The New York City Department of Buildings says that it will be making changes to its general liability insurance requirements for contractors working in the city. Insurance agents are closely watching the government agency, hoping that the changes will be more lenient on contractors than those made in the past. Earlier this year, the department issued sweeping changes to its regulations regarding liability insurance.
The majority of the changes were met with sharp criticism from contractors and insurance agents for making coverage virtually impossible to obtain. The department has taken these concerns to heart and says that it will be introducing a new set of changes that will be friendlier to contractors.
Agents have been working with lawyers to help sway the department’s decisions regarding general liability insurance. Insurance agents have warned city officials that the majority of such policies already contain language that limits coverage for contractors. Coupled with the fact that most insurance companies do not provide notice when a policy is canceled, the new rules have made coverage for contractors a tricky, if not impossible issue.
The department has thus far been open to the suggestions of insurance agents. Officials have stated that they want what is best for consumers, but that changes are necessary. In a memo released early yesterday, the department notes that, as the result of new ideas introduced to its previous ruling, “contractors will have a much easier time meeting the requirements now.”
