N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1630-3.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 1630-3.2 - Insurance to be carried by contractors

During construction period, contractors will continue to carry forms of insurance referred to under section 1630-2.2 to extent they apply. Special attention should be given to the following coverages.

(a) Fire and extended coverage insurance.

(1) Before any contractors commence construction operations, and before materials are delivered to project site, fire and extended coverage insurance must be obtained.

(2) This should be included in contract as coverage to be supplied by contractor. It should include name of authority and division as well as name of contractor. This policy will cover work done on project as construction proceeds, as well as materials on project site, and may include contractor's equipment.

(3) This policy may be obtained on either completed value or on monthly reporting form. Completed value form is preferable as it eliminates requirement on part of contractor and authority of filing monthly reports indicating value of completed work. In addition, it is usually much lower in cost. Regardless of which type of policy is obtained, in no event shall coverage be less than full insurable interest.

(4) Coverage is to be continued from time contractor starts until time he finishes his work. If authority determines that a certificate of occupancy issued for a specific building on project site constitutes completion of contractor's operations subject to punch list items insofar as that building is concerned, authority may notify contractor to reduce his builder's risk coverage and simultaneously authority may then place fire coverage on said building to protect its interest as owner. There shall be a continuity of insurance.

(5) In event that contractor's equipment is included in coverage, completed value form must be written in a sufficient amount to include value of contractor's equipment as well as completed value of project.

(b) Insurance on materials stored offsite. Those materials for project that are stored on project site shall be covered for fire and extended coverage perils under builder's risk policy referred to above. In certain cases, however, authority should see that fire and extended coverage, and mercantile burglary and theft insurance are obtained for such offsite materials. In event that these materials have been paid for by authority directly, authority should effect such insurance. If included in contractor's payments, coverage should be obtained from contractor.

N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1630-3.2