It seems easy enough to drive across the state lines and keep right on working, but the reality is Connecticut contractors should think twice before starting a project in New York.
Today we are going to explain why it’s critical to be careful crossing into NY.
The First of several reasons is that many Connecticut or New Jersey contractors general liability policies specifically exclude any work in the state of New York.
Why would they do that? Two Words. Action over.
If you are fortunate enough to not have a New York state exclusion, you still are NOT necessarily set with your general liability.
In addition to a New York exclusion, you also need to watch out for an injury to employee exclusion or action over exclusion.
The last thing you want to do is go marching into NY thinking you are fully covered and have a major coverage gap on your CGL.
Now if you are all set with your GL with no New York state exclusion or injury to employee / action over exclusion, you are probably thinking, “Heck yeah, I am all set!”
Well hold on just another second. First of all, congratulations for having a great general liability policy. But as you know, general liability is not the only policy contractors need.
Workers Compensation is almost always an issue for out-of-state contractors.
The easiest and simplest way to check if you’re good to go with your work comp is to bust out your policy and look for the page labeled “Information Page.”
If you are covered for work in New York in section 3A you will have both the state of Connecticut and New York listed, as well as any other states your Workers Compensation policy covers you for.
It is extraordinarily rare for any higher risk trades, like roofers, framers, or any exterior trade to have an out-of-state policy that will cover them in New York.
If you fall into one of the lower risk classes like Plumbing, HVAC or Electrical, while you might not already have New York on your work comp policy it is usually a simple phone call to get it added.
*If only it was that easy to fix the General Liability issues*
The third and final reason to hold off on starting that New York job is licensing.
In New York, especially the lower Hudson Valley and headed into NYC, you must be licensed with the county you are trying to work in. Unlike many other states where only certain trades might need to be licensed, even a painter will need a license to work in most of New York.
Bottom Line: Expanding your operation into New York can be a great thing.
But you need to be fully prepared for what it’s going to cost and the headaches of getting licensed.
If you are looking to move your construction business into New York, please reach out. We are happy to review what it will take for your business.