New Jersey § 40a:10-2

§ 40a:10-2.

A municipality maintaining a volunteer fire department, or in which there are one

or more incorporated volunteer fire companies affording fire protection in the municipality,

or in which there exist one or more incorporated volunteer first aid, emergency, rescue

or ambulance squads rendering services generally throughout the municipality, may

effect and maintain insurance with any insurance company authorized to do business

in this State, which the governing body of the municipality deems necessary or desirable

for the protection, safety and welfare of the municipality, the volunteer fire department,

incorporated volunteer fire companies or incorporated volunteer first aid, emergency,

rescue or ambulance squad: a. Covering their motor vehicles, equipment and apparatus against loss or damage however

caused; b. Against all liability arising from the ownership, use or operation of their motor

vehicles, equipment and apparatus; or, c. Both. The governing body of the municipality may, in its discretion, pay the entire costs

of such insurance or such portion thereof as it may consider to be advisable.