Insurance Requirements for NYC Access Agreements, the complexities. Are you planning a new build, ground up construction, major alteration in NYC five boroughs ? Or is someone building or renovating (including underpinning) a property next to or adjacent to your building? You’ll likely need to obtain or require an access agreement from the adjacent property. This agreement outlines the terms and conditions of your access to the property. It will include insurance requirements to protect the property owner and other parties involved. In this article, we’ll discuss what you need to know about navigating insurance requirements in New York City access agreements.

Understanding Access Agreements

First, let’s define what an access agreement is. An access agreement is a legal document that allows a third party to access a property for a specific purpose. This may include performing construction work, installing equipment, conducting inspections, access to a roof, building protections, scaffolding abutting your building, unpinning and a plethora of other reasons. Access agreements will include provisions for insurance to protect the property owner and other parties involved.

Common Insurance Requirements for NYC Access Agreements

The specific insurance requirements in access agreements can vary widely depending on the type of work being performed and the property owner’s preferences. However, some common insurance requirements you may encounter include:

• Commercial General Liability Insurance. This coverage protects against claims of bodily injury or property damage caused by the work being performed.
• Workers’ Compensation Insurance. This coverage is required for all workers performing the work and provides benefits for medical expenses and lost wages if a worker is injured on the job.
• Property/Builders Risk Insurance. This coverage protects against damage or loss to the property during the course of the work.
• Umbrella Liability Insurance. This coverage provides additional liability protection beyond the limits of your general liability policy.
• Contractors pollution policy. See my article on our website for information about this coverage.
• Site pollution insurance policy. See my article on our website for information about this coverage.
• Owners Protective Professional Indemnity (OPPI). See my article on our website for information about this
• Performance Bond
• Subcontractors Default Insurance (SDI)
• Navigating Insurance Requirements in Access Agreements is very complex.

I can tell you that a majority of the access agreements I have seen and prepared by attorneys do not make insurance sense. The insurance coverage terms contained in the agreement are either outdated, are not real coverage terms or the limits and coverage requested are unattainable.

There are a few key steps you can take to ensure success in satisfying the Insurance Requirements for NYC Access Agreements:

• Read the access agreement carefully and make note of any insurance requirements.
• Work closely with your insurance broker to ensure that you have the appropriate coverage for the specific work being performed. I have seen things in access agreements that are not coverage terms, are unattainable and a contract breach can have a huge financial impact on either party.
• Keep all insurance documentation up to date and readily available for the property owner and any other parties involved.
• Be proactive about addressing any insurance-related issues that arise during the project to avoid delays or disputes.

Insurance Requirements for NYC Access Agreements and why the devil is in the details

All insurance liability policies are by no means created equal. Here are some Insurance Requirements for NYC Access Agreements that need to be considered.

• If you’re building or renovating a building are you better off with project specific policy or are you better off with an owners interest policy ?
• When does it make economical sense to buy the previous vs the latter?
• When does it make sense to buy an owner controlled insurance program (OCIP) vs a contractor controlled insurance program (CCIP)?
• Does your policy contain some of the necessary coverages ?
• Injuries to employees and subcontractors to address New York Labor Law 200, 240 and 241?
• Does you policy include work performed “on your behalf.” Does it include contractual liability ?
• Does your insurance policy comply with NYC DOB RCNY requirements ?
• Does your policy include extended completed operations to match the State Statutes ?

Navigating insurance requirements in New York City access agreements can be challenging, but it’s essential to protect yourself and the property owner during the course of the work. By understanding the common insurance requirements in access agreements, working closely with your insurance broker, and staying proactive throughout the project, you can ensure a successful outcome and avoid costly disputes or delays.

We can help you insure your project and help you to navigate the insurance provisions found in these complex access agreements.