--- title: "Trace the government restriction through the contract" description: "New York decisions show why the exact order, performance window, force-majeure clause, refund terms, and notice deadline matter when a government action disrupts a contract." canonical: "https://spot.insure/coverage/contract-frustration/new-york" page-type: "coverage-state-guide" updated-at: "2026-09-28" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/coverage/contract-frustration/new-york) # Trace the government restriction through the contract In New York, a government restriction can excuse a specifically affected obligation when the contract says so, but temporary closure, later reopening, and payment carve-outs can limit relief. Compare the exact order and dates with the contract’s promised performance, notice rule, and refund or termination remedy before asking whether a policy responds.[^1][^2] **Coverage:** [Contract frustration](/coverage/contract-frustration) · [New York](/coverage/states/new-york) ## What Is Contract Frustration? Contract frustration may fit your business when an international contract is exposed to political disruption or government action. If your main risk is a customer who cannot pay, compare trade-credit coverage instead. [Read the national Contract frustration guide](/coverage/contract-frustration). ## What to Watch for in New York ### Measure the blocked period against actual substitute performance In a 2024 Appellate Division case, state restrictions fully stopped a New York City tourism retailer’s in-person business for a period; the court applied the lease’s force-majeure clause for those fully closed days, then allowed rent again once curbside and in-store service resumed. For your contract, record the order, location, dates, permitted alternatives, and the specific promised act affected. A restriction or resulting loss of revenue alone does not establish that your policy covers the loss.[^1] ### Read payment and termination language beside the event clause New York commercial-lease decisions enforced express rent-payment exclusions even where a force-majeure clause listed government controls. A clause excusing delay may not cancel a payment obligation or allow termination. Ask the broker to compare the policy’s insured event, covered loss, and waiting period with each relevant contract remedy; state contract law does not decide insurance coverage.[^3][^4] ### Track notice deadlines and nonrefundable amounts separately In Nelkin, a New York wedding-venue contract covered government regulations but required written notice within 10 days after learning of the basis for termination; it promised a refund only of refundable deposits and separately labeled a booking fee nonrefundable. The court awarded less than the full amount paid. List deposits, cancellation charges, notice recipients, and deadlines before valuing a possible loss.[^2] ## Who Regulates Insurance in New York **New York State Department of Financial Services.** New York DFS supervises insurance companies and producers, administers insurance law and accepts consumer complaints about property and casualty policies, including commercial insurance.[^5][^6][^7][^8] - [Regulator website](https://www.dfs.ny.gov/) - [License lookup](https://myportal.dfs.ny.gov/nylinxext/elprsmain.alice) - [File a complaint](https://myportal.dfs.ny.gov/web/guest-applications/consumer-complaint) - Phone: 800-342-3736 ### Surplus-Lines Tax and Stamping Office **Reported tax rate:** 3.6% of gross premium, less returned premium; ELANY stamping fee is 0.15% through 2026 and 0.17% for policies incepting on/after Jan. 1, 2027 When New York is the insured’s home state, excess-line tax is 3.6% of gross premium less returned premium. ELANY’s September 20, 2026 bulletin sets a 0.15% stamping fee through December 31, 2026 and 0.17% for policies incepting on or after January 1, 2027; statutory search requirements and guaranty-fund protection depend on the applicable New York excess-line rules.[^9][^10][^11][^12] [Excess Line Association of New York](https://www.elany.org/) ## Providers With Documented State Licenses No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. [Check the regulator’s license lookup](https://myportal.dfs.ny.gov/nylinxext/elprsmain.alice) and confirm availability with a provider when requesting a quote. ## Questions to Ask Before You Buy in New York 1. Which exact government order, jurisdiction, and dates prevented the named party from performing the promised contract term, and what alternatives remained available? 2. Does the contract separately address government action, delayed performance, payment, termination, refunds, notice, and nonrefundable fees? 3. Which policy wording identifies the insured event and resulting financial loss, and what evidence must be provided to the insurer? ## Contract Frustration in New York: FAQ ### Does a New York government order automatically trigger contract-frustration insurance? No. New York contract decisions may help explain the parties’ contractual rights, but they do not establish policy coverage. Compare the order and resulting loss with the actual insured-event and claim wording.[^1] ### What if performance resumed after the restriction ended? A 2024 New York appellate decision limited force-majeure relief to the period when a retailer was required to suspend operations; relief did not continue once service alternatives reopened. Keep dates and evidence of permitted and actual substitute performance.[^1] ## Contract Frustration in Other States - [Alabama](/coverage/contract-frustration/alabama) - [Alaska](/coverage/contract-frustration/alaska) - [Arizona](/coverage/contract-frustration/arizona) - [Arkansas](/coverage/contract-frustration/arkansas) - [California](/coverage/contract-frustration/california) - [Colorado](/coverage/contract-frustration/colorado) - [Connecticut](/coverage/contract-frustration/connecticut) - [Delaware](/coverage/contract-frustration/delaware) - [District of Columbia](/coverage/contract-frustration/district-of-columbia) - [Florida](/coverage/contract-frustration/florida) - [Georgia](/coverage/contract-frustration/georgia) - [Hawaii](/coverage/contract-frustration/hawaii) - [Idaho](/coverage/contract-frustration/idaho) - [Illinois](/coverage/contract-frustration/illinois) - [Indiana](/coverage/contract-frustration/indiana) - [Iowa](/coverage/contract-frustration/iowa) - [Kansas](/coverage/contract-frustration/kansas) - [Kentucky](/coverage/contract-frustration/kentucky) - [Louisiana](/coverage/contract-frustration/louisiana) - [Maine](/coverage/contract-frustration/maine) - [Maryland](/coverage/contract-frustration/maryland) - [Massachusetts](/coverage/contract-frustration/massachusetts) - [Michigan](/coverage/contract-frustration/michigan) - [Minnesota](/coverage/contract-frustration/minnesota) - [Mississippi](/coverage/contract-frustration/mississippi) - [Missouri](/coverage/contract-frustration/missouri) - [Montana](/coverage/contract-frustration/montana) - [Nebraska](/coverage/contract-frustration/nebraska) - [Nevada](/coverage/contract-frustration/nevada) - [New Hampshire](/coverage/contract-frustration/new-hampshire) - [New Jersey](/coverage/contract-frustration/new-jersey) - [New Mexico](/coverage/contract-frustration/new-mexico) - [North Carolina](/coverage/contract-frustration/north-carolina) - [North Dakota](/coverage/contract-frustration/north-dakota) - [Ohio](/coverage/contract-frustration/ohio) - [Oklahoma](/coverage/contract-frustration/oklahoma) - [Oregon](/coverage/contract-frustration/oregon) - [Pennsylvania](/coverage/contract-frustration/pennsylvania) - [Rhode Island](/coverage/contract-frustration/rhode-island) - [South Carolina](/coverage/contract-frustration/south-carolina) - [South Dakota](/coverage/contract-frustration/south-dakota) - [Tennessee](/coverage/contract-frustration/tennessee) - [Texas](/coverage/contract-frustration/texas) - [Utah](/coverage/contract-frustration/utah) - [Vermont](/coverage/contract-frustration/vermont) - [Virginia](/coverage/contract-frustration/virginia) - [Washington](/coverage/contract-frustration/washington) - [West Virginia](/coverage/contract-frustration/west-virginia) - [Wisconsin](/coverage/contract-frustration/wisconsin) - [Wyoming](/coverage/contract-frustration/wyoming) [Other Coverage in New York](/coverage/states/new-york) ## Sources [^1]: [Experience NY Now Inc. v. 126 W. 34th St. Assoc. L.L.C., 2024 NY Slip Op 00675](https://www.nycourts.gov/reporter/3dseries/2024/2024_00675.htm) — New York State Law Reporting Bureau, Appellate Division, First Department; 224 A.D.3d 441; decided February 8, 2024; pp. 1–2, government PAUSE restrictions, lease force-majeure clause, full closure and reopening dates; published official opinion. Accessed 2026-09-28. [^2]: [Nelkin v. Wedding Barn at Lakota’s Farm, LLC, 2020 NY Slip Op 20371](https://www.nycourts.gov/Reporter/3dseries/2020/2020_20371.htm) — New York State Law Reporting Bureau, Civil Court of the City of New York, Queens County; 72 Misc. 3d 1086, 1091–1096; decided June 29, 2020; contract event coverage, written notice within 10 days, refundable deposits, nonrefundable booking fee, judgment; trial-level decision applying 2020 executive orders. Accessed 2026-09-28. [^3]: [CW A&P Mamaroneck LLC v. PFM WC-1, LLC, 2022 NY Slip Op 50203(U)](https://www.nycourts.gov/reporter/3dseries/2022/2022_50203.htm) — New York State Law Reporting Bureau, Supreme Court, Westchester County; 74 Misc. 3d 1222(A); decided March 16, 2022; lease §§4.01(a), 22.08, governmental regulations and express rent-payment exclusion; trial-level decision. Accessed 2026-09-28. [^4]: [A/R Retail LLC v. Hugo Boss Retail, Inc., 2021 NY Slip Op 21139](https://www.nycourts.gov/Reporter/3dseries/2021/2021_21139.htm) — New York State Law Reporting Bureau, Supreme Court, New York County; 72 Misc. 3d 627, 630–647; decided May 19, 2021; commercial lease, government restrictions, accommodations, force-majeure delay language excepting payments; trial-level decision. Accessed 2026-09-28. [^5]: [New York State Department of Financial Services](https://www.dfs.ny.gov/) — New York State Department of Financial Services; Official regulator homepage.. Accessed 2026-09-28. [^6]: [Who We Supervise](https://www.dfs.ny.gov/who_we_supervise) — New York State Department of Financial Services; DFS describes insurance oversight and provides links to company and producer searches.. Accessed 2026-09-28. [^7]: [Insurance License Search](https://myportal.dfs.ny.gov/nylinxext/elprsmain.alice) — New York State Department of Financial Services; DFS portal performs public insurance producer license searches; it displays a CAPTCHA to limit automated access.. Accessed 2026-09-28. [^8]: [Consumer Complaints](https://myportal.dfs.ny.gov/web/guest-applications/consumer-complaint) — New York State Department of Financial Services; Official portal files insurance complaints for health, life and property/casualty insurance.. Accessed 2026-09-28. [^9]: [New York Insurance Law §2118(d)(1)](https://www.nysenate.gov/legislation/laws/ISC/2118) — New York State Senate; Current statutory text: 3.6% of gross premiums less returned premium when New York is the insured’s home state.. Accessed 2026-09-28. [^10]: [ELANY Bulletin 2026-20: Notice of Change in Stamping Fee](https://www.elany.org/docs/default-source/bulletins/stamping-fee-change-09222026.pdf?sfvrsn=169bd4c3_3) — Excess Line Association of New York; September 20, 2026 bulletin: 0.17% applies to policies incepting from Jan. 1, 2027; endorsements on policies incepting Jan. 1, 2023–Dec. 31, 2026 retain 0.15%; excess-line tax remains 3.6%.. Accessed 2026-09-28. [^11]: [New York Insurance Law §2118](https://www.nysenate.gov/legislation/laws/ISC/2118) — New York State Senate; Excess-line broker duties and filing requirements; §2118(a) due care; exceptions should be applied only where statutory conditions are met.. Accessed 2026-09-28. [^12]: [New York Insurance Law §2118](https://www.nysenate.gov/legislation/laws/ISC/2118) — New York State Senate; Excess-line statutory duties and policies; source is used for placement context. No state-specific guaranty cap/note included.. Accessed 2026-09-28. [^13]: [Licenses](https://www.at-bay.com/licenses/) — At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21. [^14]: [Licenses and Carriers](https://www.coalitioninc.com/legal/licenses) — Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535.. Accessed 2026-09-22. [^15]: [Insurance Producer Licenses](https://www.corgi.insure/broker-licenses) — Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown.. Accessed 2026-09-28. [^16]: [About Hiscox US Insurance](https://www.hiscox.com/about-hiscox-insurance) — Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16. [^17]: [Insurance Licenses by State](https://www.techinsurance.com/legal/licenses) — TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number.. Accessed 2026-09-28. [^18]: [Licenses](https://www.vouch.us/legal/licenses) — Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict.. Accessed 2026-09-15. Updated 2026-09-28. This guide is informational and does not determine whether a policy is available or meets your needs. [Editorial policy](/editorial-policy). To suggest a correction, [contact Spot](/contact) with a supporting source. ## Agent and Developer Resources - [Markdown page](https://spot.insure/coverage/contract-frustration/new-york.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://spot.insure/llms.txt)