PIANJ-priority compulsory business insurance bill passes state Senate

May 31, 2022

Legislation that would require businesses and certain rental units to carry insurance passed the state Senate (25-11) on May 26.

The bill, S-1368, sponsored by Senate President Scutari, D-22, would require business owners to purchase liability insurance in an amount not less than $500,000 for combined property damage and bodily injury to or death of one or more persons in any one accident or occurrence. Owners of multifamily homes with four or fewer units are required to maintain liability insurance in an amount not less than $300,000.

The legislation was amended in March to require both business owners and rental unit owners to register a certificate of insurance, demonstrating compliance with this insurance requirement, with the Division of Local Government Services in the Department of Community Affairs.

The legislation has been sent to the state Assembly and it has been referred to the Assembly Financial Institutions and Insurance Committee for further consideration. A same-as bill (A-2687) was introduced and referred to the same committee in February.

Bradford J. Lachut, Esq.
PIA Northeast | + posts

Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.

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