Before winter and the new year, small business owners in New York have three reasons to review their insurance: liability for an icy sidewalk outside their premises, vehicles used for work in winter conditions, and the employee coverage most New York employers must carry — workers’ compensation, disability and Paid Family Leave.
A deli, a hair salon, a renovation crew with two vans, a cleaning company with a few employees — each faces a different winter risk. But a policy bought years ago is easy to forget until a customer slips at the door or a worker gets hurt.
The icy sidewalk out front: a duty and a risk
In New York City, clearing the sidewalk is the property owner’s job. According to NYC311, if snow stops falling between 7 AM and 5 PM, the sidewalk must be cleared within 4 hours; between 5 PM and 9 PM, within 14 hours; and between 9 PM and 7 AM, by 11 AM. Owners who don’t comply can be fined by the Department of Sanitation.
A fine, though, is the smaller problem; a claim is the bigger one. The city’s Department of Transportation points out that an owner who does not maintain the sidewalk can be held liable for injuries. Businesses that rent their space should check the lease to see who handles snow removal and whose policy responds if someone gets hurt.
That kind of incident usually falls to general liability coverage, which the U.S. Small Business Administration (SBA) says protects a business from financial loss when someone is hurt or someone else’s property is damaged. Coverage and limits are set when a specific policy is quoted.
Work vans and cars in winter weather
For contractors and cleaning companies, a vehicle is a work tool, and winter brings more fender-benders on icy ramps. The minimum auto coverages required in New York are listed by the state Department of Financial Services, which also encourages drivers to consider higher liability limits.
With a business vehicle, how it is used matters just as much. Tell your agent who drives it, whether it carries tools or merchandise, and whether employees run business errands in their own cars. Those answers decide between a personal and a commercial auto policy.
Seasonal hires and New York’s required employee coverage
The holiday season is when many stores and delis bring on extra help, so it pays to check employee coverage before a new hire’s first shift. According to the New York State Workers’ Compensation Board (WCB), most employers with even one employee must carry workers’ compensation, and virtually every employer in the state must also provide disability and Paid Family Leave coverage. Before adding staff, ask your agent whether your current policies account for the new people.
Cutting corners can be costly: the WCB lists penalties as high as $2,000 for every 10 days without required workers’ compensation coverage and, in serious cases, a stop-work order that halts all business activity immediately. Contractors adding crew for the season should know that in construction, someone performing services for a contractor is presumed to be the contractor’s employee unless the contractor shows that the statutory independent-contractor test is met. Calling someone a subcontractor does not change that on its own.
A year-end coverage check
Year’s end is also a good time to check how equipment, inventory and storefront fixtures are protected. Many small businesses consider a package that combines liability and property coverage, known as a business owner’s policy (BOP). What each type of policy covers, and how to prepare for a quote, is explained in our guide to business insurance on Staten Island.
Business owners who feel their basic limits are too low can ask about an umbrella policy, which extends liability protection beyond the limits of the underlying policies.
What it means for Polish American business owners
Many Polish American businesses on Staten Island, in Brooklyn and in Queens are family operations, where a single change — a new hire, a second van, a bigger space — can leave an existing policy out of step with how the business really works. Talking it through in Polish makes exclusions, limits and employer obligations easier to follow.
Thomas K. Kowalski runs an Allstate agency on Staten Island that serves clients in English, Polish and Spanish. Before a conversation about business coverage, it helps to gather your current policies, a list of employees and vehicles, and a rough value of your equipment and inventory.
Coverage, exclusions and limits depend on the specific policy and type of business; details are worked out during a quote at the agency. The agency’s services and contact details are listed in the Thomas Kowalski – Allstate listing on PolishPages.
This article is for informational purposes only. Coverage depends on the terms of each policy, and every situation requires an individual assessment — please contact the Allstate agency of Thomas Kowalski.
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