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A08688 Summary:

COSPNSRWright, Mosley
Amd 28-401.9, NYC Ad Cd
Requires an applicant to provide the full general commercial liability insurance policy and calls for the department to review such policy and ensure it does not include any prohibited exclusions and complies with applicable law.
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A08688 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  TITLE OF BILL: An act to amend the administrative code of the city of New York, in relation to providing proof of general commercial liability insurance   PURPOSE OR GENERAL IDEA OF BILL: To mandate that the city of New York department of buildings (DOB) read all insurance policies prior to approval of any building permit and provide a summary of all policy exclusions. The bill would ensure that properties adjacent to the site seeking a permit are aware of policy exclusions that could limit their claim against the insurance policy of the permit seeker due to property damage.   SUMMARY OF PROVISIONS: The administrative code of the city of New York is amended by adding a new section 28-103.   JUSTIFICATION: Many insurance policies on development sites include exclusions that limit responsibility for damage to adjacent properties that are damaged. This legislation ensures that all POIs, which are required when applying to DOB for permits, are read and summarized before permit approval. The summary must include exclusions to the developer's policy so that adja- cent property owners are well-informed and can effectively defend them- selves and anticipate possible liability problems. Real estate development can create sinking, rising, shifting, expanding or contracting of the earth that in turn can cause damage to adjoining properties. These property owners must be protected by receiving the necessary information before allowing construction in or around their property. This bill also provides more transparency to the DOB permit- ting process and would provide further protections for property in the city of New York.   PRIOR LEGISLATIVE HISTORY: new   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: TBD   EFFECTIVE DATE: This act shall take effect on the one hundred eightieth day after it shall have become a law
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A08688 Text:

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    October 23, 2019
        Introduced by M. of A. LENTOL -- read once and referred to the Committee
          on Cities
        AN  ACT  to  amend  the  administrative code of the city of New York, in
          relation to providing proof of general commercial liability insurance
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Section 28-401.9 of the administrative code of the city of
     2  New York, as amended by section 64 of part A of local law number 141  of
     3  the city of New York for the year 2013, is amended to read as follows:
     4    §  28-401.9  Insurance.  1. Except as noted otherwise for a particular
     5  license, or exempted by the commissioner pursuant to rule, prior to  the
     6  issuance  of  a  license,  or  during the renewal thereof, the applicant
     7  shall file with the department satisfactory  evidence  of  a  commercial
     8  general  liability insurance policy in the amount of one million dollars
     9  or such other amount as  the  commissioner  may  require  together  with
    10  satisfactory  evidence  of compliance with the workers' compensation law
    11  and the disability benefits law. Required insurance shall be  maintained
    12  for  the  duration of the license and any changes in coverage, insurance
    13  renewals, or policy status  shall  be  provided  to  the  department  in
    14  accordance with department rules.
    15    2. An insurance policy required to be provided pursuant to subdivision
    16  one  of  this  section  shall  be provided in full to the department and
    17  shall be accompanied by a sworn  statement  from  a  licensed  insurance
    18  broker, in a form prescribed by the department attesting that such poli-
    19  cy  provided is the full insurance policy.  Within five business days of
    20  the receipt of such policy, the department shall review to  verify  such
    21  policy does not include any prohibited exclusions.
    22    3. No license or permit shall be issued or renewed until:
    23    (a)  the  applicant has provided proof of insurance in accordance with
    24  this section; and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 8688                             2
     1    (b) the department has reviewed the insurance policy submitted by such
     2  applicant and provided such applicant with a letter, to be posted on the
     3  department's website in an area accessible to the public, verifying  the
     4  policy's compliance with the requirements of this article.
     5    §  2.  This act shall take effect on the nineteenth day after it shall
     6  have become a law.
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