NYC Department of Building's Liability Insurance Ruling
If You Purchase NY Construction General Liability Insurance After June 13th, 2011 the following must be met:
• Permitee must have
NY Construction General Liability limits written per occurrence,
aggregate limit basis with limits set forth in Table 1.
• The limit set forth
may be achieved through any combination of primary, excess, umbrella, or
wrap up policies as long as they meet the following carrier
- a. Issued by a company that
maintains an A.M. Best rating of at least an "A-VII", or Standard &
Poors rating of at least an A.
- b. Provide coverage at least as broad as set forth in the most recent edition of the ISO Form CG0001.
c. Provide the City of New York together with its officials and
employees as "Additional Insured with coverage at least as broad as that
set forth in ISO Forms CG 2012 & CG 2026.
- • Provide a total aggregate limit of
coverage equal to or above the occurrence limit that applies exclusively
to the project for which the permit is issued (pursuant to a project
specific policy or a per project aggregate limit endorsement such as ISO
Form CG 2503.
• Contain none of the following exclusions:
- a. Completed Operations Exclusion
- b. Explosion, Collapse or Underground Exclusion
- c. Contractual Liability Exclusion
d. Third Party Action Over Exclusion ( NY Labor Law)
- e. Where project involves residential construction, a residential exclusion
f. Where a project involves use of an Exterior Insulation & Finish System (EFIS), an EFIS Exclusion.
- • Contain the following endorsement:
This policy shall not be canceled, terminated, modified or changed in a
way that affects the city by issuing insurance company unless 30 days
written notice is sent to the Named Insured and the Commissioner of the
New York City Department of Buildings, EXCEPT for termination due to NON
Payment of Insurance Premium which may be made on only 10 days written
• Maintain and show proof of both NY Workers Compensation Insurance, & NY State Statutory Disability Insurance.
• Permittee shall notify in writing all of the New York
Construction General Liability Insurance Carriers of any loss, damage,
injury, or accident and any claim or suit arising out of or relating to
any operations performed by or n behalf of the permittee for which the
department has issued a permit, (including an injury or accident
affecting the permittee's own employees) no later than 20 days after
such event. Notice to the NY Construction General Liability Insurance
carriers must expressly specify that this notice is being "given on
behalf of the City of New York as Additional Insured as well as the
Named Insured" The notice shall also contain the following information:
Named Insured, the number of the permit, the date of the occurrence, the
location & identity of the injured party. Permittee shall
simultaneously send a copy of the Notice to: City of New York c/o
Insurance Claims Specialist, Affirmative Litigation Division, New York
City Law Department, 100 Church Street, New York, N.Y. 10007.
• Proof of Liability Insurance remains a Certificate of Insurance
& a Sworn Statement from a Licensed Insurance Broker in a form
prescribed by the department.
• The New York City Department of Buildings may require copies of
insurance policies. Copies of such policies must be submitted within 30
days of the request.
• If the Department determines that the insurance submitted is
found to be non-compliant, or absent, the department may issue the
permittee a stop work order relating to the permit at issue.
• Indemnification to the City of New York and its employees is
required irrespective of the insurance coverage placed, and executed.
• The City shall be reimbursed for all claims costs and defense as
it relates to the actions of the permittee in relation to the job site
that has been licensed by the City.
In speaking with the NYC D.O.B it has come to their attention that there are many NYC DOB Stalled Sites around the city that are under the purview of the NYC Building Department as there are building permits on these sites that need to be renewed. The resulting conundrum is whether the new NYC General Liability Ruling will apply to these stalled sites, vastly increasing the insurance costs for these sites where no construction has been or is planned to commence for some time. Thus it's important to note that the NYC DOB is prepared to issue exemptions for those stalled construction project sites.
Thus if you have a parcel of land that you don't plan on building on for several months, you may get an exemption to the increased NYC General Liability Insurance limits IF you enroll the site into the Stalled Sites Program.
We suggest that you begin your renewal process 2 to 3 weeks early and seek to pull permits 3 to 4 weeks prior to the expiration date. We expect both the Buildings Department & New York Construction firms to have a difficult transition period which may delay the issuance of permits causing unnecessary delays and work stoppages.