Insurance and Tort Reform

State Business Insurance Fund
Support creation of a state business insurance fund, financed by the insurance industry, sufficient to ensure that all New York businesses will be able to obtain affordable property, liability and construction insurance coverage at levels required to do business in New York State. Chamber members have experienced great difficulty in obtaining coverage in certain industries and in obtaining coverage at acceptable cost. A state fund would be the insurer of last resort for companies unable to obtain insurance elsewhere. Insurance companies licensed to do business in New York, but unwilling to provide coverage for New York based business operations or unwilling to provide said coverage at an affordable cost, would finance said fund.

Federally Guaranteed Excess Insurance for Terrorist Acts on United States Soil
The Terrorism Risk Insurance Act should be made permanent. In order to induce insurance companies to continue offering coverage for terrorist acts, and to revitalize development projects that have stalled due to the reluctance of insurers to provide coverage for high profile building projects, insurers would be responsible for the first $10 billion in losses while the federal government would pay 90% of any losses beyond that amount. Coverage for acts of war, insurrection and civil unrest on US soil should also be provided.

Tort Reform
Support Tort Reform proposals and changes to the Court system that automatically sunset each year unless the Governor certifies annually that they continue to result in significant actual savings for businesses and consumers through a quantifiable lowering of insurance rates equal to the savings of the insurance industry. Tort Reform proposals must require that insurers pass along to businesses and other consumers insurance savings that are generated by changes in the Court system and legislative limits placed upon the tort system.

Eliminate Labor Law 240/241
Support elimination of Labor Law 240/241 which makes contractors, subcontractors and building owners absolutely liable for virtually any injury on construction sites regardless of the fault of the worker. Risks of claims 500% higher in New York than in seven other states studied, have increased liability insurance premiums to the point that the price of building affordable housing has increased to as much as $6,000 per unit and large numbers of minority and small contractors may go out of business.

Mandatory Non-Jury Arbitration for Claims under $25,000
Support legislation that would streamline the litigation process by referring claims under $25,000 to mandatory non-jury arbitration in order to reduce expenses and relieve congestion in the Court system.

Extend Jurisdiction of the State Court of Claims
Support state legislation extending the jurisdiction of the state Court of Claims, which does not use the jury system, to include all suits against local municipalities and their government departments and agencies. Although new claims against New York City in fiscal year 2002 are at the lowest level in 11 years, saving the City $55.5 million from the previous year, a small number of excessive case resolutions has increased costs by 200% since 1990. Extending the jurisdiction of the Court of Claims to cases against the City of New York will reduce taxes by reducing the number of excessive verdicts against the municipality.