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

Before a contractor starts work on your home in New York, whether in Saratoga County or anywhere else in the Capital Region, ask for three things. You want a certificate of general liability insurance, proof of workers' compensation coverage, and proof of disability benefits coverage, or, for a business with no employees, a state-issued exemption. Ask for the certificates to come directly from the insurance agent or carrier, check the dates and the business name, and keep copies. These documents matter most on the day something goes wrong, such as a fall from a ladder or water damage to a neighbor's property, and by then it is too late to ask.

Why it matters to you

If an uninsured worker is injured on your property, you may find yourself facing questions about who pays the medical bills and lost wages. If a contractor without liability coverage damages your house, or a neighbor's, you may be left to pay for the repair yourself or file a claim on your own homeowner's policy. Insurance certificates do not guarantee good work, but they mean that when an accident happens, there is a policy in place to respond to it.

Remodeling in the Capital Region involves ladders, icy roofs, power tools, demolition and sometimes open walls during a rainstorm. Accidents are not rare. Asking for certificates is a routine, reasonable request, and an established contractor should be able to provide them without hesitation.

The three documents to ask for

General liability insurance

General liability covers damage the contractor causes to your property or someone else's, and injuries to people who are not the contractor's workers, such as a visitor tripping over materials. Ask for a certificate of insurance (often an ACORD form) that shows:

• The insurance company and policy number
• The named insured, which should match the business name on your contract
• The policy period, which should cover the dates of your project
• The coverage limits

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

Workers' compensation

Workers' compensation covers injuries to the contractor's own employees. In New York, businesses with employees are generally required to carry it. Proof usually comes on a New York-specific form from the carrier, such as a C-105.2, or a U-26.3 from the New York State Insurance Fund. A general liability certificate does not substitute for workers' comp.

Disability benefits

New York also requires most employers to carry disability benefits coverage, which pays employees for off-the-job injuries and illness. Proof typically comes on form DB-120.1. Like workers' comp, this is separate from liability insurance.

The CE-200 exemption

A business with no employees, such as a sole proprietor who does all the work personally, may not be required to carry workers' compensation or disability benefits. In that case, the New York State Workers' Compensation Board issues a Certificate of Attestation of Exemption, form CE-200. If a contractor gives you a CE-200, the important question is whether anyone else will be working on your job. A helper, laborer or subcontractor on site changes the picture, and you should ask how they are covered.

The Workers' Compensation Board publishes information about these forms and coverage requirements on its official site, wcb.ny.gov.

Insurance and building permits

New York requires proof of workers' compensation and disability benefits coverage, or a valid exemption, before most building permits are issued. That is one reason building departments ask for these forms with a permit application. If your project needs a permit, the contractor's certificates will usually be part of the paperwork. Our post on building permits in Saratoga Springs explains which projects typically need one.

How to verify what you're given

A certificate is only useful if it is real and current. Steps to take:

1. Ask for certificates to be sent directly from the agent or carrier, not handed over as a photocopy.
2. Check the business name and address against the name on your contract.
3. Check the dates. The policies should be in effect for the full length of your project.
4. Call the agent or carrier listed on the certificate to confirm the policy is active.
5. For workers' comp, use the state's coverage lookup. The Workers' Compensation Board offers an online way to check whether an employer has coverage on file.
6. Keep copies with your contract and other project paperwork.

Subcontractors

Many remodeling projects include subcontractors such as electricians, plumbers or tile setters. Ask whether subcontractors will work on your job and whether they carry their own insurance. A general contractor's policy may or may not extend to them, so it is reasonable to ask for their certificates too.

Licensing in New York

New York does not have a single statewide license for general home improvement contractors. Some counties and cities do license them, and trades such as electrical and plumbing may be licensed locally. Check what applies where you live, and ask the contractor directly. Insurance and licensing are separate questions; a license does not prove insurance, and insurance does not prove a license.

Other things to have in writing

Insurance is one part of protecting yourself. The others are a clear written scope, a payment schedule tied to finished work, and written change orders. Our posts on what a remodeling estimate should include and phased payments vs paying upfront cover those in detail.

Frequently asked questions

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

It may or may not, and relying on it can lead to higher premiums or disputes. The contractor's own liability and workers' compensation coverage should respond first. Call your own insurance agent before a large project to understand where your policy stands.

What is a CE-200 form?

A CE-200 is a Certificate of Attestation of Exemption from the New York State Workers' Compensation Board. It states that a business is not required to carry workers' compensation or disability benefits, usually because it has no employees. It is used, among other things, to apply for building permits.

Is a verbal assurance of insurance enough?

No. Ask for written certificates sent from the insurer or agent, check the names and dates, and confirm the policy is active. It is a standard request that a professional contractor should expect.

Asking for insurance certificates is a reasonable request on any project, from restoration and built-ins to a full remodel. We visit the site first and provide a written scope of work by phase, and we welcome questions like these before any agreement is signed.