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3530 Insurance Management

NORTHFIELD BOARD OF EDUCATION FILE CODE: 3530 Northfield, New Jersey

Policy

INSURANCE MANAGEMENT

Liability Insurance

Purpose

The Northfield Board of Education recognizes the risks it faces in the ordinary course of conducting a school program and chooses to insure itself against certain liabilities as a result of said risks.

Authority

The board shall, in accordance with law, insure its employees against injury or death ensuing out of the course of their employment and chooses also the following:

A. Whenever a civil, administrative criminal or quasi-criminal action or other legal proceeding has been or shall be brought against any person for any act or omission arising out of and in the course of the performance of his/her duties as a member of the board of education, and in the case of a criminal action, such action results in final disposition in favor of such person, the board of education shall defray all costs of defending such action, including reasonable counsel fees and expenses, together with costs of appeal, if any, and shall save harmless and protect such person from any financial loss resulting therefore. The Northfield Board of Education may arrange for and maintain appropriate insurance to cover all such damages, losses and expenses.

B. Whenever any civil administrative criminal or quasi-criminal action or other legal proceeding has been or shall be brought against any person holding any office, position or employment under the jurisdiction of the Northfield Board of Education, including any student teacher or person assigned to other professional pre-teaching field experience, for any act or omission arising out of and in the course of the performance of the duties of such office, position, employment or student teaching or other assignment to professional field experience, the board shall defray all costs of defending such action, including reasonable counsel fees and expenses, together with costs of appeal, if any, and shall save harmless and protect such person from any financial loss resulting therefore; and said board may arrange for and maintain appropriate insurance to cover all such damages, losses and expenses.

Property Insurance

Purpose

The board recognizes its responsibility under law to keep all insurable property of this district, real and personal, insured for its replacement value against loss or damage by fire and has adopted as policy the extension of that coverage to theft, water damage, glass breakage, explosion, boiler damages, smoke, windstorm, vandalism and flood. The board may in accordance with the law, enter into a joint contract for the purchase of insurance.

Authority

In placing the insurance coverage, the board shall be guided by: the price of such coverage; the ability of the insurer to meet prescribed obligations promptly and fully; the reputation and past performance of the agent or the insurer; and the desirability of distributing the insurance coverage of the district.

Adopted: No Date

File Code: 3530

INSURANCE MANAGEMENT (continued)

NJSBA Review/Update: October 2009; December 2010 Readopted: October 24, 2011

Key Words

Insurance, Risk, Liability, Liability Insurance, Property Insurance, Accident Insurance

Legal References: N.J.S.A. 18A: 12-20 Indemnity of members of boards of education, civil and criminal actions

  1. 18A: 16-6 Indemnity of officers and employees against civil actions
  2. 18A:18A-42(e) Duration of certain contracts
  3. 18A: 20-25 Insurance of Property

Possible

Cross References: *3100 Budget planning, preparation and adoption *3326 Payment for goods and services *3400 Accounts *3570 District records and reports

3571 Financial reports *3571.4 Audit

*Indicates policy is included in the Critical Policy Reference Manual.

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