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New York Cracks Down on General Contractors Liability Insurance

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Written by Brett Lipton   
Friday, January 01, 2010

New York City Building Department Issues Notice to General Contractors

In a recent  release the New York City Building Department has ceased accepting Insurance Certificates from General Contractors brandishing Certificates of General Liability Insurance for Artisan Insurance Policies.  Reason being, these policies do not offer coverage the the General Contractors as General Contractors, these are very specifically, Contractor Policies, big difference.

The difference between a General Liability Insurance Policy for a Contractor and the General Liability Insurance for a General Contractor are quite specific, as they are very different positions. Although many contractors refer to themselves as General Contractors because they perform several functions and therefore do general work, this does not make them General Contractors.

What does distinguish a general Contractor is the fact that a General Contractor, from an General Liability Insurance standpoint is that General Contractors subcontract Contractors, or Artisans to perform the work.

The risk here is that the Contractor Policy does not cover General Contractor Risks.  One specific one is Injuries to Subcontractors. While most people think that Workers Comp will cover an injury to an employee, consider for a moment that the subcontractors' employees DO NOT WORK FOR THE GENERAL CONTRACTOR.

So,  if the subcontractor, or his employees are injured as a result of negligence on the part of the General Contractor, or even another subcontractors' team on the job site, the General Contractor is responsible, and his General Liability Insurance Policy is subject to claim. These Artisan Policies specifically exclude any and all injuries to subcontractors and in most times EXCLUDE THE USE OF SUBCONTRACTORS. The following is the content of the notice released by the New York City Department of Buildings regarding General Contractors Liability Insurance:

 

As of February 15, 2010 the Licensing Unit will no longer accept Artisan policies for Registered General Contractor (123 Family) Commercial General Liability Insurance. This includes all certificates with a policy number containing an “ART” prefix or suffix.
If you have previously submitted this type of policy for your registration number, you must submit a new certificate for the appropriate policy.
Licensees who do not submit the new certificate by February 15, will no longer be eligible to pull or renew of permits. (link to original notice )

 

Click here for more information about General Contractor's Liability Insurance

Click here for a quote on General Contractor's Liability Insurance

 

 
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