A 5278: 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.