Sidewalk Cafe Insurance Rule

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Monday, August 10, 2015
Download Copy of Proposed Rule (.pdf): 

Statement of Basis and Purpose of Proposed Rule

Section 2-57(c) of Title 6 of the Rules of the City of New York, Chapter 2, subchapter F, sets forth the insurance requirements that must be satisfied by a sidewalk café licensee throughout the term of its license.  The Department of Consumer Affairs proposes amendments to clarify the requirements and bring them into line with city-wide standards, including by raising the minimum amounts of coverage.  Specifically, the proposed amendments:

  • Clarify the A.M. Best or Standard & Poor’s rating the issuing insurance company must satisfy;

 

  • Raise the minimum amounts of coverage to one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate;

 

  • Clarify that the coverage must at least be as broad as provided in the most recently issued edition of Insurance Services (“ISO”) Form CG 001 and that it be “occurrence” rather than “claims-made”;

 

  • Clarify that the coverage for the City of New York as an Additional Insured must be as broad as provided in the most recent edition of the ISO Form CG 2026;

 

  • Require that the coverage meet the requirements of the rule and the terms of the licensee’s revocable consent agreement;

 

  • Require that the licensee provide to the Department an endorsement(s) naming the City of New York as an Additional Insured and proof of the insurance by submission of a certificate of insurance in a form satisfactory to the Department; and

 

  • Require that the endorsement and certificate of insurance satisfy the requirements of the rule and the terms of the licensee’s revocable consent agreement, clarify the information that must be included, and require a sworn statement in a form prescribed by the Department from a licensed insurer or broker certifying that the certificate of insurance is accurate in all material aspects.

New material is underlined.

[Deleted material is in brackets.]

 

“Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this department, unless otherwise specified or unless the context clearly indicates otherwise.

 

Proposed Rule

Subdivision (c) of section 2-57 of Title 6 of the Rules of the City of New York is amended to read as follows:

 

(c) [Every licensee must secure and maintain throughout the term of the license liability insurance issued by a company duly authorized to do business in the State of New York, insuring the licensee and the city of New York and to hold them harmless from and against any claim, injury, or damage caused or alleged to be caused by or as a result of the construction, operation or use of the sidewalk café and any structure hereby authorized in the following amounts:] Insurance Requirements.

(1) [For bodily injury including death, in (i) the minimum amount of $100,000 for any one (1) person and (ii) the minimum amount of $300,000 for any one (1) accident; and] Every licensee must secure and maintain throughout the term of the license commercial general liability (“CGL”) insurance, which shall:

(i) be issued by a company that may lawfully issue the CGL policy.  The company must have an A.M. Best rating of at least A-/VII or a Standard and Poor’s rating of at least A;

(ii) insure both the licensee and the City of New York and protect them from any claims for injury (including death) or property damage that may arise from or allegedly arises from construction, operation or use of the sidewalk café and any structure hereby authorized;

(iii) provide coverage of at least one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate;

(iv) provide coverage at least as broad as that provided in the most recently issued edition of Insurance Services Office (“ISO”) Form CG 001 and be “occurrence” based rather than “claims-made”; and

(v) name the City of New York as an Additional Insured with coverage at least as broad as the most recent edition ISO Form CG 2026.

(2) [for property damage in the minimum amount of $25,000.] Failure to maintain insurance coverage in [the foregoing amounts] complete conformity with this rule and the terms of licensee’s revocable consent agreement shall cause the immediate revocation of the license.

(3) Every licensee shall provide the endorsement(s) naming the City as an Additional Insured and proof of CGL insurance by submission of a certificate of insurance in a form satisfactory to the Department that:

(i) satisfies the requirements of this rule and the terms of licensee’s revocable consent agreement;

(ii) identifies the insurance company that issued such insurance policy, the policy number, limit(s) of insurance, and expiration date; and

(iii) is accompanied by a sworn statement in a form prescribed by the Department from a licensed insurance broker or agent certifying that the certificate of insurance is accurate in all material respects.

Public Hearing
Subject: 

Sidewalk Cafe Insurance Rule

Public Hearing Date: 
Monday, August 10, 2015 - 12:00pm
Contact: 

Mary Cooley at 212-436-0392 or mcooley@dca.nyc.gov

Location: 
66 John Street, 11th Floor
New York, NY 10038