New construction in New York City is heating up, That’s not news to anyone but what might be news is each new ground up and some major construction projects requires a pgl1 form.
The PGL1 Form is designed to make sure all major construction activity is properly insured.
The NYCDOB even developed a tool to help you comply by informing you and your broker how much coverage you need for your project.
There a few limited exemptions but you must meet ALL of the exemptions to qualify not just one. See full Requirements Here.
The exemptions apply for the following ONLY:
Construction of a one or two family home where the Excavation is less than 12 feet deep and the project is not on the lot line with an existing structure and lastly, the project’s height is less than 35 feet.
If your project qualifies based on all of those above requirements you are in luck and can avoid the PGL1 requirement.
However since most of you aren’t that lucky, you should familiarize yourself with the form.
The things to keep in mind that are going to affect how much coverage you need is mainly the height of the structure and if you are going to be using a tower crane.
IF you are going to use a tower crane the minimum liability required is $80 Million.
Another thing to keep in mind is the PGL1 form requires you to have good coverage. Prior to this requirement builders could get away with junk coverage which resulted in law suits and major headaches for both NYC DOB and injured workers.
However if you are building new construction in New York City you should already have good coverage with no action over exclusion.
In addition it also requires that you do not have exclusions for the following:
Completed Operations Exclusion
XCU Exclusion
If residential work, no residential exclusion
If EFIS work, no EFIS exclusion
Exclusion for work performed within the city of New York
Exclusion for the type of work performed as described in the permits.
Bottom Line:
This requirement is designed to protect the city of New York and insured workers not to benefit the construction industry. Having the right broker guide you through the process of a PGL1 form is vitally important.
The last thing you want to do is spend significant premium on a new policy only to find it isn’t in compliance with the PGL1 form.
Do you have a new project that might require a PGL1 Form?
Reach out and we can discuss it. I am happy to help.
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