If you’re a contractor in New York, you already know how complicated—and expensive—insurance can be. Between strict labor laws, demanding project owners, and the constant risk of accidents, your business is exposed on many fronts. Contractors often ask the same questions about three key coverages: general liability, umbrella liability, and workers’ compensation.
Below, we’ve gathered 15 of the most common questions New York contractors have about these policies, along with clear answers to help you protect your business.
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General Liability Questions
1. What exactly does general liability insurance cover?
General liability protects your business if your work causes bodily injury, property damage, or personal/advertising injury to others. For contractors, this usually means injuries to third parties, damage to client property, or lawsuits related to your completed work.
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2. How does New York Labor Law affect my general liability?
New York’s Labor Laws 240, 241, and 200 make contractors and building owners liable for most construction-related accidents, especially falls from heights. Many insurers exclude or heavily restrict this coverage, which is why having the right policy is crucial.
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3. What is a “completed operations” exposure?
Once a project is finished, your liability doesn’t end. If your work later causes damage or injury (for example, faulty wiring leading to a fire), you could face a completed operations claim. Your policy must specifically include this coverage.
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4. Do subcontractors need to carry their own general liability?
Yes—without it, you’re fully responsible for their mistakes. Every subcontractor should provide a certificate of insurance naming you as an additional insured. Otherwise, their claims may fall back on you.
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5. How much general liability coverage should I carry?
Most New York contractors carry at least $1M per occurrence and $2M aggregate. But many project owners now require higher limits, which is where an umbrella policy comes in.
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Umbrella Liability Questions
6. What does an umbrella policy cover?
Umbrella liability sits on top of your general liability, commercial auto, and employers’ liability policies. It provides extra limits of protection if a claim exceeds the underlying policy’s limit.
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7. Why do contractors in New York often need umbrellas?
Because claim costs here are higher than almost anywhere else. With Labor Law lawsuits routinely reaching into the millions, a $1M general liability policy is often not enough. An umbrella ensures your business isn’t bankrupted by one big claim.
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8. How much umbrella coverage do I need?
It depends on your project size and contractual requirements. Many mid-sized contractors carry $5M, while larger firms may need $10M or more. GCs and owners often specify the required amount in contracts.
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9. Are umbrella policies all the same?
No. Some umbrellas exclude New York Labor Law coverage or have hidden restrictions. Always review the fine print—otherwise you might think you’re protected, only to find an exclusion blocks coverage when you need it most.
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10. Can an umbrella cover subcontractor work?
Yes, but only if the subcontractor is properly insured and your contract requires them to name you as an additional insured. Otherwise, your umbrella could end up paying for their mistakes.
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Workers’ Compensation Questions
11. Who needs to carry workers’ compensation in New York?
Any business with employees—even one part-timer—must carry workers’ comp. In construction, the rules are even stricter: subs and day laborers are often considered your employees for comp purposes if they’re uninsured.
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12. Are 1099 contractors covered by my policy?
If they work under your direction and do not have their own valid workers’ comp, the state may consider them your employees. If they get hurt, you could be responsible. This is one of the biggest areas of confusion (and surprise premium charges) for contractors.
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13. How are workers’ comp premiums calculated?
Premiums are based on payroll, job classification codes, and your company’s claims history. For contractors, rates vary depending on the trade—for example, carpentry is more expensive than clerical work. Insurers audit your records each year to verify payrolls and classifications.
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14. Can I reduce my workers’ comp costs?
Yes. You can:
• Properly classify employees and subs
• Maintain strong safety programs to reduce injuries
• Work with a broker who challenges unfair audit findings
• Consider a pay-as-you-go program to avoid big audit bills
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15. What happens if I don’t carry workers’ comp?
In New York, penalties are severe. You can face fines, stop-work orders, lawsuits, and even personal liability if an uninsured worker is injured. For contractors, operating without comp is a risk that can destroy your business.
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Why Contractors Choose BGES Group
Having the right policies is only part of the solution. You need a broker who understands New York construction inside and out—someone who knows the difference between a policy that looks good on paper and one that actually protects you in court.
That’s where BGES Group comes in.
We specialize in New York construction insurance—it’s not a sideline, it’s our focus. Contractors work with us because:
• We know the risks you face. Labor Law claims, subcontractor issues, audits—this is our daily world.
• We deliver personal, boutique-style service. You won’t be stuck with call centers or shuffled between departments. You’ll deal directly with someone who knows your account.
• We handle the details. From reviewing subcontractor certificates to making sure your umbrella covers Labor Law, we catch what others miss.
• We fight for you. Whether it’s negotiating premiums, fixing audits, or helping during a claim, we’re in your corner.
• We give peace of mind. Our contractors tell us they finally sleep better knowing their insurance program is solid.
While many agencies have become “factory-like” and impersonal, BGES Group still works the old-fashioned way: one contractor at a time, with care, speed, and expertise.
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Contact BGES Group Today
Don’t wait until a claim or audit exposes gaps in your coverage. Protect your company with the right liability and workers’ comp program designed specifically for New York contractors.
📞 Gary Wallach
BGES Group
Phone: 914-806-5853
Email: bgesgroup@gmail.com
🌐 Website: http://www.bgesgroup.com
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👉 New York contractors, you build projects that last. Let BGES Group build the insurance protection your business deserves.