General Contractor Insurance Requirements in NYC

Published by October 25, 2022 Category: Show All

The construction business constantly sees giant booms, and New York City is no exception. With construction workers and companies building projects daily, including tall skyscrapers, companies need to know general contractor insurance requirements. 

Unfortunately, even with safety protocols and the best equipment available, construction work still remains one of the most dangerous jobs. A bodily injury can range from minor pain to life-threatening injuries. 

This blog will explore general contractor insurance requirements, different types of insurance policies available, and more. Our insurance company can also provide general contractor insurance in NYC. 

What Policies Do General Contractors Need in New York

Between 2010 and 2018, the number of construction employees in New York rose by around 30% or roughly 398,000 jobs. Although general contractors exist in nearly every field, construction work is still one of the fastest-growing sectors. 

Additionally, fields like construction work also have some of the most dangerous working conditions. These reasons mean a general contractor must have the necessary policies in place. A general contractor’s insurance policy depends on the business’s nature. 

For example, a company involving vehicles means you may need to purchase commercial auto insurance to fulfill your state’s requirements. This policy can cover property damage, medical bills caused by an auto accident, vandalism, theft, and weather damage. 

Likewise, a property with a commercial lease often requires a general liability insurance policy. This policy protects businesses from common issues like property damage caused by a customer. At the very least, most general contractors will require this policy. 

Additionally, if a general contractor has employees, they must provide workers’ compensation insurance. This type of insurance can cover expenses like lost wages and medical bills following work-related injuries. Next, we’ll go over a few more policies in more depth: 

Professional Liability Insurance 

Mistakes happen even to the most professional business owner or workers. However, errors like missing a construction project’s deadline can cause a client to sue a contractor or their business. 

Also called errors and omissions insurance (E&O), professional liability insurance protects you when a client sues you due to a professional mistake. 

Contractor’s Tools and Equipment Insurance 

Work sectors like construction use plenty of tools, including:

  • Nail guns 
  • Saws
  • Drills
  • Heavy machinery and other equipment 

General contractor insurance requirements can help cover damaged or missing construction equipment when transporting them to different locations. Contractors can also look into Inland Marine Insurance for protecting items during transit. 

Builder’s Risk Insurance 

Fires, theft, vandalism, general property damage, etc., can all occur while a construction project is still underway. Builder’s Risk Insurance can cover these risks. 

Surety Bonds 

Surety bonds guarantee reimbursement to a client if a general contractor can’t fulfill their duties in their contract. These types of bonds can include payment, performance, and bid bonds. In addition, New York requires general contractors to have an insurance bond. 

How Do You Know What Policies You Need? 

General contractor insurance requirements may not always be straightforward. Whether running a business or starting a new project, you may need specific policies or permits. Additionally, some policies might not be legally necessary but will greatly benefit your business. 

Immediate concerns most general contractors face include:

  • Property damage
  • Lost wages due to work lulls 
  • Properly working with any utilities
  • Receiving fines for procedures or projects that violate federal, state, or local laws or guidelines

It’s easy to feel overwhelmed trying to figure out which policies you need. An insurance broker can help develop and pair you with the right policies. In addition, they can build disability and liability programs protecting you, your business, equipment, employees, and more. 

What Are Construction Insurance Minimums in New York City? 

Construction and demolition permits require showing you fulfill minimum construction insurance requirements. Most projects have specific insurance policies needed. Common factors that affect these minimums include:

  • The scope of your project, including building height, the number of stories, etc.
  • Permit types
  • If you use equipment like a tower crane

Make the Process Easier With TCE Insurance 

Navigating what policies you need can be challenging, especially for new contractors or business owners. At TCE Insurance, we help general contractors save valuable time and money. We can help you compare the top-rated insurance policies in the U.S. and pick the right ones. 

Our team will help you fulfill your general contractor insurance requirements. Our team will analyze factors like: 

  • Your business partnerships 
  • Any commercial lease requirements
  • Your prior claims and insurance history 
  • How many employees you have

Discover the factors that affect the cost of general contractors’ insurance and how TCE Insurance can help by calling 718-571-8385!