Before starting your New York construction project, you should become familiar with the state’s general liability insurance requirements. These lengthy – and often complex – stipulations not only detail how much coverage you’ll need but also set forth the basic terms to follow to stay covered against any personal injuries that occur on your project site. For those looking to obtain a policy, here’s what you can expect from the process.
Determining Insurance Requirements
General liability insurance covers any personal injuries or damages that occur on the construction project site, so long as they are a result of the business’s operation. This type of policy covers a range of standard business risks and, in some cases, might even cover premises liability cases. Depending on your permit and project type, there are pre-set aggregate limits to the amount of coverage you can get. When allocating a permit for your New York construction project, you can use the Project Specific General Liability Insurance Tool to determine any additional project-specific insurance requirements you may need to meet.
The Policy Must Be Issued by a Legal Company
The company issuing your project’s general liability insurance policy must meet various conditions for the contract to be legally valid. Some qualifications of a legal company include meeting minimum ratings, like:
- A.M. Best rating: This rating indicates the health or financial strength of an insurance company. The minimum acceptable rating for the liability insurance provider is A-VII.
- Standard and Poor’s (S&P) rating: This rating ranks how credit-worthy borrowers are using standardized rating scales to determine their leverage levels and securities. The minimum accepted rating is an A.
The Policy Must Provide Coverage as Stated in Insurance Services Office (ISO) Form CG 0001
According to the most recent edition of the Insurance Services Office (ISO) Form CG 0001, the required coverage for commercial general liability includes protection against:
- Premise and operations explosions
- Collapse and underground hazards for property damage
- Personal or advertising injury products
The Policy Must Provide That the City Is an Additional Insured
General liability insurance usually extends coverage to other individuals or groups aside from the named insured. By including the city as an additional insured party for your construction project, both city officials and employees will have the same rights to liability claims as the named insured. These rights include the duty of care but do exclude responsibility for any premiums.
The Policy Must Provide a Total Aggregate Limit of Coverage That Applies to Your Specific Project
The liability coverage is written on an occurrence basis and has a general aggregate of $3 million for bodily harm or property damage. The minimum limits per occurrence are $1 million. The coverage limit you’ll need for your New York construction will depend on the type and regulations of the permit you obtain.
The Policy Cannot Contain Improper Exclusions
The liability insurance covering your construction project must not contain any erroneous exclusions, some of which include:
- completed operations exclusions
- XCU exclusions
- an insured contract exclusion broader than those specified in the most recent edition of ISO Form CG 0001
- exclusions for work performed within New York City
How the Leav & Steinberg Team Can Help
At Leav & Steinberg, we know how crucial meeting insurance requirements can be when launching your next construction project. That’s why our team of construction accident attorneys in New York offers expert guidance on following safety procedures for your next project. If you’re a construction worker and have been injured in an accident on-site, we can also help you explore your legal options. Contact us today for your free consultation.