Bill > A00071

This bill amends the New York insurance law to allow liability insurance policies to provide coverage for punitive damages, civil penalties, and other non-compensatory damages, with some important restrictions. Specifically, such coverage would be prohibited in personal lines insurance policies issued to individuals for non-business purposes and in commercial automobile liability insurance policies. The bill permits insurers to offer coverage for vicarious liability and damages arising from gross negligence or reckless conduct, but explicitly excludes coverage for damages resulting from intentional harmful actions. The coverage must be expressly stated in the insurance policy, and the new provisions will only apply to insurance policies with effective dates on or after the bill's implementation date. This change provides more flexibility for businesses and organizations in managing potential legal and financial risks by allowing them to purchase insurance that covers a broader range of potential damages beyond standard compensatory damages.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A71