N.Y. Agents Take E&O Concerns Over Contractor Certificates to Officials
New York insurance agents face potential errors and omissions claims if they follow a New York City requirement on certificates of insurance for road contractors, an agents group has warned.
The New York City Department of Transportation requires contractors applying for sidewalk and roadway construction permits to provide certificates with a notarized statement, signed by the insurance broker or company, attesting that the insured’s coverage meets the requirements of specific city regulations.
But the Independent Insurance Agents & Brokers of New York, Inc. has advised agents and brokers not to sign this statement due to the potential errors and omissions claims that may result and because they fear that doing so may violate New York State Insurance Department directives.
Representatives from IIABNY met with New York City Department of Transportation officials in Manhattan recently to air their concerns.
According to IIABNY, the group has agreed to draft revised certification statement language for the transportation officials to consider. They said left the meeting confident that progress had been made in addressing the issue.
An IIABNY representative, an attorney from the law firm Lustig & Brown, LLP and two member agents spoke with NYCDOT officials.
Source: IIABNY
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