Key Takeaways
- New York commercial property insurance must comply with filed and approved rates
- Commercial policies require specific disclosure of terrorism coverage options under TRIA
- New York has specific requirements for inland marine and ocean marine coverage
- Commercial properties may access NYPIUA when voluntary market coverage is unavailable
- Business interruption and extra expense coverage have specific New York requirements
Last updated: January 2026
New York Commercial Property Insurance
New York regulates commercial property insurance with specific requirements for rates, disclosures, and coverage availability.
Rate Regulation
New York uses prior approval for most commercial property insurance:
Rate Filing Requirements
- Rates filed with DFS before use
- Must be approved before implementation
- Not excessive, inadequate, or unfairly discriminatory
- Based on actuarially justified loss experience
Commercial Rate Filings
| Line | Rate Regulation |
|---|---|
| Commercial Property | Prior approval |
| Commercial Multi-Peril | Prior approval |
| Inland Marine | File and use (some classes) |
| Ocean Marine | Generally exempt |
| Boiler and Machinery | Prior approval |
Terrorism Insurance
TRIA (Terrorism Risk Insurance Act)
- Federal program providing terrorism insurance backstop
- New York insurers must offer terrorism coverage
- Policyholder can accept or reject terrorism coverage
- Disclosure of coverage terms required
Required Disclosures
- Coverage limits for terrorism
- Premium for terrorism coverage
- Right to accept or reject
- Exclusions and limitations
- Federal backstop explanation
Commercial NYPIUA
NYPIUA also serves commercial properties:
Commercial Coverage
- Basic fire and extended coverage
- Building and business personal property
- Higher limits available than residential
- Requires evidence of voluntary market declination
- All admitted insurers share in losses
Excess Lines Insurance
New York allows excess lines (surplus lines) insurance for risks not available in the admitted market:
Excess Lines Requirements
| Requirement | Details |
|---|---|
| Diligent Search | Must document search of admitted market |
| Eligible Surplus Lines Insurer | Must be on DFS approved list |
| Excess Lines Broker | Must use licensed EL broker |
| Excess Lines Tax | 3.6% of premium |
| Disclosure | Must disclose EL status to insured |
Exempt Commercial Purchasers
Large commercial buyers may be exempt from certain requirements:
- Net worth exceeds $20 million, OR
- Annual revenues exceed $50 million, OR
- 500+ employees, OR
- Sophisticated risk management
Business Interruption Insurance
New York has specific requirements for business interruption coverage:
Key Provisions
- Must clearly define covered perils
- Waiting/deductible period disclosed
- Period of restoration defined
- Extended period of indemnity options
- Civil authority coverage requirements
Coverage Elements
| Element | Description |
|---|---|
| Net Income | Lost profits during restoration |
| Continuing Expenses | Ongoing fixed costs |
| Extra Expense | Costs to continue operations |
| Extended Period | Coverage after physical restoration |
Inland Marine Insurance
New York regulates inland marine insurance:
Filing Requirements
- "Filed" classes require rate filing
- "Non-filed" classes have more flexibility
- Nation-wide definition of marine (NAIC)
- Floater policies for movable property
Test Your Knowledge
What is the New York excess lines (surplus lines) tax rate?
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D
Test Your Knowledge
Under TRIA, must New York commercial property insurers offer terrorism coverage?
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B
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D