New York General Contractor Insurance
In the state of New York, general contractor insurance is required on multiple levels. The types and amounts of insurance required depends upon the city you’re working in, the type of work you’re doing, and how much money your contract is worth.
If you have any individual person or company working for you, including family members or subcontractors, you must provide proof of workers comp insurance before you can even obtain licenses and permits in some locations. Penalties and fines can be stiff so be sure to consult with an insurance specialist to review your full needs.
General Liability Coverage
New York General Contractor Insurance should include a strong foundation of general liability coverage. General liability insurance protects your company from surprise accidents and events that cause people to get hurt, or property to get damaged. Bodily injuries is a term used to describe physical harm. When a person trips over a power cord or knocks over a ladder, if they are hurt then the cost of medical care is covered by your general liability policy. Likewise if personal property is damaged or destroyed and your company is deemed at fault for that, general liability pays for the replacements or repairs. This coverage provides numerous other basic levels of protection, such as from lawsuits against you for previously finished work and claims of false advertising.
New York General contractors have extensive amounts of capital invested into the appropriate tools for their trade. Specialized tools and equipment can cost tens of thousands of dollars individually, and that can become a large problem if something breaks or becomes damaged in the midst of a large job. Tools coverage can protect against losses due to damage or theft, and optionally provides many additional benefits.
Robust New York General Contractor insurance should include commercial auto insurance, so that your company is protected in the event of an auto accident. Auto coverage helps protect your company against accidents caused by uninsured drivers for instance, so that you don’t have to pay for the full cost of replacing the vehicle, tools and equipment that were on board. It also provides for medical care to the work crew who was in the vehicle, and can provide additional protections from events such as vandalism or falling debris.
In the state of New York, general contractors are required by law to protect themselves and their workers with workers compensation insurance. Due to the construction industry fair play act that went into effect October 26, 2010, New York defines most individuals – including family — and some subcontractors as employees for the purpose of workers comp coverage. Workers compensation takes care of an employee’s financial and medical needs if he is injured while working.
Workers comp provides added benefits to the employer because it can reduce or limit your potential liability if the worker takes legal action against you, as their employer when the incident occurred.
When covered events occur, they can sometimes exhaust the total coverage your company has for general liability. An option is to add umbrella coverage, also known as excess liability, so that your company is not left trying to pay any overage amounts on its own.