Municipality Switches To New Insurance Carrier

Municipality Switches To New Insurance Carrierthumbnail
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Published: December 14, 2017 @ 6:00 PM EST

After years of the municipality using New Jersey Intergovernmental Insurance Fund (NJiiF), the governing body approved a new insurance carrier – Garden State Municipal Joint Insurance Fund (GSMJIF) – at the November 16th Mayor & Council meeting.

NJiiF was used to determine issues that ranged from workers’ compensation to advice on the Kneeling Soldier Memorial to other lawsuits and litigious action that is brought against the municipality. In 2017 the borough paid NJiiF $802,118 to provide coverage for those services.

This year, the municipality gave notice that it might be thinking of switching carriers. The premium that NJiiF quoted Roselle Park in its 2018-19 proposal was $762,111 which is a 5% reduction.

A quote provided by GSMJIF was $639,352. This amount is $162,766 (or 20%) less than what was paid this year to NJiiF. Even with the reduction in premiums proposed by NJiiF, the new carrier is $122,659 less.

Along with the lower upfront cost, a review of both proposals appears to show that every deductible quote by GSMJIF is the same or less than what NJiiF was offering. Also, the General Liability limits – the amount that is paid out to the municipality – are $5,000,000 higher with GSMJIF.

At the November 16th municipal meeting, Borough Clerk Andrew Casais stated, “The policy limit is higher and the deductibles are lower. The coverage is equal to or better than [NJiiF] in every situation.”

The annual assessment, or premium, paid to GSMJIF will be due in two installments on January 1st – the date that coverage begins – and August 1st. The agreement is for an initial period of three years and will end in 2020.

Copies of both insurance carrier’s propsals along with the GSMJIF Indemnification & Trust Agreement are available below for review:


Download NJiiF 2018 Proposal for Roselle Park


Download GSMJIF 2018 Proposal for Roselle Park


Download GSMJIF I&T Agreement with Roselle Park