If you aren’t a New York GC, or have no interest in GC matters in the state, skip this thread.
But if you are, you are probably familiar to labor law 240, on the books for a few years now here, put there by the &$%*@ trial lawyers, and what a mess it has made for liability and WC insurance.
The underwriters have now established for themselves a 10 percent subcontracted work limit, beyond which they won’t insure for contractural liability, nor name the owner as additional insured.
You may be already insured for this, but I can assure you that if you were coming into New York from elsewhere with perfectly clean business history, nothing on your loss run reports, little to no WC claims, you would still run into the “cannot insure” wall here.
Can you build a project for a client and not subcontract more than 10 percent of its cost? You can, if you do your own excavating, concrete work, foundation work, plumbing, heating, electrical, hardwood floor work, tile work, drywall, plaster, etc.
But all you have to do is pick a few things off that list above, starting with the sitework and foundation, and the next thing you know, you are over 10 percent, and uninsurable.
Who dealt this mess? I know who. Guys like John Edwards. The trial lawyers.
Replies
Are you required to have GL in New York as a condition of having a license?
No licensing is required in my area. I cannot speak for downstate or NYC. My jurisdiction for permitting requires certs for GL, disability, and WC as prerequisites for permit issuance.
Wow, so it's the local authorities that have you on the hook, not the state licensing folks (if there are any). Here in WA it's no-GL-no-license.
Dick Siebert over on JLC has ranted about similar problems with his insurance in CA... I think his limit on subs is 25% which is still too low, expecially given the fact that there are separate state licenses for all the trades there, so you really can't perform in-house unless you're big enough to have all those employees, and all the licensing.
It gets even better than that!
I am a NY GC,live right on the CT state line, 75% of my subs are in CT.
Always collected certs of insurance-couple of years ago the auditor said all out of state subs needed a NY rider!
Most didn't have the rider , guess who got stuck with the bill.
I have loads of work and love to do it , but man business sucks!
Edited 4/22/2005 6:46 pm ET by JAYZOG
One of the reasons I`m looking to downsize.
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If you`d like to discuss topics other than home building, come on down to the Woodshed Tavern. Great bunch of guys and gals letting off a little steam about everything and anything. Its not a special club, but.....as of Monday, March 14, the Tavern folder will go behind an access wall. Only those who request access to this folder by contacting [email protected] will be able to view and participate in discussions there.
with stuff like that ... it makes even more sense ...
run ... don't walk!
Jeff Buck Construction
Artistry in Carpentry
Pgh, PA