New York insurance agents face potential errors and omissions claims if they follow a New York City requirement on certificates of insurance for road contractors, an agents group has warned. The city’s transportation department requires sidewalk and roadway contractors to provide certificates with a notarized statement, signed by the insurance broker or company, attesting that the insured’s coverage meets the requirements of specific city regulations.
But the Independent Insurance Agents & Brokers of New York, Inc. has advised agents and brokers not to sign this statement due to the potential E&O claims that may result and because they fear that doing so may violate state insurance department directives.
Representatives from IIABNY met with city transportation officials recently to air their concerns. IIABNY has agreed to draft revised certification statement language for the city to consider.
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