Assembly Bill A9427

2023-2024 Legislative Session

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

download bill text pdf

Sponsored By

Current Bill Status - In Assembly Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2023-A9427 (ACTIVE) - Details

Current Committee:
Assembly Consumer Affairs And Protection
Law Section:
General Business Law
Laws Affected:
Add §392-k, Gen Bus L

2023-A9427 (ACTIVE) - Summary

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.

2023-A9427 (ACTIVE) - Bill Text download pdf 

                             
                     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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