Insurance in New York

Insurance requirements for New York contractors come from 3 sources at once: the municipality that issues your license, the New York Workers' Compensation Board, and the general contractor or customer you want to work for. Each may set a different floor. You have to clear the highest one. Workers' compensation. New York Workers' Compensation Board (WCB) administers coverage rules. For most construction employers, workers' compensation coverage is required from the first employee with very limited exceptions. Sole proprietors with no employees are generally not required to carry WC on themselves, but most general contractors will still require it on a certificate of insurance before they let a sub on the site. Check the WCB employer page linked below for the current rules on exclusions, executive officer exemptions, and corporate officer coverage. New York disability benefits insurance (DBL). Separate from workers' compensation. Employers with 1 or more employees who work more than 30 days in a calendar year are generally required to carry DBL coverage. Verify current thresholds on the WCB site. New York Paid Family Leave (PFL). Attached to the DBL policy. Covers paid leave for qualifying family and medical reasons. Employers who owe DBL generally also owe PFL. General liability. - NYC DCWP Home Improvement Contractors. DCWP sets a license minimum. Check the current DCWP license checklist linked below for the specific dollar limits. - NYC Department of Buildings. Master Electricians and Master Plumbers must carry insurance that meets DOB rules, and DOB requires higher limits for certain types of work. - Commercial general contractors in NYC typically require subcontractors to carry $1M per occurrence / $2M aggregate and often $2M or higher on projects with significant dollar value. - Additional insured endorsements and waiver of subrogation are standard asks on NYC commercial jobs. Other coverages to carry: - Commercial auto for trucks and vans used on the job. Personal auto policies carve out business use. - Hired and non-owned auto for employee-owned vehicles used on company business. - Inland marine (contractor's equipment). - Pollution liability for refrigerant, solvent, and fuel handling. - Employment practices liability (EPLI) once the employee count reaches double digits. - Umbrella. $1M to $5M over the underlying general liability is common for NYC commercial work. Shop rates annually. Trade association programs through NECA NY, Mechanical Contractors Association, Subcontractors Trade Association, and BTEA often price better than street rates for contractors working in NYC. Confirm every policy against the specific municipal license requirement and the GC's insurance schedule before you sign a subcontract.