When it comes to renewing your insurance policies, staying informed is critical for New York contractors. Both commercial general liability (CGL) and workers’ compensation insurance are essential to protecting your business from costly claims and lawsuits. Here are ten important things to keep in mind during the renewal process:
1. Labor Law Coverage is a Must
In New York, Labor Laws 240 and 241 expose contractors to high liability risks for construction accidents. It’s crucial to have labor law coverage included in your CGL policy to protect against claims stemming from falls and other worksite injuries. Without this coverage, you may be personally liable for damages.
2. Review Additional Insureds Requirements
Most contracts require contractors to list the project owner and general contractor as additional insureds on their liability policies. Ensure your policy meets these requirements and provides adequate primary and non-contributory coverage.
3. Audit Adjustments in Workers’ Compensation
Workers’ compensation premiums are often subject to audits, where your payroll and classification codes are reviewed. Make sure your payroll records are accurate and that all employees are correctly classified to avoid unexpected premium hikes or penalties.
4. Subcontractor Coverage Verification
If you hire subcontractors, ensure they carry their own workers’ compensation and general liability insurance. You may be held liable if a subcontractor’s employee is injured on your job site and they are uninsured or underinsured.
5. General Liability Policy Limits
With rising construction costs and legal risks, confirm that your general liability limits are high enough to cover potential claims. Consider increasing your policy limits or purchasing an umbrella liability policy for additional protection.
6. Know the Impact of Loss History
Insurance carriers look closely at your loss history when renewing policies. A history of frequent claims can lead to increased premiums or even non-renewal. It’s important to implement safety protocols and risk management strategies to minimize claims and improve your renewal terms.
7. Ensure Adequate Coverage for Action Over Claims
Action over claims occur when a subcontractor’s employee is injured, files a workers’ compensation claim, and then sues the general contractor or project owner. Make sure your CGL policy covers action over claims, as these lawsuits can lead to significant payouts.
8. Beware of Exclusions and Gaps in Coverage
Examine your policy for any exclusions that could leave you vulnerable, such as exclusions for certain high-risk activities like roofing or demolition. Ensure your policy fully covers your scope of work, including any niche services your business provides.
9. Verify Compliance with State Regulations
New York has specific insurance requirements for contractors, especially regarding workers’ compensation. Non-compliance can lead to fines, stop-work orders, or lawsuits. Review your coverage to ensure it complies with state laws and contractual obligations.
10. Work with a Specialist Broker
Not all insurance brokers understand the complexities of New York construction insurance. Working with a broker who specializes in contractors’ insurance can help ensure you get the right coverage at competitive rates, avoid costly mistakes, and stay compliant with state regulations.
BGES Group: New York’s Contractor Insurance Specialist
Renewing your general liability and workers’ compensation insurance doesn’t have to be a hassle. BGES Group, led by industry veteran Gary Wallach, specializes in helping New York contractors secure the right insurance solutions. With years of experience and deep knowledge of the construction industry, BGES Group understands the unique challenges contractors face, including labor law coverage, subcontractor verification, and audit preparation.
Whether you’re looking to renew your current policies or explore new options, BGES Group offers personalized service and tailored solutions to meet your needs. Let us help you protect your business and reduce your insurance costs.
Contact Gary Wallach at BGES Group today:
• Phone: 914-806-5853
• Email: bgesgroup@gmail.com
• Website: bgesgroup.com
Get in touch with us to ensure your business has the coverage it needs to thrive in the ever-challenging New York construction industry.