New York Contractor Compliance Guide

Navigate New York's complex contractor insurance requirements, licensing, and compliance regulations

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New York Contractor Insurance Requirements

Essential insurance coverage required for New York contractors

Workers Compensation

Required

Mandatory for all contractors with employees in New York.

Coverage Amount: Varies by classification

Disability Benefits

Required

Required disability benefits insurance for employees.

Coverage Amount: Statutory amounts

General Liability

Required

Required for most contracting work and public projects.

Coverage Amount: $1,000,000+

Surety Bond

Conditional

Required for home improvement contractors and public work.

Coverage Amount: $20,000 - $50,000

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

$20,000

Min Insurance

$1,000,000 GL

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

Project-specific

Min Insurance

$1,000,000+ GL

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

Varies by trade

Min Insurance

$500,000+ GL

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

NY Department of Labor

Workers compensation and disability benefits information.

Visit DOL Website

NY Department of State

Licensing and registration information for contractors.

Visit DOS Website

Related Compliance Resources

Additional guides and resources for contractors operating in multiple states

Other State Compliance Guides

Florida Compliance Guide
DBPR requirements and hurricane considerations
Utah Compliance Guide
DOPL licensing and seismic safety requirements

In-Depth State Insurance Guides

North Carolina Contractor Insurance Guide
Comprehensive coverage requirements and licensing
Alabama Contractor Insurance Guide
Workers comp and severe weather considerations
Municipal Project Bonding Guide
Essential for public work contractors

Need Help with New York Compliance?

Our New York insurance specialists understand the state's complex requirements and can help you secure compliant coverage.

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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.