Commercial
Commercial insurance in New York
Commercial insurance protects a business against claims and losses: someone injured on your premises, damage to your building or equipment, or a vehicle used for work. Most small businesses start with a business owner’s policy (BOP), which bundles general liability and property, then add coverage as contracts and payroll require it.
Who this is for
- Businesses signing leases or client contracts that require proof of insurance
- Anyone with a storefront, workshop or premises the public enters
- Contractors who need certificates before they can start a job
- Businesses with vehicles, tools or inventory
Who it is not for
- Sole proprietors with no employees, no premises and no contracts, though this changes the moment a client asks for a certificate
- Businesses whose only exposure is employee injury, which falls under workers’ compensation
What it covers and what it does not
| Covered | Not covered |
|---|---|
| Third-party bodily injury and property damage | Injury to your own employees, which falls under workers’ compensation |
| Your building, contents, equipment and inventory | Flood and earthquake, unless separately purchased |
| Business income lost while you are shut down after a covered loss | Losses from a shutdown with no physical damage |
| Products and completed operations | Professional advice and services, which require errors and omissions (E&O) coverage |
| Vehicles owned by the business | Employees’ personal vehicles, unless hired and non-owned auto coverage is added |
Every policy differs. This table describes what these policies generally do, not the terms of any specific contract.
New York requirements
- Certificates of insurance in New York must reflect the actual policy. A producer cannot issue a certificate that alters or misstates the coverage in force.
- Most commercial leases in New York City require the landlord to be named as an additional insured, with specific limits written into the lease. Read the insurance clause before you buy the policy, not after.
- Contractors in New York City generally need to satisfy both the licensing requirements of the Department of Consumer and Worker Protection and the insurance requirements written into each contract.
- Commercial auto is not optional for vehicles used in business. A personal auto policy can deny a claim if the vehicle was in commercial use at the time.
What it costs
A business owner’s policy for a small storefront typically starts in the low four figures a year. Contractors, restaurants and anything involving heights, heat or vehicles run considerably higher. Payroll, receipts and class code drive the number more than anything else.
What moves the number
- Class code, which is how carriers categorize what you actually do
- Annual receipts and payroll
- Square footage and building construction
- Claims history
- Contract requirements, which set the limits you have to carry
Common questions
My client is asking for a certificate of insurance. What do they need?
Send us the insurance clause from the contract. It will state the limits, whether they need to be named as an additional insured, and whether they need a waiver of subrogation. Those three details determine what the policy has to look like, and getting them wrong means the certificate gets rejected.
What is the difference between a BOP and general liability?
General liability covers claims made against you by other people. A business owner’s policy bundles that liability coverage with property coverage for your own building, contents and lost income. For most small businesses the BOP is both broader and cheaper than buying the pieces separately.
Does general liability cover my employees getting hurt?
No. Employee injury is covered by workers’ compensation, which is a separate mandatory policy in New York.