Key Takeaways
- New York follows a pure comparative negligence system where fault is allocated among all parties
- Commercial general liability policies in New York must comply with filed rates
- New York has specific requirements for professional liability coverage
- Punitive damages are generally insurable in New York, unlike some other states
- Joint and several liability applies to economic damages in New York
Last updated: January 2026
New York General Liability Insurance
New York has specific requirements for general liability insurance that agents must understand.
Comparative Negligence
New York uses a pure comparative negligence system:
How It Works
- Fault is allocated among all parties
- Damages reduced by percentage of fault
- No minimum threshold to recover
- Even 99% at-fault plaintiff can recover 1%
Example
If Plaintiff is 60% at fault and Defendant is 40% at fault:
- Plaintiff can recover 40% of their damages from Defendant
- There is no bar to recovery based on plaintiff's fault
Joint and Several Liability
New York applies joint and several liability in most cases:
| Situation | Liability Rule |
|---|---|
| Defendants 50%+ at fault | Joint and several for all damages |
| Defendants less than 50% at fault | Several only for non-economic damages |
Practical Effect
- Plaintiffs can collect full judgment from any defendant 50%+ at fault
- Defendants can seek contribution from other at-fault parties
- Article 16 of CPLR limits liability for non-economic damages
Commercial General Liability (CGL)
New York CGL policies must comply with state requirements:
Required Elements
- Occurrence vs. claims-made coverage clearly disclosed
- Coverage territory defined
- Limits per occurrence and aggregate
- Defense costs inclusion/exclusion
- Required exclusions disclosed
Rate Regulation
New York requires:
- Rates filed with DFS
- Prior approval for most lines
- Loss costs filed by advisory organizations
- Individual insurer expense factors
Professional Liability
New York regulates professional liability for various professions:
State-Required or Regulated Coverage
| Profession | Requirement |
|---|---|
| Attorneys | Disclosure if no coverage |
| Medical Professionals | Required for hospitals |
| Architects/Engineers | Required for state contracts |
| Insurance Producers | Not mandatory but recommended |
| Real Estate Brokers | Not mandatory |
Medical Malpractice
New York has specific medical malpractice requirements:
- Medical Malpractice Insurance Association (MMIA) for residual market
- Hospital professional liability pools
- Reporting requirements for claims
- Specific statutes of limitations
Punitive Damages
Unlike many states, New York generally allows insurance coverage for punitive damages:
General Rule
- Punitive damages are insurable in New York
- Coverage depends on policy language
- Public policy does not prohibit coverage
- Intentional acts may still be excluded
Exception
- Direct liability for intentional wrongdoing may not be covered
- Vicarious liability for punitive damages is generally covered
Products Liability
New York products liability law:
Theories of Liability
| Theory | Description |
|---|---|
| Strict Liability | Manufacturing defects |
| Negligence | Design or warning defects |
| Breach of Warranty | Express and implied |
Statute of Limitations
- Generally 3 years from injury
- Discovery rule may apply
- Statute of repose for some products
Test Your Knowledge
Under New York's pure comparative negligence system, what happens if a plaintiff is found 80% at fault?
A
B
C
D
Test Your Knowledge
Are punitive damages insurable in New York?
A
B
C
D