N.J. Admin. Code § 17:20-12.5

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:20-12.5 - Insurance, indemnification, and bonding of courier service

(a) As a requirement to the issuance of a courier service registration, such courier service agrees to the following:

1. The courier service shall indemnify and defend, at registrant's own expense, and release the State, the Division, and any of the officials and employees of the State or the Division from any and all claims, damages, claims for damages, causes of action or suits, and related expenses, including court, attorney, or other fees, that may arise out of or occur directly or indirectly as a result of any act or omission of such courier service, its officers, employees, and anyone determined to be the courier service's agent pursuant to the common law tenets of agency law, or operation carried on pursuant to or in accordance with such registration, including, but not limited to, the purchase of courier services through the courier service's system, placement of requests for courier services through such courier service's system or the generation of, or failure to generate, tickets to complete ticket purchases related to such requests for courier services. This obligation to indemnify shall survive the expiration, revocation, or suspension of the courier service's registration;

2. The courier service shall obtain and maintain during the term of its registration sufficient insurance, which shall include cyber liability insurance, errors and omissions insurance, directors and officers insurance, and such other insurance coverage, with limits and coverage requirements and minimum carrier ratings as the courier services application form states. Proof of same, in the form of declaration pages, shall be provided to the Division prior to the courier service's commencement of operations. Lapse of any insurance coverage specified on the application form may result in revocation of courier service registration;

3. The courier service shall post a bond or its equivalent in an amount as determined by the Director in consultation with the Director of the Division of Risk Management and as set forth in the courier service application to be no less than $ 40 million for the protection of its courier customers. Proof of same shall be provided to Division;

4. The courier service shall post a bond or its equivalent in an amount as determined by the Director in consultation with the Director of the Division of Risk Management and as set forth in the courier service application to cover general business liability;

5. The courier service shall bond all courier service employees. Proof of same shall be provided to Division;

6. The courier service shall comply with all other bond requirements or their equivalent in the courier service application as determined by the Director in consultation with the Director of the Division of Risk Management;

7. Each bond or its equivalent shall be conditioned on the premise that the applicant, its agents, or its employees will not be guilty of fraud or extortion, will comply with the rules and regulations promulgated by the Director, and will pay all damages occasioned to any person by reason of misstatement, misrepresentation, fraud or deceit, or any unlawful act or omission in connection with the provisions in this section and related business conduct;

8. The courier service shall state in its contracts and agreements with its affiliates, vendors, and customers that nothing in the contracts or agreements shall give rise to liability of the State or of the Division, its officials, or employees. The courier service shall state on its website and mobile application, along with any other disclaimers, legally-required notices, or other notices concerning liability of the courier service, that nothing appearing on the courier service website and no transactions conducted on or through the courier service website or systems shall give rise to liability of the State or of the Division, its officials, or employees; and

9. The courier service shall disclose its insurance coverages and amounts in its website and/or mobile application.

N.J. Admin. Code § 17:20-12.5

Adopted by 50 N.J.R. 1826(b), effective 8/6/2018