropriate training and supervision Limited activities Title 40A: 14-95 Formed by ordinance Parental permission Rules and regulations (1) attending meetings of the Junior Firemen's Auxiliary; (2) receiving instruction; (3) participating in training that does not involve fire, smoke, toxic or noxious gas, or hazardous materials or substances; and (4) observing firefighting activities, while under supervision. Safety Director s Bulletin Be careful with minors!
Our Environmental Commission is Having a Clean Up Day Are the Volunteers covered?
Yes & No The JIF will respond to any liability claim brought against the Commission or a Volunteer arising from the event There is no workers compensation coverage for these volunteers Establish safety rules Consider volunteer accident policy
Managing the Risk of Volunteers Provide volunteers with guidelines, instructions, training, etc. Establish accident/incident reporting guidelines. Provide safety equipment. Don t assign dangerous tasks or allow volunteers to use dangerous equipment. Be careful with minors. - Child Labor Laws!
Managing the Risk of Volunteers Identify all volunteer organizations. Officially appoint all volunteer organizations. Maintain current rosters. Obtain signed participation agreement including a waiver. Secure permission slips for minors. Screen volunteers (Especially those working with children) RESOLUTION Manage risk of inappropriate behavior
What If They Get Hurt? Establish procedures Getting aid Reporting accident Documenting what happened Secure Volunteer Accident Insurance
Volunteer Accident Insurance Comes in all shapes and sizes: Accident and Health Disability Life Applies to every type of activity: Youth Groups/Sports Team coaches Any Type of Volunteer Activity
Why Offer the Coverage? Today, many individuals do not have medical insurance coverage Should a volunteer have an accident, they will probably look to the municipality for reimbursement If the volunteers medical expenses are paid, the municipality is less likely to be sued
My Volunteer Ambulance Squad Started Billing for Service Are they still covered?
Yes They will still be covered for Workers Compensation and Liability Special consideration must be given if they are paid* * Please contact the Executive Director s office with specific circumstances
Ambulance Non-Profits! Becoming more prevalent Not a municipal entity Not municipal employees JIF Provides No Coverage
My Fire District Would like to Join the JIF Can they?
No The BURLCO JIF does allow Fire Districts to be insured through a JIF Member FIRST Responder JIF www.firstjif.org
My Police Department just Started a K-9 Unit Is it covered?
Yes and NO Liability coverage for the actions of the K-9 Unit and the K-9 Officer will be covered for Workers Comp No coverage for injuries to the dog! Consider a separate policy for injuries sustained by the dog* Replacement of the dog should it be killed in the line of duty $1,000 Deductible (Property claim) * MEL Coverage Committee is studying coverage.
There is an Economic Development Authority in my Town Can we add them to our insurance coverage?
Maybe Coverage is Dependent on several factors: How was entity created - Ordinance of Governing Body? Does the Governing Body appoint members? Does the Governing Body fund the entity? Does the Governing Body have VETO power over the actions of the entity? If the answer to any of these Questions is NO Coverage is not likely
Covered Quasi-Municipal Organizations Group I Public Safety Associations - Volunteer Fire Cos. - Police Reserves Group II Vol. Ambulance Corps & Fire Districts - First Aid Squads Only Not part of the District JIF May Provide Coverage Both Liability and WC
Not Covered Quasi-Municipal Organizations Group III All other (Non-Athletic) - Library Boards - Garden Clubs - Historical Committees Group IV All other (Athletic) - Athletic Associations - Baseball - Soccer - Football - Cheerleading Lack of Title 59 Immunities! JIF Provides No Coverage
My Police Department is Conducting a Ride Along with the Elected Officials Are they covered?
YES Liability and Workers Comp is provided All Medical covered, but.. Salary continuation is limited to salary as an elected official, NOT their full time position!
My Governing Body wants to appoint a Police Chaplain Are they covered?
YES If appointed pursuant to NJSA 40A:14-141 Liability and Workers Comp is provided If uncompensated likely to qualify for maximum wage replacement as emergency responder Consider paying a small annual stipend to eliminate this possibility
What about an MOU with other towns? The town appointing the chaplain is responsible for the workers compensation coverage Liability coverage varies. Should lie with the controlling entity * * Fact sensitive
My Police Chief wants to Install a Gym for his Officers Is this OK?
Yes, but BEWARE! Officers should only work out on their own time never while on duty COMP CLAIM! Officers should sign a waiver that they understand the gym is for their own enjoyment and they are not required to use the facility All gym equipment should be inspected regularly to ensure all in good working order maintain log Broken equipment should be taken out of service immediately post signs!
My Town Wants to Create a Shade Tree Commission Will this give us more or less liability?
Less, but Your Commission must be in compliance with the N.J. Community Forestry Act The Forestry Act provides immunity to a public entity providing: It has an approved comprehensive community forestry plan The shade tree commission members have successfully completed a training skills program
My Town Created a Community Emergency Response Team Are members covered?
Yes If CERT established by resolution CERT members have completed training and are rostered The CERT roster is approved by resolution Both Liability AND Workers Compensation
What about a multiple municipality CERT? An inter-local agreement should be in place outlining responsibilities & protocols CERT members are covered for workers compensation by the town in which they are rostered Liability coverage varies. Should lie with the controlling entity, but JIF will respond if necessary * * Fact sensitive
Members of my Police Department want to Join a County Swat Team Are they covered?
Yes Your personnel (employee or Title 34 volunteer) covered by you for WC Liability coverage varies. Should lie with the controlling entity (i.e. County) JIF will provide coverage if controlling entity denies coverage Responsibilities should be spelled out in the inter-local agreement Lock down the contract language and obtain Certificates!
My Solicitor Feels he is Covered by the Municipality for any Work Performed on our Behalf Are we covering them?
NO! Attorney, Engineer, Architect, etc. Not covered by the JIF You are paying them for their expertise They should indemnify you!* Review all contracts! *If you agree to indemnify them, you may be stuck with the bill!
My Code Enforcement Officer Wants Us To Purchase a Drone Are we covered?
Yes Under Certain Conditions Compliance with (FAA) regulations, certifications, rules, procedures, policies and standards Special exclusions apply to the UAS exposure: 1. Physical contact with any other aircraft (including hot air balloons and blimps) 2. Existence or use of weapons and ammunition attached to or incorporated within any UAS, including as part of the payload 3. Unmanned aircraft, including its payload, in excess of 55 pounds 4. The operator not holding a remote pilot airman certificate or the operator not being under the direct supervision of a person who does hold a remote pilot certificate Refer to MEL Coverage Bulletin 18-27 for complete details!
My Mayor Wants to Install Video Cameras In/Outside the Municipal Building * Are we covered? *OPRA considerations
Yes Consider signs notifying members of the public they are under video surveillance* Security inside of municipal building Bulletproof glass Panic buttons Restrict public access to employees *OPRA considerations
My Governing Body is Considering a Dog Park JIF will respond to claims on members behalf Put rules & regulations in place Post signs with rules
TULIP: Use of Municipal Facilities When is it necessary? Casual use vs. more formal Residents doing fitness together vs. graduation party Residents vs. non-residents Boro Senior Center If rented out to seniors for a function? Bingo? How do we determine who needs TULIP?
When In Doubt Consult with your Risk Management Consultant Run it past your solicitor Submit question in writing Chances are we ve answered a similar one previously The only dumb question is the one you don t ask!
Questions?