Mar 31, 2016

PIANY victory: Final state budget rejects Cuomo's wrap-up proposal

The final agreed-upon state budget rejected Gov. Andrew M. Cuomo's wrap-up insurance proposal included in his Executive Budget proposal released in January that sought to circumvent the current prohibition against "wrap-up" insurance programs, with which the owner of a public construction project could impose a predetermined insurance program on the contractors.

PIANY believes wrap-up programs could make it extremely difficult, if not impossible, for professional, independent insurance agents to properly insure their contractor clients working on the job and preclude many New York domestic insurers from benefiting from the state's public construction business, since only the largest national carriers would be financially equipped to handle the entire job on a wrap-up basis.