§ 3-09 Insurance.
RCNY § 3-09
(a)General. The following is intended to serve as minimum requirements for housing companies in arranging an insurance program to provide protection against the usual hazards experienced during the course of operation. Since the same conditions may not prevail in all developments, separate studies should be made as to the actual exposures and hazards and the insurance coverage necessary to meet them. It is incumbent upon all housing companies to see that proper insurance coverage is maintained at all times and that coverages are modified or changed to meet changing conditions. Copies of all insurance policies and renewals shall be transmitted promptly to HPD. Furthermore, all insurance coverage that is maintained by housing companies must be issued by an insurance company in good standing licensed to issue insurance in New York State.
(b)Minimum required coverage.
(1)Upon opening a corporate or sales office.
(i)Public liability (Comprehensive General Liability Form) Minimum limits of $1,000,000 per occurrence, $2,000,000 annual aggregate for bodily injury and property damage.
(ii)Workers' compensation. As required by statute.
(iii)Disability benefits. As required by statute.
(iv)Blanket fidelity bond. Appropriate limits as determined by HPD.
(v)Hold up. Inside and outside. Money and securities. (Broad Form if possible where safe is located on premises.) (2) Upon acquisition of site.
(3)Upon commencement of construction of the limited-profit housing company development. The following coverages are generally supplied by the General Contractor pursuant to the terms of the construction contract. Contractors shall be required to submit the required policies delineated in this section to HPD before the commencement of any construction work and operations shall not be allowed to commence until coverage required has been approved by HPD.
(vi)Boiler. Minimum of $1,000,000 pursuant to the terms of the Construction Contract. It is recommended that the housing company rather than the contractor obtain this coverage.
(vii)Payment and performance bond. Pursuant to the terms of the Construction Contract.
(4)Upon occupancy of buildings. Policies carried during the initial or construction periods of a housing development for which there is a continuing exposure thereafter may remain in force and the policies adjusted in accordance with requirements during later conditions.
(viii)Directors and officers. For mutual housing companies. Minimum limit of $1,000,000.
(ix)Umbrella liability. The minimum requirement for under 150 units $1,000,000; 151 to 500 units $5,000,000; 501 to 1,000 units $10,000,000; over 1,001 units $15,000,000.
(x)Miscellaneous risks. (A) Automobiles. Any vehicle owned by the housing company shall be covered by automobile liability insurance with minimum limits of $250,000/500,000 for bodily injury, including accidental death, and at least $100,000 for property damage. For damage to the vehicle itself, comprehensive fire and theft shall be obtained. For automobiles owned by employees and officers of the housing company, used on behalf of the company, proper liability coverage shall be obtained with limits of $250,000/500,000 for bodily injury including accidental death and $100,000 for property damage. (B) Sales and management companies. Where the housing company employs independent sales or managing agents, these agents or their employees who are responsible for the handling of housing company monies shall, without expense to the company, be bonded by a Blanket Position Bond, in favor of the housing company and a copy of such Blanket Position Bond shall be submitted to HPD. (C) Contractors, concessionaires, and similar professionals. In the event that repair, alterations, exterminating or any other work or services shall be performed by the housing company, the housing company shall require that all firms performing such operations, supply evidence that workers' compensation and public liability insurance are in force. The limits for liability shall be at least $500,000 for bodily injury and property damage, combined single limit. It may be that certain contractors and concessionaires, by the nature of the liability factor for the work being done, and the cost of the contract, would have a higher risk factor. In that event we reserve the right to require, on a case by case basis, a higher amount for bodily injury. The housing company and HPD shall be named as an Additional Insured. (D) Commercial tenants and licensees. Must carry a minimum of $1,000,000 for bodily injury and property damage, combined single limit. It may be that certain commercial tenants and licensees, by the nature of their business, would have a higher bodily injury risk factor. In that event we reserve the right to require, on a case by case basis, a higher amount for bodily injury. The housing company and HPD shall be named as an Additional Insured. (E) Architects and engineers. Must furnish evidence of their liability coverage. (F) For subparagraphs (x)(C) and (x)(D) above, the housing company and HPD shall be named as an Additional Insured. (G) Insurance coverage shall be reviewed prior to the anniversary date of each policy with respect to the adequacy of coverage. HPD may direct a housing company to increase the amount of its coverage to reflect current replacement value where appropriate.
(c)Notice of loss.
(2)If damage to housing company property is sustained at other than normal business hours, the loss must be reported to HPD on the first regular business day following the occurrence.
(5)Unless HPD exercises its rights under the mortgage to apply insurance proceeds to the mortgage, all checks in payment of losses shall clear through HPD Insurance Unit. HPD representatives will inspect to see that the damaged property has been restored to satisfactory condition, after which time the checks shall be released to the housing company.
(d)Cancellation. All policies shall provide for a minimum of thirty (30) days notification to HPD in the event of cancellation, amendment or alteration of a policy.
(e)Capital grant insurance requirements.
