The "Notice to Proceed" Bottleneck: Why Your Engineering Firm’s Insurance is Stalling Your NYC Contract
Winning a New York City or State government contract is a massive milestone for any engineering firm. Whether it’s a structural project with the DDC, a system upgrade for NYCHA, or a consulting role with DCAS, the technical bid is only half the battle.
For many firms, the real challenge begins after the award. You have the talent, the blueprints, and the team ready to go—but you’re stuck in the Exigis or RiskWorks portal because your insurance certificates keep getting rejected.
At OBVI (Olive Branch Ventures Inc.), we see this every day. Here is why your standard insurance might be failing the "Schedule A" test and how to fix it.
1. The "Action Over" Exclusion: The Silent Deal-Killer
Most national insurance carriers include a "Labor Law" or "Action Over" exclusion to avoid the high costs of New York’s Labor Law 240/241. If your General Liability policy has this exclusion, you will be denied site access immediately. Engineering firms often think they don't need it because they "don't do the heavy lifting," but if your staff is on-site for inspections, the City demands this coverage.
2. Professional Liability (E&O) Gaps
City auditors look for very specific language in your Professional Liability policy. Common reasons for rejection include:
Vicarious Liability: Does your policy cover the work of sub-consultants?
Residential Exclusions: Many policies exclude "Residential" work. If you are working on a NYCHA housing project, a standard policy may be void.
Tail Coverage: Does your policy have the required Extended Reporting Period (ERP) mandated by the contract?
3. The New Standard: Cyber Liability
It isn’t just for tech companies anymore. New York government contracts now frequently mandate Cyber Liability for engineers. Why? Because you hold sensitive blueprints, infrastructure data, and municipal network access. If your Cyber policy doesn't meet the specific limits in your "Schedule A" exhibit, your "Notice to Proceed" will sit on a desk gathering dust.
4. AM Best Ratings Matter
You could have the perfect policy, but if your insurance carrier is rated "B++" or lower, the City will likely reject it. Most NYC agencies require a carrier rating of A- VII or higher.
How OBVI Gets You Out of the Portal and Onto the Job Site
We don’t just "sell insurance"—we specialize in Government Procurement Compliance. We understand that for an engineer, time is money. A delay in insurance approval is a delay in billing.
Our Process for Engineers:
Schedule A Audit: Send us your contract’s insurance exhibit. We perform a meticulous gap analysis to see exactly where your current policy fails.
Bulletproof Submissions: We work with A-Rated carriers to secure the "Action Over," "Primary & Non-Contributory," and "Waiver of Subrogation" language the City demands.
Portal Navigation: We help you understand exactly what needs to be uploaded to Exigis or RiskWorks to ensure a "Pass" on the first try.
Don’t Wait for the Award to Find Out You’re Not Compliant
If you are preparing a bid for a New York agency, the time to check your insurance is now. Including accurate insurance costs in your proposal ensures your margins are protected and your firm is ready to hit the ground running the moment the contract is signed.
Ready to secure your next project? Contact Olive Branch Ventures Inc. (OBVI) today. Let our risk advisers perform a compliance review on your upcoming bid so you can focus on engineering the future of New York.
Phone: 929-273-1989
Web: www.OliveBranchVenturesInc.com
Email: OliveBranchVenturesInc@gmail.com