Short answer
New York project insurance depends mostly on who signs the contract, because that person or entity generally needs to be a named insured. If you contract in your own name, your carrier may add you by endorsement. If you form a New York PLLC or PC, the carrier may add the new entity to your existing policy. Every answer depends on your policy and carrier, so confirm the details in writing.
Why can’t my LLC hold a New York architecture contract?
New York restricts how architecture and engineering can be practiced through a business entity. Many out-of-state firms learn this only when a New York project arrives. The New York State Office of the Professions is the right place to check the entity rules, and an attorney can advise on forming a PLLC or PC. Hardcover can’t advise on entity formation.
From there, firms usually pick one of two routes: contracting as a sole proprietor in their own name, or forming a New York-authorized entity. Each route changes who the named insured is.
How does the named insured affect New York project insurance?
The named insured is the person or entity the policy protects. The party that signs the contract generally needs to be an insured under the professional liability policy. If your LLC carries the policy but you sign personally, the policy may not line up with the contract.
Ask your carrier to confirm in writing who is insured for the New York contract before work starts.
Does my professional liability policy cover a contract in my own name?
Often this is handled by adding the individual as a named insured by endorsement, though it varies by carrier. One question we hear is whether a current policy covers work under a contract in the architect’s own name, or whether a separate policy is needed.
In a similar case, a two-partner practice had one partner as a California sole proprietor and one newly licensed in New York. The carrier confirmed that no change was needed for New York projects or for contracts in either partner’s name. That was one carrier’s answer, and yours may differ.
What happens to my insurance if I form a PLLC or PC?
A new entity can often be added to an existing policy. In that same case, the carrier confirmed it could add a future PLLC or PC to the policy.
Two points are worth raising with your broker:
- Retroactive date: Ask whether the new entity keeps the existing retroactive date so prior work stays connected to the policy.
- Cost: If revenue doesn’t change, adding an entity often brings little or no added premium. The carrier decides, so ask for a quote.
Does my coverage territory include New York projects?
Most architects and engineers professional liability policies cover work performed in the United States. Coverage territory is the geographic area where the policy applies. Check the territory wording in your own policy, and ask your broker to confirm New York projects fall inside it.
How does general liability apply to New York site visits?
General liability usually follows the firm rather than the state. A site visit in New York would generally be treated like a site visit anywhere else. Policy terms vary, so confirm with your broker, especially if the contract requires specific limits or additional insured wording. An endorsement may be needed to meet those requirements.
Do New York workers’ compensation rules apply to out-of-state design work?
They can. New York has its own rules for out-of-state employers who have workers in New York, and those rules are nuanced. If you have employees who will visit a New York site, talk to your agent about workers’ compensation before the first visit. A firm with no employees may face a different answer than one with staff.
Example: a Florida architect with a New York residential project
Consider a hypothetical solo architect in Florida whose LLC carries professional liability. A New York residential client asks her to sign the contract. She can’t use the LLC, so she chooses to contract in her own name.
Before she signs, she asks her broker to add her as a named insured by endorsement, confirms New York falls within the coverage territory and checks whether general liability limits meet the contract. She also asks about workers’ compensation before her first site visit.
What to check before you sign a New York contract
- Who the contract names as the signing party
- Whether that party is a named insured on your professional liability policy
- The retroactive date, and whether it carries over to any new entity
- The coverage territory wording
- Whether general liability limits and endorsements meet the contract
- Whether New York workers’ compensation rules apply to your staff
Our page on design firm insurance in New York covers the state in more detail.
Related questions
Can an out-of-state LLC sign a New York architecture contract?
Generally no for a standard LLC. Check the New York State Office of the Professions and speak with an attorney about your entity options.
Does my professional liability policy cover New York projects?
Most policies cover work in the United States, but confirm the coverage territory and named insured in your own policy.
Will adding a PLLC raise my premium?
Often little or nothing if revenue stays the same, though it depends on the carrier.
Do I need a separate policy if I contract as a sole proprietor?
Not always. Some carriers add the individual by endorsement. Ask your broker to confirm in writing.
Does general liability change for a New York site visit?
Usually it follows the firm, but terms vary. Review your policy and the contract’s requirements.