(1) Workmen's compensation insurance is required by statute. A certified copy of this policy shall be furnished to the division and it shall provide that at least 10 days notice be given to the Division of Housing and Community Renewal, 2 World Trade Center, New York, New York 10047 in event such policy is to be cancelled. If it should not be practicable to furnish a certified copy of policy, division may give its consent to a waiver of this requirement provided a certificate of insurance from insurance company is furnished.

(2) Authority must include coverage for authority members under workmen's compensation policy, covering any injury to member of authority while engaged in duties on behalf of authority. To provide for the coverage, authority must adopt a resolution stating that members of authority are covered under authority's compensation policy while engaged in duties as members of authority. A certified copy of this resolution shall be forwarded to division. In addition to resolution referred to above, authority shall request insurance carrier to include in compensation policy, endorsement referred to in compensation manual of rating organization as “Elective or Appointive Officers of Municipal Corporations, or Other Political Subdivisions Endorsement”.

(1) Office and authority operation. Authority shall carry public liability insurance with limits of at least $100/300,000 for bodily injury which should cover premises occupied as office of authority, and should cover authority in connection with claims for negligence as a result of activities of any of its members or employees. Authority shall have this policy endorsed to name division as an additional insured.

(2) Acquired properties. Where authorities acquire property for slum or offsite clearance and related programs and continue to operate these properties before demolition, they shall carry public liability insurance with limits of $100/300,000 for bodily injury. This public liability policy shall be obtained at time of acquisition of first such property, with an endorsement providing for automatic coverage of newly acquired properties during a period of 30 days after such acquisition, subject to report to insurance carrier of such newly acquired property and payment of premium therefore except where such property already has an insurance policy in force, such policy may be continued but additional coverage up to limits set in this Subpart must be secured. In event elevators are located in any of these properties, they shall be included in coverage of public liability policy in same limits as above.

(3) Project site. Public liability policy carried by authority shall include all property acquired for site of project, including vacant land, and including any elevators located in any structure on site. As demolition of structures on project site goes ahead during preconstruction period, the owners, landlords and tenants public liability policy shall be endorsed for premium charge for vacant land only, and shall continue in force until the owners, landlords and tenants public liability policy for the operating period is obtained, as noted in Subpart 1629-4.

(4) Owner's contingent (protective) liability insurance. Authority, before any contractor commences operations on project site (with exception of architectural contractor) shall obtain an owner's contingent public liability policy with limits of $100/300,000 for bodily injury. This policy shall be obtained in advance of operations of any test pit and boring, demolition, or any other construction contractors, and shall cover authority's liability for operations of any such contractors. The division recommends that owner's contingent liability policy also include property damage coverage with limits of at least $25/50,000. Authority shall obtain this coverage in accordance with section 1630-1.1.

(1) Owned vehicles—public liability. Any vehicle owned by authority shall be covered by public liability insurance with limits of at least $100/300,000 against claims for bodily injuries and/or death to one or more persons, and with a limit of at least $5,000 in respect to damage to property of others.

(2) Owned vehicles—comprehensive. Authority shall obtain comprehensive fire and theft coverage for all vehicles owned by authority.

(3) Owned vehicles—collision. The division does not recommend carrying of collision insurance covering damage by collision or upset to vehicles owned by authority. Except in unusual circumstances, such coverages will not be approved.

(4) Employees' vehicles. In respect to automobiles owned by employees and members of authority, and used by them on behalf of authority, the latter shall obtain protection with limits of $100/300,000 for bodily injury and $5,000 for property damage under a blanket nonownership automobile liability policy, and shall require those employees or members of authority who operate their own automobiles on behalf of authority, to supply evidence of their personal automobile liability coverage.

(1) After execution of loan and subsidy contract and before receipt by authority of any funds for its project from division or other source, authority shall obtain a fidelity bond providing coverage for loss occasioned by misappropriation, misapplication, unfaithful performance, dishonesty or other wrongful abstraction and/or dishonest acts by its employees and members. Authority will be guided by schedule of positions and amounts to be covered in various positions which schedule for preconstruction and construction periods appears hereafter. If appended schedule does not contain a description of every position existing at authority, division will advise amount to be carried for such position upon application of authority. It is a requirement of the division that every employee and member of the authority shall be covered under bond.

(2) The form of bond required by authority is known by surety companies as form NYSDH #1. A certified copy of fidelity bond, together with copies of all endorsements increasing and decreasing amounts of bond, and all endorsements adding or eliminating classes of employees covered under bond, shall be forwarded to division.

(3) Bond form NYSDH #1 provides for substitution of alternates without additional charge. However, in order to designate the principals in various positions, such as check signer and countersigner and their alternates, a resolution of the authority is required. This resolution should designate check signer (ordinarily the executive head), counter signer, voucher certifier if necessary, and should designate alternates to act in absence of officials so designated. A certified copy of resolution must be forwarded to division as soon as adopted by authority.

(4) Alternates should not be listed in bonds, and are automatically covered without charge. No person should be bonded under more than one position, but rather should be bonded in largest amount called for on schedule if duties fall into more than one category. Title of position should be designated in bond and not name of person holding position.

(5) The fidelity bond should be issued for three years at appropriate savings in premium cost, and quotations of bidders for this coverage should be obtained on this basis in accordance with requirements of section 1630-1.1.

(6) Schedule of uniform fidelity bond amounts to be carried by authorities.

(7) If actual exposures develop which are less than the coverage provided above, or if the authority recommends different coverages due to exceptional circumstances, the authority should consult with the Division of Housing and Community Renewal for necessary changes.

(8) Operation of old acquired properties before receipt of construction funds, will fall under preconstruction period.

(1) Office contents. As soon as authority establishes an office, a fire and extended coverage insurance policy shall be obtained in an amount adequate to division and authority. Policy shall include coverage for all office equipment, supplies, records and cost of their reproduction, and personal property of members and employees. This policy shall be written in name of authority and Division of Housing and Community Renewal.

(2) Acquired properties. In the case of acquired properties, no fire insurance is to be carried except under unusual circumstances.