Insurance Issues Delay New Tram Service in 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 The Press of Atlantic City 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 ordinances