Stockton’s current insurance coverage was found to need more attention to detail.
By: Carl Reader
STOCKTON The Borough Council said it was shocked to learn Monday it has no insurance coverage should the Delaware River overflow into this tiny river town.
The council listened Monday during its work session to Christopher Tarricone, president of the independent insurance agency Herder-Tarricone Associates, propose ways to improve the borough’s insurance coverage.
Mr. Tarricone looked over Stockton’s current coverage and found it could be tidied up with more attention to detail. The borough has been unsatisfied with the current level of service it’s been receiving with its existing policy and is looking for ways to improve its coverage.
"There’s a lot of housekeeping that needs to be done," Mr. Tarricone said regarding the borough’s existing policy. "We’d like to do that."
One major piece of housekeeping that needs to be addressed is the borough’s lack of flood insurance, Mr. Tarricone said.
That came as a shock to some board members. Many didn’t know the borough’s existing policy leaves it completely unprotected in the event of a flood.
"It’s silly to think we wouldn’t have it," said Councilwoman Joan Haberle.
The council can’t take action on the issue until the next meeting, but that should be time enough before the spring thaw. Still, it appeared surprising to most present that Stockton didn’t have flood coverage already. Former Borough Clerk Elaine Vanselous asked if coverage was available.
"You as an agent can get us flood insurance, can’t you?" she asked.
There was no hesitation on Mr. Tarricone’s part.
"Absolutely," he replied. "We can get it ASAP. Especially with the spring season coming."
Board member Andrew Giannattasio requested Mr. Tarricone supply the board with a list of the things lacking in the current policy and things that needed to be changed. Mr. Tarricone said he would do so.
Mrs. Vanselous said there was another problem with the current coverage. She said because the borough doesn’t have a formal policy for hiring and firing employees, it gets "hammered" on its insurance premiums. It does have a policy on sexual harassment, but lacks guidelines on how to hire or fire someone.
Mrs. Haberle asked how much liability coverage the borough had, and Mr. Tarricone responded that there was $6 million per claim. That coverage is adequate, he said.
"I think you can sleep OK," he said.
Mr. Tarricone said that without even looking at specifics, he thought there would be a 10 to 15 percent increase in insurance costs. What’s driving the crisis in insurance costs is the Sept. 11 terrorist attacks on the World Trade Center and the Pentagon, he said. The reinsurance markets are getting tight so insurance coverage costs are higher, he said.
Herder-Tarricone Associates serves many nearby boroughs and municipalities, including Hunterdon County, Readington Township, Ingham Township, Delaware Township, East Amwell and West Amwell.
"I give you that information simply to say that this is a line of business we’re very active in," Mr. Tarricone said. "We pride ourselves of being very aware of what’s happening in that area and what programs are available."