Like every business owner, a contractor need insurance to keep his business safe from disasters, lawsuits and accidents. Each contractor needs to figure out what types of insurance to carry and how much, and working with a business insurance agent can help.
Common types of contractor’s insurance in New York are:
- General liability
- Workers’ compensation
- Hired and non-owned commercial auto coverage
- Commercial umbrella policy
- Excess general liability
Regulations Covering Contractor Insurance
There are a number of state laws that cover the insurance a contractor needs to carry. A general rule of thumb is $2 million of general liability insurance for contractors and subcontractors.
The exact amount varies based on a number of factors. Each individual contract determines the minimum amount of general liability insurance that the business needs to have. A contract with a homeowner for a remodel or addition to a home would generally need less coverage than a contract with a state or municipal agency.
Worker’s compensation insurance is complicated and ever-changing. The New York Department of Buildings handles specific laws that govern coverage. To get permits, licensure, and permit renewals, a contractor must present a certificate of New York state worker’s compensation insurance coverage (form C 150.2) and a certificate of compliance with the New York state disability benefits law (form DB 120). Exemptions are handled with forms WE/CB 100 or WC/CB 101.
In addition, the New York labor laws are stringent, requiring absolute liability policies. These include:
- scaffolding laws
- gravity-related accidents that affect both workers and civilians
- flooring safety
General Liability Coverage in New York
General liability coverage is the foundation policy of every contractor. It handles two essentials:
- covers the general insurance needs of the business.
- provides a blanket of protection for most aspects of the industry.
With most general liability policies, the contractor and his main business will be covered, plus any other business that he owns at least 50% of. If the business setup is a corporation or association, the protection also extends to executive directors and company officers. These policies cover the employees as long as they are on company business.
A contractor should make sure he is covered by his policy in these areas:
- bodily injury, including medical costs and lost wages
- property damage
- completed projects and operations
- contractual liability covering rented or leased property that serves as the office for the contractor or as an operations facility
- liquor liability if applicable. This covers everything from office parties to consuming alcohol on the job at the workplace
- fire, lightning or explosions
- auto coverage for hired and non-hired vehicles, which is usually enough for a contractor who claims no titled vehicles as property
- legal costs
- medical payments
- personal injury
The amount that a contractor needs to carry depend on the jobs that he does. Special considerations might include:
- the need to be bonded for certain jobs
- specific bonds like bid, payment and performance, contract, and maintenance
- commercial cars, trucks and construction vehicles
- inland marine insurance
- warehouse insurance
- surety bonds
Clearly, contractor’s insurance in New York is complex. Check with a New York contractors insurance professional to get expert advice. It can save you money, time, and frustration in the future.
Call BOLT Insurance Agency at 1-800-216-4171 for your contractor’s insurance in New York needs.