Amendment of Insurance Requirements for Permittees

Adopted Rules: Closed to Comments

Effective Date: 
Wednesday, December 31, 2014


Local Law 52 of 2014 changed the effective dates of amendments of the New York City Construction Codes pursuant to Local Law 141 of 2013 and certain other local laws from October 1, 2014 to December 31, 2014.   


By rule effective December 19, 2014 (see rule titled “Amendment to Change Effective Date of Miscellaneous Rules Related to 2014 Construction Codes”), the Department of Buildings amended the effective date of rules that were previously adopted pursuant to the 2014 NYC Construction Codes to conform them to the new effective date of the code (December 31, 2014). 



Therefore, this rule went into effect on December 31, 2014, not October 1, 2014.



Statement of Basis and Purpose of Rule 


These rule amendments are promulgated pursuant to the authority of the Commissioner of the New York City Department of Buildings “Department” under Sections 643 and 1043(a) of the New York City Charter and Section 28-103.15 of the New York City Administrative Code.  Under Section 28-103.15, the Commissioner may require an applicant for a work permit to provide proof of workers’ compensation, disability and general liability insurance for a project “in such amounts and in accordance with such specifications as shall be set forth in the rules of the department or as otherwise required by law.” Section 101-08 of Title 1 of the Rules of the City of New York sets forth the specific proof-of-insurance requirements that applicants for work permits must satisfy in order for the Department to issue or renew the necessary permit.  


The proposed amendments to Section 101-08:  


·        Amend the list of the types of permits to which the rule applies. This will make the rule line up with changes that Local Law 141 of 2013 made to the Administrative Code;  



·        Add a requirement of $1 million in liability insurance for the installation of scaffolds and sidewalk sheds; 



·        Clarify that project-specific liability insurance (when required) must cover the type of work to be performed as described in the permit; 



·        Add a requirement of $2 million in liability insurance for raising or moving a building;  



·        Eliminate the requirement that a permittee’s liability insurance policy contain a certain cancellation provision, because the inclusion of such provision is already required under the New York State Insurance Law; 



·        Prohibit a permittee’s liability insurance policy from containing exclusions for work performed within the city of New York or for the type of work described in the work permit; 



·        Correct a typographical error in the official publication of the rule related to the proposed number of stories for a certain category of buildings that has a $25 million insurance requirement for a new building or major alteration.




The Department of Buildings’ authority for these rules is found in Sections 643 and 1043 of the New York City Charter and Section 28-103.15 of the New York City Administrative Code.


New text is underlined. [Deleted material is in brackets.]