The Real Risks of Running a Business in NYC, and How to Insure Against Them

1. THE REAL RISKS OF RUNNING A BUSINESS IN NYC, AND HOW TO INSURE AGAINST THEM

2. New York City is one of the world’s most dynamic places to launch or grow a business. With unmatched access to talent, capital, and customers, it’s a dream market for many entrepreneurs. But NYC’s promise comes with a price—significant risk. From legal exposure to infrastructure challenges, running a business in this city demands smart planning. One of the smartest moves? Protecting your investment with the right NYC Business Insurance that’s tailored to the city’s unique risks and requirements.

3. WHY NYC IS A HIGH- RISK ENVIRONMENT New York City presents a unique set of challenges that amplify business risk. With its dense population landscape, accidents and liability claims are more likely to occur. Real estate is expensive, and lease agreements often include strict insurance requirements. Add in extreme weather events (like hurricanes), aging infrastructure, and a notoriously litigious environment, and you’ve got the perfect storm of operational threats. and competitive flooding and

4. COMMON RISKS FACED BY NYC BUSINESSES While all businesses face some form of risk, those operating in NYC often experience a heightened level of exposure. Common threats include: Property Damage: vandalism are frequent risks—especially in older or high-traffic buildings. Customer Injuries: increases the chance accidents and liability claims. Employee Disputes: NYC’s complex labor laws make workplace disputes more likely to escalate legally. Cyber Threats: Businesses handling customer data or online payments face growing risks from hackers. Fires, floods, and Heavy foot slip-and-fall traffic of

5. INDUSTRY-SPECIFIC RISK EXAMPLES Different NYC industries face different kinds of challenges. Here’s how some common sectors are impacted: Restaurants & Hospitality: Risks include fire hazards, food safety violations, liquor liability, and kitchen injuries. Retail Stores: High foot traffic brings increased risk of theft, shoplifting, or customer injuries on the premises. Contractors & Construction Firms: Equipment damage, workplace accidents, and third-party injury claims are daily risks on job sites. Professional Services (Law, Tech, Finance): These businesses face liability from client disputes, errors & omissions, and cyberattacks.

6. NYC LEGAL REQUIREMENTS FOR BUSINESS INSURANCE Certain insurance policies are mandatory in NYC, either by law or lease. Here's what’s commonly required: Workers’ Compensation Insurance: Required for most businesses with employees. Disability Benefits Insurance: New York State mandates this coverage for employees in case of off-the-job injuries or illnesses. Commercial Auto Insurance: Legally required if your business owns or operates vehicles. General Liability Insurance: Often required by landlords or vendors before you can sign a lease or contract.

7. CORE INSURANCE POLICIES TO CONSIDER Even beyond what’s legally required, several types of insurance recommended for NYC businesses: General Liability Insurance: Covers bodily injury, property damage, and legal fees from third-party claims. Commercial Property Insurance: Protects your physical location, equipment, and inventory from damage or theft. Workers’ Compensation Covers employee injuries and medical expenses. Business Interruption Replaces lost income during temporary shutdowns caused by covered events like fires or flooding. are strongly Insurance: Insurance:

8. THE ROLE OF UMBRELLA INSURANCE IN NYC Umbrella insurance provides an extra layer of protection that kicks in after your base policy limits are reached. Given the high value of lawsuits and settlements in NYC, this can be a financial lifesaver. For example, if your general liability insurance covers up to $1 million, an umbrella policy can extend that to $2 million or more, offering peace of mind in case of large-scale legal claims.

9. TIPS TO CHOOSE THE RIGHT INSURANCE PLAN NYC is unlike any other market—so your insurance plan shouldn’t be one-size-fits-all. Here’s how to get it right: Work with a Local Broker: They understand NYC’s legal landscape, requirements, and industry-specific risks. Customize Coverage: Make sure your policy fits your business model, property size, and workforce. Review Annually: As your business grows or evolves, your insurance needs may change. Don’t let outdated coverage leave you exposed. Bundle Policies When Possible: Many insurers offer discounts for bundling general liability, property, and cyber coverage together. real estate

10. FINAL TAKEAWAYS Running a business in New York City means embracing its energy, ambition, and complexity. But it also means preparing for a wide range of risks—some of which you might not see coming. The right business insurance doesn’t just protect your assets; it protects your future. By investing in a customized, comprehensive insurance plan, you can focus less on what could go wrong—and more on what’s next for your business.

11. THANK YOU www.igmbrokerage.com (718) 931-4900