New York Contractor Compliance Guide
Navigate New York's complex contractor insurance requirements, licensing, and compliance regulations
New York Contractor Insurance Requirements
Essential insurance coverage required for New York contractors
Workers Compensation
RequiredMandatory for all contractors with employees in New York.
Disability Benefits
RequiredRequired disability benefits insurance for employees.
General Liability
RequiredRequired for most contracting work and public projects.
Surety Bond
ConditionalRequired for home improvement contractors and public work.
New York Contractor License Categories
Insurance and bond requirements by contractor type
Home Improvement Contractor
Required for residential improvement work over $200
Requirements
- $20,000 surety bond or insurance
- Workers compensation insurance
- Commercial general liability
- Registration with Department of Consumer Affairs
Bond Required
Min Insurance
Public Work Contractor
For contractors working on public construction projects
Requirements
- Performance and payment bonds
- Workers compensation coverage
- General liability insurance
- Prevailing wage compliance
Bond Required
Min Insurance
Specialty Trade Contractor
Electrical, plumbing, HVAC, and other licensed trades
Requirements
- State license for specific trade
- Workers compensation insurance
- General liability coverage
- Trade-specific bonding (varies)
Bond Required
Min Insurance
Key New York Construction Laws
Important regulations affecting contractor insurance and liability
Labor Law Section 240 (Scaffold Law)
Absolute liability for elevation-related injuries in construction work.
Impact:
Higher liability insurance costs and strict safety requirements.
Wicks Law
Separate contracting requirements for public projects over $50,000.
Impact:
Multiple prime contractor structure affects bonding and insurance.
Prevailing Wage Law
Required wage rates for public work projects.
Impact:
Higher labor costs affecting workers compensation premiums.
Steps to New York Compliance
Your roadmap to meeting New York contractor requirements
Determine License Requirements
Identify which licenses and registrations apply to your work.
Home improvement, trade licenses, or specialty permits may be required.
Secure Workers Compensation
Obtain workers comp and disability benefits coverage.
Must be in place before beginning any work with employees.
Obtain Liability Insurance
Secure adequate general liability coverage.
Consider Scaffold Law implications for coverage limits.
Post Required Bonds
File surety bonds where required by law.
Home improvement bond or project-specific bonds.
Critical New York Compliance Notes
Scaffold Law (Labor Law §240): Creates absolute liability for elevation-related injuries. Requires higher insurance limits and cannot be waived by contract.
Home Improvement Contractors: Must register with local authorities and maintain $20,000 bond or insurance for any residential work over $200.
Workers Compensation: Required for all employees including part-time workers. Failure to carry coverage is a criminal misdemeanor.
Disability Benefits: Separate required coverage for employee disability benefits - not included in workers compensation.
Public Work: Requires prevailing wages, certified payroll, and specific bonding requirements under Wicks Law.
Additional Resources
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