New Atlantic City tram faces delays over insurance

ATLANTIC CITY — Insurance issues have temporarily put the brakes on a new tram system that will shuttle passengers along the Atlantic City Boardwalk.

B&B Parking was scheduled to start the service Sunday under the name Boardwalk Transfer. But the company says it learned Friday that it needed a $4 million umbrella insurance policy, and it could not immediately arrange for the coverage.

A company official told a New Jersey newspaper that it expects to have the policy in place on Monday and should start the service on Thursday morning. The company says it had a policy that provided for $1 million per occurrence and $2 million in total coverage, which it says were the specifications originally called for in the contract.

B&B Parking will pay the city a minimum of $126,000 per year for two years to operate five new electric trams.

Company officials have said each tram will seat as many as 15 passengers and will be operated by a driver and conductor. Rides will cost $2 each way and $5 for an all-day pass.

The trams’ start has been delayed by an ongoing lawsuit brought by Brigantine-based JJJN LLC, which was the runner-up during the contract bidding process. It wants the contract voided, claiming B&B’s bid violated existing city ordinance.