Bill > A02245

This bill establishes the "New York Small Contractor Relief Act", which creates a specialized captive insurance company to provide liability insurance for small construction contractors and minority/women-owned construction businesses. The bill addresses challenges in the insurance market for these contractors by allowing them to form a captive insurance company that can receive reinsurance from the New York State Insurance Fund. To qualify as a "small construction contractor", a business must be New York-based, independently owned, exclusively engaged in construction, have less than $5 million in annual gross revenues (or be a certified minority/women-owned business), and pay prevailing wages. The captive insurance company is required to establish a risk management program and cannot refuse to issue or renew policies based on geographic location or specific business lines. Contractors must demonstrate that their entire workforce is paid prevailing wages and must provide detailed information about their work locations. The bill includes a $50 million appropriation to support up to two captive insurance companies, with a maximum of $25 million per insurer. The act will take effect 180 days after becoming law and will expire after five years, with a required report on its performance to be submitted to state leadership before expiration.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A2245