For New York contractors, insurance renewal is not just a routine task—it’s a critical opportunity to reassess coverage, ensure compliance, and protect your business from potential financial disasters. With the ever-changing landscape of insurance, labor laws, and market conditions, staying informed is key. Here are ten things you must consider when renewing your General Liability, Umbrella Liability, and Workers’ Compensation insurance policies.
1. Labor Law Coverage: Do You Have Proper Protection?
New York’s Labor Laws 240 and 241 make contractors highly vulnerable to expensive lawsuits. If a worker is injured on your project, you could be held liable—even if you weren’t negligent. Many insurance policies exclude labor law coverage or have limitations that could leave you exposed. Make sure your policy explicitly covers these laws.
2. Action Over Coverage: Avoid Costly Gaps
An “Action Over” claim arises when a subcontractor’s employee sues the general contractor or project owner after a workplace injury. If your policy doesn’t include Action Over coverage, your business could be responsible for millions in legal costs and settlements. Always confirm that your General Liability and Umbrella Liability policies provide this protection.
3. Additional Insured Requirements: Are You Meeting Contract Obligations?
Many project owners and general contractors require subcontractors to list them as additional insureds on their policies. Failure to meet these requirements can result in contract breaches and legal disputes. Review your policies to ensure compliance with contract terms, including primary and non-contributory coverage and waivers of subrogation.
4. Rising Insurance Costs: Shop Around for the Best Rates
The New York insurance market is becoming increasingly challenging, with major carriers like State Farm and Berkshire Direct exiting or restricting coverage for contractors. Premiums are rising, but not all carriers charge the same rates. Working with an expert broker can help you find the best pricing and coverage options.
5. Experience Modification Rate (EMR): Is Your Workers’ Comp Rate Too High?
Your Experience Modification Rate (EMR) significantly impacts your Workers’ Compensation insurance costs. A high EMR means higher premiums and fewer job opportunities, as some clients may reject bids from contractors with poor safety records. Implementing strong safety programs and risk management strategies can help keep your EMR low.
6. Misclassification of Employees and Payroll: Avoid Costly Audits
Insurance carriers conduct payroll audits to ensure that your Workers’ Compensation premiums align with your actual workforce. If your employees are misclassified (e.g., treating workers as clerical when they perform manual labor), you could face huge penalties and back charges. Review your classifications before renewing your policy.
7. Umbrella Liability Policy: Is Your Coverage Adequate?
Many contractors carry an Umbrella Liability policy to provide additional protection beyond their General Liability limits. However, some policies exclude labor law claims or offer insufficient limits. Considering the multi-million-dollar verdicts common in New York, contractors should ensure their Umbrella coverage is robust enough to protect their assets.
8. Subcontractor Insurance Compliance: Don’t Take Risks
If your subcontractors lack proper insurance, their claims could fall on your policy, driving up your premiums or leading to denied coverage. Always verify that subcontractors carry adequate insurance, list you as an additional insured, and provide proof of primary and non-contributory coverage.
9. Policy Exclusions: Read the Fine Print
Not all policies provide the same coverage. Some contain exclusions that could leave you vulnerable, including:
• Height restrictions (excluding work above certain elevations)
• Residential exclusions (no coverage for residential projects)
• Subcontractor exclusions (claims arising from subcontractor work are not covered)
Before renewing, carefully review your policy’s exclusions and endorsements to avoid unexpected coverage gaps.
10. Work with an Expert Broker: Get the Right Coverage at the Best Price
Navigating the complexities of insurance policies, contract requirements, and regulatory changes is not something contractors should do alone. Partnering with an experienced broker who specializes in New York construction insurance ensures that you get the best coverage, competitive pricing, and expert guidance tailored to your business needs.
5 Reasons New York Contractors Should Turn to BGES Group for Their Business Insurance Needs
Choosing the right insurance provider is crucial for protecting your contracting business. BGES Group stands out as a premier insurance brokerage specializing in New York construction insurance. Here’s why contractors trust us:
1. Construction Insurance Experts
Unlike general insurance agencies, BGES Group specializes in construction insurance, understanding the unique risks and challenges New York contractors face. We ensure your policies include critical protections like Labor Law coverage, Action Over coverage, and Additional Insured endorsements.
2. Access to Exclusive Programs
We work with a wide network of carriers, including specialized programs for:
• General Contractors
• Roofers and Demolition Contractors
• Electricians, Plumbers, and HVAC Contractors
• High-risk trades that struggle to find affordable coverage
Our ability to secure coverage even for high-risk industries gives us a major advantage over other brokers.
3. Competitive Pricing & Cost Savings
At BGES Group, we shop the market for the best pricing and coverage combinations. Our clients often save thousands on their annual premiums while improving their coverage. With insurance costs on the rise, working with a broker who knows where to find savings is more important than ever.
4. Hands-On, Boutique-Style Service
When you work with BGES Group, you don’t just get an insurance broker—you get a trusted advisor. We provide:
• Personalized risk assessments
• Expert policy reviews and contract compliance checks
• Proactive claims management to help minimize losses
Larger brokers treat contractors like numbers, but we provide dedicated, white-glove service that keeps your business protected.
5. Fast, Hassle-Free Policy Handling
Time is money in the construction industry. BGES Group handles insurance quickly and efficiently, ensuring that your certificates, policy changes, and renewals are processed without delay. Need a last-minute certificate to secure a job? We deliver fast turnarounds so you never lose out on work due to paperwork delays.
Contact BGES Group Today
Renewing your insurance shouldn’t be a stressful process. Let BGES Group handle the complexities while you focus on growing your business. Whether you need General Liability, Umbrella Liability, or Workers’ Compensation insurance, we have the expertise to protect your company and save you money.
📞 Call Gary Wallach at (914) 806-5853
📧 Email: bgesgroup@gmail.com
🌍 Visit: www.bgesgroup.com
Don’t wait until it’s too late—get the right coverage, at the right price, from the experts who know New York construction insurance inside and out!