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.
STATE OF NEW YORK
________________________________________________________________________
5278
2025-2026 Regular Sessions
IN ASSEMBLY
February 12, 2025
___________
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:
1 Section 1. The general business law is amended by adding a new section
2 392-k to read as follows:
3 § 392-k. Insurance requirement. 1. Except as otherwise required by
4 law, every service company licensed to do business in this state shall
5 obtain a minimum of one million dollars all risk or comprehensive gener-
6 al liability insurance coverage and such additional amounts as are
7 sufficient to cover the value of property consigned to or deposited with
8 such business by customers of the business for cleaning, repair, alter-
9 ation or enhancement.
10 2. A current written certificate or certificates of insurance shall be
11 conspicuously displayed on the premises of such service company in an
12 area accessible to customers of the service company.
13 3. Failure by a service company to keep such all risk insurance or
14 comprehensive general liability insurance coverage in full force and
15 effect, shall be grounds for the secretary of state to refuse to issue
16 or renew a license or permit or to suspend or revoke such license or
17 permit.
18 4. All such insurance required by this section shall be issued by an
19 insurer authorized to do business in the state or otherwise be procured
20 by an excess line broker duly licensed pursuant to the applicable
21 provisions of the insurance law.
22 5. As used in this section "service company" means any business that
23 takes someone's property into its care, including but not limited to a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09146-01-5
A. 5278 2
1 dry cleaning establishment, repair shop, storage center, and auto
2 mechanic shop.
3 § 2. This act shall take effect on the ninetieth day after it shall
4 have become a law.
