The Governor signed a bill on October 25, 2021, amending General Business Law § 771[1] to require contractors and subcontractors to disclose the existence of property and casualty insurance (the “Bill”). The Bill takes effect on April 23, 2022.

General Business Law §771(i), will require that:

Before a contractor or subcontractor begins work on a home, such writing shall disclose to the homeowner the existence of a property and/or casualty insurance policy that covers the scope of such contractor or subcontractor’s employment should an insurance claim be filed resulting from losses arising from the work at such property. Such disclosure shall also include the contact information of the insurance company providing such property and/or casualty insurance, including a phone number and address.[2]

According to the Legislative History[3], this Bill is intended to “protect homeowners from damage that may be the result of work done by a contractor and/or sub-contractor by requiring contractors and sub-contractors to disclose in writing the existence of property and/or casualty insurance along with the contact information of the insurance company before doing any work on the property.”[4] Most cities, towns and villages in New York typically require that a contractor file proof of insurance before obtaining a building permit. However, that requirement relates to naming the city or town or village as an additional insured. In addition, the City of New York specifically requires that no exclusions in the insurance may apply to it.  Cities, towns or villages in New York with consumer protection departments often require that contractors register with the department and show proof of carrying a certain minimum level of insurance or post cash security against claims by consumers. However, this Bill is designed to prevent a contractor/sub-contractor from failing to provide their property and/or casualty insurance information or from misrepresenting the level of insurance they have to the homeowners before doing the work.[5]  The justification for this Bill is to ensure that when a property owner suffers damage to their property as a result of work performed by a contractor/subcontractor, the owner should have a clear understanding as to how to file a claim against the contractor/sub-contractor’s insurance carrier.

It is important for both contractors and homeowners to make sure that the proper insurance is provided at the inception of the project. Jaspan Schlesinger LLP can help you reviewing the necessary insurance requirements.

If you need assistance, please contact Christopher E. Vatter at or Charles W. Segal at

[1] 2021 NY A.B. A2202.

[2] General Business Law § 771(i).

[3] The purpose and justification of this bill can be found in the Senate Bill, S4060, which was substituted by New York State Assembly Bill A2202 on June 9, 2021.

[4] 2021 NY S.B. 4060 at “Purpose or General Idea of Bill”.

[5] Id. at “Justification”.