The New York City Department of Transportation has recently begun rejecting contractors’ permit applications due to those documents lacking proof of an insurance policy that covered work above five stories. The new DOT rules appear to apply even to applicants who have no plans to work at that height.
New DOT Rules May Affect Insurance Policies
Contractors have been scratching their heads over these rejections, because the reasons they have received appear not to pertain to the actual work they are performing.
For example, one water and sewer contractor was rejected due to the new DOT rules about insurance policy height requirements, despite not planning to perform work above the first floor. Similar permits that lacked insurance policies covering work above five stories have also been rejected.
If the new DOT rules force contractors to enroll in insurance policies without height restrictions, they could face significant and (and possibly unnecessary) cost increases.
So far, the DOT has not provided clarification for why the new requirements were put in place.