LPP REPORT
Examining your
criminal coverage
When considering which of the two levels
of criminal coverage your Local should fund,
it is important to know that in many cases,
$50,000 in coverage will not be sufficient to
get you through a criminal trial.
If charges are brought against you for offi-
cial misconduct, among other things, there
is a mandatory five-year prison sentence
attached, which leaves you no option but to
go to trial. It is important to know that a full-
blown trial can cost more than $150,000 to
$200,000. In certain cases, attorneys might
not even take up the matter, as they would be bound by the
courts to represent you through the trial, putting them at risk
for a huge financial loss. This begs the question of what type of
LPP plan you should have for your members.
The traditional plan covers each member up to $50,000 for
civil and criminal coverage and $25,000 for administrative
18
NEW JERSEY COPS
■ FEBRUARY 2018
coverage for $156 per year. Our new coverage waives all three
of these caps for $256 per year. The difference of $100 per year
(or $1.92 per week) — for security that will prevent you from
putting up a $50,000 retainer when the coverage runs out —
might be a good option for your members.
Over the years, we have had members forced into the posi-
tion of taking plea deals because of the lack of available funds.
That is one of the reasons that we developed the waiver of lim-
its coverage. If you consider a 30-year career at $100 each year,
your maximum exposure is $3,000. That cost is much lower
than refinancing your home in the event of a trial.
One of the caveats for the waiver of limits coverage is that
the whole Local must opt in or out. The reasoning for this is
so that Locals cannot just submit “high-risk” members, which
would create a situation of adverse selection and put the plan
in harm’s way.
Please take some time and discuss these options with your
members to determine the best plan for your Local. d