Mayor Mark A. Smith announced that the City of Bayonne has joined the New Jersey Intergovernmental Insurance Fund (NJIIF). The fund will provide coverage for the municipality’s property and casualty insurance. Mayor Smith said, “For many years, Bayonne was self-insured, and covered property and casualty losses from its own independent funds. By switching to coverage from the New Jersey Governmental Insurance Fund, we will have more economical property and casualty insurance coverage. We can save money by pooling our resources and risks with other governmental entities around the state.”
Effective this month, the City of Bayonne has an indemnity and trust agreement with the New Jersey Intergovernmental Insurance Fund for property and casualty insurance. The City Council authorized this agreement in a resolution it passed at its meeting held on August 17. The resolution stated, “The city administration has determined that the city would be better served by obtaining insurance coverage for property and liability claims.”
The NJIIF, a public entity, was created originally by municipalities in 1991 as a means of managing workers’ compensation costs. In 1995, the NJIIF increased the scope of its coverage to include property and casualty. Today, the NJIIF offers eleven categories of insurance coverage to New Jersey municipalities, counties, and school districts statewide.