Contractor insurance in New York: what to ask for before work starts

Before any contractor starts work on your house in New York, ask for a certificate of general liability insurance, proof of workers' compensation, and proof of disability benefits coverage. A business with no employees can give you a state-issued exemption in place of the last two. Have the certificates sent straight from the insurance agent or carrier, check the business name and the dates, and keep copies. You'll only need them on the bad day, when somebody falls off a ladder or a burst line floods the neighbor's basement, and by then it's too late to ask.

Why you should care

Say a worker without coverage gets hurt on your property. Now there are questions about who pays the hospital and the lost wages, and some of them can land on you. Say a contractor with no liability policy cracks your foundation or puts a ladder through the neighbor's window. You may end up paying for the repair yourself or filing on your own homeowner's policy.

A certificate tells you nothing about whether the work will be any good. It only tells you there's a policy in place to answer when something goes wrong.

And things do go wrong. Remodeling in the Capital Region means ladders, icy roofs in March, saws, demolition, and sometimes an open wall when a thunderstorm rolls through. Asking for certificates is routine. A contractor who's set up properly can email them over the same day, and one who hedges is telling you something.

The documents, one at a time

General liability

This covers damage the contractor does to your property or anyone else's, and injuries to people who aren't the contractor's own workers, like a visitor who trips over a stack of drywall. Proof comes as a certificate of insurance, often on an ACORD form. Check that it shows the insurance company and policy number, a named insured that matches the business name on your contract, a policy period that covers the dates of your job, and the coverage limits.

You can ask to be listed as the certificate holder so the insurer has your name on the certificate.

Workers' compensation

Workers' comp covers injuries to the contractor's own employees. In New York, a business with employees is generally required to carry it. The proof is a New York form from the carrier, such as a C-105.2, or a U-26.3 if the policy is with the New York State Insurance Fund. A liability certificate is not a substitute for workers' comp, no matter how big the limits are.

Disability benefits

New York also requires most employers to carry disability benefits, which pay employees for injuries and illness that happen off the job. The usual proof is form DB-120.1. It's separate from liability coverage too.

The CE-200 exemption

A business with no employees, say a sole proprietor who does every bit of the work, may not have to carry workers' comp or disability benefits. In that case the New York State Workers' Compensation Board issues a Certificate of Attestation of Exemption, form CE-200.

If you're handed a CE-200, ask one question: will anybody else be working on my job? A helper carrying lumber, a laborer on demo day, or a subcontractor changes things, and you should ask how those people are covered.

The Workers' Compensation Board explains these forms and who needs what on its official site, wcb.ny.gov.

Permits and insurance go together

New York requires proof of workers' comp and disability coverage, or a valid exemption, before most building permits are issued. That's why the building department asks for these forms with the application. If your job needs a permit, the contractor's certificates will usually be part of that paperwork anyway. Our post on building permits in Saratoga Springs covers which projects typically need one.

Checking what you're handed

A photocopy of a certificate from three years ago proves nothing. Here's what to do, and this is one list you can actually check off:

1. Ask for the certificates to come directly from the agent or carrier, not a copy pulled out of a truck.
2. Match the business name and address to the name on your contract.
3. Check the dates. Every policy should be in force for the whole length of your project.
4. Call the agent or carrier on the certificate and ask whether the policy is active.
5. For workers' comp, use the state's coverage lookup. The Workers' Compensation Board has an online way to see whether an employer has coverage on file.
6. File copies with your contract and the rest of the project papers.

Subs carry their own coverage, or should

Most remodels bring in subcontractors at some point: an electrician, a plumber, a tile setter. Ask who'll be on your job and whether they carry their own insurance. A general contractor's policy may or may not extend to the subs, so asking for their certificates as well is fair.

Licensing is a separate question

New York has no single statewide license for general home improvement contractors. Some counties and cities license them, and trades like electrical and plumbing may be licensed locally. Find out what applies where you live, and ask the contractor directly. Keep the two questions apart. A license doesn't prove insurance, and insurance doesn't prove a license.

The rest of your protection is on paper too: a clear written scope, payments tied to finished work, and written change orders. We cover those in what a remodeling estimate should include and phased payments vs paying upfront.

Frequently asked questions

Does my homeowner's insurance cover a contractor's accident?

Maybe, maybe not, and leaning on it can mean higher premiums or a fight over the claim. The contractor's own liability and workers' comp should respond first. Before a big project, call your own agent and find out where your policy stands.

What is a CE-200 form?

It's a Certificate of Attestation of Exemption from the New York State Workers' Compensation Board. It says a business isn't required to carry workers' comp or disability benefits, usually because it has no employees. Among other things, it's used when applying for building permits.

Is a verbal assurance of insurance enough?

No. Get written certificates sent from the insurer or agent, check the names and dates, and confirm the policy is active. Any professional contractor expects the request.

Ask us these same questions, on a cellar stair or a full set of built-ins and restoration work. The first site visit is the right time to sort out paperwork, before anything gets signed.