Requires service companies to obtain liability insurance coverage sufficient to cover the value of property consigned to or deposited with such business by customers of the business; requires service companies to display a certificate of insurance; provides remedies for violations.
S T A T E O F N E W Y O R K
________________________________________________________________________
9427
I N A S S E M B L Y
March 14, 2024
___________
Introduced by M. of A. SOLAGES -- read once and referred to the Commit-
tee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to requiring
service companies to obtain liability insurance coverage sufficient to
cover the value of property consigned to or deposited with such busi-
ness by customers of the business
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general business law is amended by adding a new section
392-k to read as follows:
§ 392-K. INSURANCE REQUIREMENT. 1. EXCEPT AS OTHERWISE REQUIRED BY
LAW, EVERY SERVICE COMPANY LICENSED TO DO BUSINESS IN THIS STATE SHALL
OBTAIN A MINIMUM OF ONE MILLION DOLLARS ALL RISK OR COMPREHENSIVE GENER-
AL LIABILITY INSURANCE COVERAGE AND SUCH ADDITIONAL AMOUNTS AS ARE
SUFFICIENT TO COVER THE VALUE OF PROPERTY CONSIGNED TO OR DEPOSITED WITH
SUCH BUSINESS BY CUSTOMERS OF THE BUSINESS FOR CLEANING, REPAIR, ALTER-
ATION OR ENHANCEMENT.
2. A CURRENT WRITTEN CERTIFICATE OR CERTIFICATES OF INSURANCE SHALL BE
CONSPICUOUSLY DISPLAYED ON THE PREMISES OF SUCH SERVICE COMPANY IN AN
AREA ACCESSIBLE TO CUSTOMERS OF THE SERVICE COMPANY.
3. FAILURE BY A SERVICE COMPANY TO KEEP SUCH ALL RISK INSURANCE OR
COMPREHENSIVE GENERAL LIABILITY INSURANCE COVERAGE IN FULL FORCE AND
EFFECT, SHALL BE GROUNDS FOR THE SECRETARY OF STATE TO REFUSE TO ISSUE
OR RENEW A LICENSE OR PERMIT OR TO SUSPEND OR REVOKE SUCH LICENSE OR
PERMIT.
4. ALL SUCH INSURANCE REQUIRED BY THIS SECTION SHALL BE ISSUED BY AN
INSURER AUTHORIZED TO DO BUSINESS IN THE STATE OR OTHERWISE BE PROCURED
BY AN EXCESS LINE BROKER DULY LICENSED PURSUANT TO THE APPLICABLE
PROVISIONS OF THE INSURANCE LAW.
5. AS USED IN THIS SECTION "SERVICE COMPANY" MEANS ANY BUSINESS THAT
TAKES SOMEONE'S PROPERTY INTO ITS CARE, INCLUDING BUT NOT LIMITED TO A
DRY CLEANING ESTABLISHMENT, REPAIR SHOP, STORAGE CENTER, AND AUTO
MECHANIC SHOP.
§ 2. This act shall take effect on the ninetieth day after it shall
have become a law.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
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