As a New York contractor, you’ve probably run into the frustrating reality of customer insurance screening services like Docutrax, ISNetworld, Avetta, or Veriforce rejecting your insurance coverage. You submit your certificates of insurance (COI), thinking you’re covered, only to get a dreaded notice: Your insurance does not meet our requirements.

This can cause major headaches. Without passing these screenings, you can’t work on certain projects, lose out on big contracts, and even risk breaching agreements with general contractors or project owners. But why is this happening, and how do you fix it?

At BGES Group, we specialize in solving these exact problems for New York contractors. Whether it’s a coverage issue, a missing endorsement, or a problem with your subcontractor forms, we have solutions to get you approved fast.

Why Are Insurance Screening Services Rejecting Your Coverage?

Third-party risk screening services exist to protect general contractors, project owners, and large corporations from liability issues. They have strict guidelines that your insurance must meet exactly—or they reject it.

Here are some common reasons your insurance fails these screenings:

1. Hard Hammer Subcontractor Forms – Some insurance policies include a Hard Hammer Subcontractor Warranty, which states that if you hire a subcontractor who does not meet all of your policy’s insurance requirements, your policy may not cover claims arising from their work. Many screening services flag this as an issue and reject your coverage.

2. Missing Additional Insured Endorsements – Most contractors are required to provide additional insured endorsements (AI) on a primary and non-contributory basis. If your policy lacks the correct AI forms, screening services will reject it.

3. Lack of Waiver of Subrogation – Many contracts require a waiver of subrogation in favor of the general contractor or project owner. If your policy does not include this, you’ll fail the screening process.

4. Improper Policy Limits – Your general liability, umbrella, or excess policies must meet specific minimum limits. If your limits are too low, you’ll be rejected.

5. Insurance Carrier Not Rated High Enough – Some risk management services only accept insurance from carriers with an A.M. Best rating of A- or better. If your policy is with a lower-rated carrier, it won’t pass screening.

6. Workers’ Compensation or Auto Insurance Non-Compliance – Many screening services require proof of workers’ compensation and commercial auto coverage. If you’re missing these or using a lower-rated carrier, your submission may be denied.

Example: The Hard Hammer Subcontractor Form Nightmare

Let’s say you’re a New York roofing contractor. You have a general liability policy in place, and you submit your insurance to Docutrax for approval. A week later, you get an email:

“Your insurance does not meet our requirements. Please provide a policy without a Hard Hammer Subcontractor Warranty.”

You call your agent, but they say, “Sorry, that’s how your policy is written. We can’t change it.”

Now you’re stuck. Without fixing this issue, you can’t work on your project. The general contractor won’t let you on-site, and your job is delayed.

This is where BGES Group steps in. We understand these roadblocks and know which insurance companies offer policies that meet Docutrax and other screening services’ requirements.

How BGES Group Can Get You Approved

At BGES Group, we specialize in finding insurance solutions that pass customer screening services. If your coverage keeps getting rejected, we can fix it.

Here’s How We Help New York Contractors:

✅ We find policies that eliminate Hard Hammer Subcontractor Warranties.

✅ We make sure you have the correct Additional Insured (AI) endorsements.

✅ We ensure you have Waiver of Subrogation endorsements where required.

✅ We secure policies with the right limits to meet contract requirements.

✅ We work with A-rated insurance carriers to pass all screening criteria.

✅ We provide workers’ comp and commercial auto solutions to meet all requirements.

When you work with BGES Group, we take the guesswork and frustration out of insurance approval. We’ll find you a policy that works, get your coverage approved, and keep your projects moving forward.

Don’t Let Insurance Hold You Back—Call BGES Group Today!

If you’re struggling to get your insurance approved by Docutrax, ISNetworld, Avetta, or Veriforce, you’re not alone. Many New York contractors face this issue—but there’s a solution.

At BGES Group, we’ll find you the right insurance, eliminate your approval problems, and get you back to work fast.

📞 Call Gary Wallach at 914-806-5853

📧 Email bgesgroup@gmail.com

Website www.bgesgroup.com

Don’t let insurance stand in the way of your next job. Call us today and get approved!

Roofing is a dangerous profession, and having the right insurance coverage is crucial for protecting both roofers and their businesses. In this FAQ, we’ll break down the key risks covered by roofers insurance and explain why each is essential.Understanding General Liability Insurance

General liability insurance is a foundational element of any roofer’s insurance policy. It protects against claims of bodily injury or property damage caused by your roofing work. This coverage ensures that if an accident occurs, you won’t be financially ruined by lawsuits or claims.

Imagine a roofer accidentally drops a tool from a rooftop, causing damage to a client’s vehicle parked below. This kind of incident is precisely what general liability insurance is designed to cover, shielding your business from the financial aftermath of such accidents.

Beyond accidents, general liability insurance also plays a crucial role in managing claims of negligence or insufficient work quality. If a client faces property damage due to a mistake in your roofing work, this insurance helps stave off hefty financial repercussions.

A lesser-known aspect of general liability insurance is its ability to cover legal defense costs if a third-party decides to sue your roofing business for damages. It means you won’t have to shoulder the immense burden of legal fees, which can rapidly escalate.

Coverage for Workers’ Compensation

Workers’ compensation is essential for covering medical expenses and lost wages for employees injured on the job. This not only supports your team but also shields your business from potentially devastating lawsuits related to workplace injuries.

In the roofing industry, where employees routinely work at height and handle heavy materials, accidents are an unfortunate reality. Workers’ compensation insurance steps in to address these challenges, offering a safety net for both the employee and the employer.

Consider a scenario where a worker slips and falls off a ladder, leading to a serious injury. Workers’ comp not only ensures that the employee receives adequate medical care but also maintains their income during their recovery period, all while protecting your business from litigation.

Adhering to workers’ compensation laws is not only a legal requirement but also a strategic move. It demonstrates a commitment to employee welfare, fostering trust and a positive work environment that keeps morale high and turnover low.

Protection with Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, offers protection against claims of negligence or mistakes in your work. If an error leads to a financial loss for a client, this coverage can help manage the associated costs.

In a complex field like roofing, misunderstandings and mistakes can occur despite the best of intentions. Professional liability insurance serves as a crucial safeguard against the financial implications of these errors, ensuring that your business stays protected.

A notable benefit of professional liability insurance is its role in covering the ancillary costs associated with claims, such as settlements, judgment awards, and even the expenses of defending your business in court.

Ensuring Coverage with Equipment Insurance

Roofers rely on specialized equipment that’s critical to their work. Equipment insurance provides coverage for the repair or replacement of these tools if they’re damaged or stolen, ensuring your operations can continue smoothly.

Consider the financial impact if a crucial piece of roofing equipment such as a power nailer is stolen. Equipment insurance helps mitigate this risk, allowing for swift replacements without straining your business budget.

Aside from theft, equipment insurance reduces the repercussions of unexpected breakdowns, providing coverage for repairs, which ensures that projects progress smoothly and without interruption from technical difficulties.

The Importance of Commercial Auto Insurance

Roofing businesses often require the use of vehicles to transport materials and employees. Commercial auto insurance covers the vehicles used for business purposes, protecting against accidents, damage, and potential liability claims.

Envision a situation where your roofing van gets into a minor fender bender. Commercial auto insurance kicks in to cover repair costs and any liability issues that might arise, keeping your business running efficiently without unexpected financial setbacks.

A comprehensive commercial auto policy covers not just collisions, but also theft and non-collision-related damage like vandalism, making it an essential component of a roofer’s risk management strategy.

Protecting Your Roofing Business with the Right Insurance

Understanding the coverage provided by roofers insurance is essential for any roofing professional or business. With adequate insurance, you can work with peace of mind, knowing that you’re protected against the many risks associated with the roofing industry.

BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders’ risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability, and group health.  Our commitment to you goes beyond the policies we provide. We are always just a call, text, or email away, ready to assist you, even on weekends. We understand the importance of your business and are here to help you navigate any insurance challenges. 

BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or whatever your issue. We can help!  We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, Logistics Companies, Manufacturers, Recyclers, and Truckers; we can help ANY tri-state business owner. We are considered “Preferred Agents” for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too.  

If you want to speak with us, call Gary Wallach at 914-806-5853, click here to email, or visit our website. 

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

email: bgesgroup@gmail.com

website: http://www.bgesgroup.com

© – Copyright – 2025 – BGES Group
 

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!

Workers’ compensation insurance is a vital part of protecting your business and employees. Whether you operate in New York, New Jersey, or Connecticut, having the right coverage ensures compliance with state laws and financial security in the event of workplace injuries. However, many business owners find themselves frustrated with their current insurance provider due to high premiums, poor service, or claim mishandling.

If you’re unhappy with your current workers’ compensation provider, BGES Group is here to help. As a trusted insurance expert in the Tri-State area, we specialize in securing the best coverage for businesses of all sizes, ensuring competitive pricing and superior service. Below, we outline 10 ways BGES Group can assist you in finding better workers’ compensation coverage.

10 Ways BGES Group Can Help You

1. Lower Your Workers’ Compensation Costs

Many business owners overpay for their workers’ compensation insurance without realizing it. BGES Group has access to specialized programs and multiple carriers, allowing us to find you the most cost-effective policy without compromising on coverage.

2. Provide Access to Exclusive Programs

BGES Group offers unique programs tailored to high-risk industries, such as construction, trucking, and manufacturing. If you’ve been denied coverage or hit with high premiums, we can find a specialized program that suits your needs.

3. Assist in Resolving Claims More Efficiently

If your current provider is slow to process claims or disputes them unfairly, it can put your business at risk. BGES Group works closely with insurers that handle claims efficiently, minimizing disruptions and ensuring injured employees receive the care they need.

4. Ensure You’re Properly Classified

Incorrect classification of employees can lead to higher premiums. Many insurance companies use broad classifications that don’t accurately reflect your business operations. BGES Group will review your classifications to ensure you’re not overpaying due to misclassification.

5. Help You Avoid Audits and Penalties

Insurance audits can be stressful, especially if your provider frequently finds errors that lead to penalties or higher premiums. We help business owners stay prepared for audits and ensure all documentation is accurate, preventing costly surprises.

6. Offer Pay-As-You-Go Workers’ Compensation

Many businesses struggle with large upfront premium payments. BGES Group offers pay-as-you-go workers’ compensation solutions that align with your payroll, making cash flow management easier and reducing the risk of audit adjustments.

7. Provide Personalized Customer Service

Unlike large, impersonal insurance agencies, BGES Group provides a boutique-like experience. You’ll work with knowledgeable experts who understand your industry and are available to answer your questions whenever you need assistance.

8. Help You Comply with State Laws

Each Tri-State state has unique workers’ compensation regulations. Failing to comply can result in hefty fines or legal action. BGES Group ensures your business meets all regulatory requirements, keeping you compliant and protected.

9. Offer Bundled Solutions with Payroll and Group Health Insurance

If you’re looking for a more streamlined approach to managing business expenses, BGES Group can bundle your workers’ compensation insurance with payroll services and group health insurance. This not only simplifies administration but can also lead to cost savings.

10. Secure Coverage for Higher-Risk Businesses

If your business operates in a high-risk industry like construction, asbestos removal, or trucking, you may struggle to find affordable workers’ compensation insurance. BGES Group specializes in securing coverage for businesses that other providers turn away.

Don’t Stay Stuck with the Wrong Insurance Provider!

If you’re unhappy with your current workers’ compensation insurance provider, it’s time to explore better options. BGES Group is committed to helping Tri-State business owners find the right coverage at the best price. Our expert team understands the challenges you face and works diligently to ensure you get the protection and service your business deserves.

Contact BGES Group Today!

• Phone: 914-806-5853

• Email: bgesgroup@gmail.com

• Website: www.bgesgroup.com

Let BGES Group take the frustration out of workers’ compensation insurance. Contact us today for a free consultation and see how we can improve your coverage and save you money!

When it comes to running a business in New York, New Jersey, or Connecticut, ensuring proper workers’ compensation coverage is crucial. Many business owners, especially contractors, often believe the only option available is a state or assigned risk plan. However, BGES Group is here to reveal the wide range of options that can better suit your needs while saving you money and hassle.

Traditional Workers’ Compensation Policies: The Standard Route

Most business owners are familiar with standard workers’ compensation policies offered by insurance companies. These “stand-alone” policies provide guaranteed rates for one year, with fixed monthly premiums. To secure coverage, companies typically require a deposit of up to 25%, with another deposit due upon renewal.

Some insurers also offer pay-as-you-go plans, where premiums are based on actual payroll. This flexibility benefits businesses with fluctuating payrolls, ensuring they only pay for the coverage they need. While this route works for many, it’s far from the only option—especially if your business falls into a higher-risk category.

Payroll and Workers’ Compensation Plans: A Hidden Gem

One lesser-known yet highly effective option is a payroll-integrated workers’ compensation plan. BGES Group partners with a company that has successfully offered this program for over 24 years. What makes this plan unique?

1. Long-Term Stability: With more than two decades of proven success, this plan offers reliable, stable coverage—an essential factor for contractors and other high-risk businesses.
2. Coverage for Riskier Industries: Unlike many insurers, this program can cover demolition contractors, roofers, auto services, limousine services, and truckers.
3. Simplified Payments: Premiums are deducted from payroll, making budgeting easier and eliminating large deposits.

Other payroll companies also offer workers’ compensation, but they often work with conservative insurers that avoid high-risk businesses. Additionally, some add hidden fees, inflating the overall cost. That’s why it’s essential to work with experts like BGES Group to find the right fit.

Professional Employer Organizations (PEOs): A Lifeline for Challenged Businesses

If your business has poor loss experience, high experience modification rates, or past coverage cancellations, Professional Employer Organizations (PEOs) can be a game-changer. PEOs combine payroll services with workers’ compensation coverage, operating as co-employers. This structure allows them to offer competitive rates and extensive provider networks.

PEOs can also bundle health insurance, providing an affordable option for businesses seeking comprehensive employee benefits. For those struggling to secure coverage through traditional means, PEOs offer a practical, often cost-effective solution.

Solving Common Workers’ Compensation Challenges

Business owners often encounter obstacles when seeking or maintaining workers’ compensation coverage. BGES Group specializes in addressing these challenges head-on. Here’s how they can help:

1. High-Risk Business Categories: From asbestos abatement to roofing, BGES Group works with up to 25 companies to secure coverage for high-risk industries outside state plans.
2. Poor Loss Experience: For businesses with significant claims, BGES Group has access to specialty programs that provide coverage despite past losses.
3. Audit Disputes: When audits result in unfair premium increases, BGES Group helps correct mistakes and find new coverage if necessary.
4. Avoiding Annual Audits: Depending on your state and plan, they can find programs with minimal audit requirements.
5. Misclassified Payroll: If your payroll has been incorrectly classified, BGES Group ensures proper class codes and rates—even securing refunds for past overpayments.

Real-World Success Stories

BGES Group has a proven track record of helping businesses overcome significant hurdles. Two cases involved contractors with over $1 million in losses. These contractors faced astronomical premiums and limited coverage options. Thanks to BGES Group’s specialized programs, both secured new policies with better rates.

In another case, a contractor faced cancellation due to an audit dispute. The insurer demanded $41,000—an amount the contractor didn’t actually owe. BGES Group stepped in, resolved the dispute, and secured new coverage, preventing a costly lapse.

Navigating Multi-State Coverage

For businesses operating across state lines, ensuring proper coverage in each state is critical. BGES Group recently assisted a New York-based contractor who performed all their work in Connecticut. Despite their out-of-state operations, their existing policy didn’t cover Connecticut claims—a potential financial disaster waiting to happen. BGES Group swiftly corrected the coverage, protecting the business from significant liability.

Similarly, New York contractors working in New Jersey often face gaps in coverage. If an employee is injured in New Jersey, a New York policy typically won’t cover the claim. BGES Group ensures comprehensive, multi-state coverage, eliminating this costly oversight.

Why Choose BGES Group?

What sets BGES Group apart? It’s not just their expertise—it’s their commitment to exceptional service. When you call, you get Gary Wallach directly—no automated systems, no delays. Emails and texts receive prompt responses, and certificates of insurance are issued within minutes.

Unlike many competitors, BGES Group avoids excessive fees. While some brokers charge up to $10,000 in policy fees or 10% service fees, BGES Group prioritizes affordability, ensuring clients keep more of their hard-earned money.

Comprehensive Services Beyond Workers’ Compensation

While workers’ compensation is a specialty, BGES Group offers a full suite of insurance services, including:

• Property and Liability Insurance
• Umbrella Liability Coverage
• Business Auto Insurance
• Bid & Performance Bonds
• Inland Marine Coverage
• New York State Disability Insurance
• Group Health and Life Insurance
• Identity Theft Protection

Contractors benefit from tailored risk management programs, subcontractor screening, and strategies to lower insurance costs. With access to over 50 insurance companies, BGES Group ensures every client receives the best possible coverage.

Get the Right Coverage Today

Don’t let workers’ compensation challenges jeopardize your business. Whether you’re facing high-risk classifications, audit disputes, or multi-state coverage gaps, BGES Group has the expertise and resources to find the right solution.

Call Gary Wallach at 914-806-5853 today—day or evening, Monday through Sunday—and discover why BGES Group is the trusted partner for businesses throughout New York, New Jersey, and Connecticut. Protect your business, your employees, and your bottom line with the best workers’ compensation solutions available.

Email: bgesgroup@gmail.com

Website: www.bgesgroup.com

Independent contractors often face high insurance costs, which can be a significant burden on their business finances. This FAQ blog explores how risk assessment can play a crucial role in potentially reducing these costs. Through careful evaluation and strategic planning, contractors may find effective ways to lower their insurance premiums.

Why is Risk Assessment Important for Insurance Costs?

Risk assessment is critical as it helps identify potential hazards and the likelihood of their occurrence. By understanding these risks, independent contractors can take proactive measures to mitigate them, which is often looked upon favorably by insurance providers.

By conducting a proactive risk assessment, contractors not only enhance their operational safety but also present themselves as lower-risk clients to insurers. This portrayal can lead to reduced insurance premiums, as providers often offer better rates to policies that include well-documented risk management strategies.

Understanding how different types of risks—such as physical, financial, or legal—affect your operations is fundamental. This insight enables contractors to implement targeted interventions that reduce the frequency and severity of potential claims, further influencing insurance costs positively.

How to Conduct an Effective Risk Assessment?

Start by reviewing all aspects of your work environment and procedures. Identify potential risks, evaluate their impact, and develop strategies to minimize them. This approach not only protects your operations but may also lead to lower insurance costs.

Engaging with professional insurance advisors can provide valuable insights into effective risk assessment techniques. These professionals can guide you in evaluating liability exposures and developing loss prevention methods that may ultimately lower insurance costs.

Regularly updating your risk assessment process to include new technologies and industry best practices can significantly reduce risks. By adopting modern safety equipment and innovative processes, independent contractors demonstrate a commitment to safety, which can positively impact their insurance dealings.

What Steps Can Be Taken to Minimize Risks?

Implement safety measures such as staff training, using quality equipment, and adhering to industry standards. By reducing the potential for accidents or claims, you can position your business as lower risk in the eyes of insurers.

Consider investing in ongoing safety education programs for your team. These programs can play a pivotal role in risk reduction by ensuring that everyone is up-to-date on the latest safety protocols and emergency procedures.

Establishing a safety-first culture is not only about compliance but about creating a resilient work environment. Encourage employees to report hazards and participate in safety committees to foster a collective approach to minimizing operational risks.

How Does Accurate Documentation Influence Insurance Costs?

Maintaining detailed records of safety protocols, training sessions, and incident reports can demonstrate a commitment to risk management. This transparency can lead to better negotiations with insurance providers for lower premiums.

Accurate documentation shows insurers that you have control over your business processes and a strong focus on minimizing risks. Insurers often provide discounts to businesses that can substantiate their risk management efforts with documented evidence.

Utilize digital tools to enhance the accuracy of your documentation. Digital systems help in maintaining precise records and ensure easy retrieval, which is especially crucial during insurance audits or policy renewals.

When to Review and Update Your Insurance Policy?

Regularly reviewing your insurance policies and risk assessments ensures they reflect current operations and risks. Doing this annually or after significant business changes can help maintain optimal insurance coverage at the best price.

Significant changes in your business, such as expanding services or relocating your operations, warrant an immediate review of your insurance policies. These changes might alter your risk profile, necessitating updates in coverage to remain fully protected.

Reviewing your insurance annually not only helps in aligning your policies with current needs but also offers a chance to compare quotes from different providers. This practice keeps your rates competitive, leading to potential savings on existing policies.

Strategize Your Way to Lower Insurance Costs

In conclusion, implementing a comprehensive risk assessment process can be an effective strategy for independent contractors aiming to reduce their insurance costs. By identifying risks, enhancing safety measures, accurately documenting processes, and regularly reviewing policies, contractors can work towards more affordable insurance premiums while safeguarding their business operations.

BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders’ risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability, and group health.  Our commitment to you goes beyond the policies we provide. We are always just a call, text, or email away, ready to assist you, even on weekends. We understand the importance of your business and are here to help you navigate any insurance challenges. 

BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or whatever your issue. We can help!  We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, Logistics Companies, Manufacturers, Recyclers, and Truckers; we can help ANY tri-state business owner. We are considered “Preferred Agents” for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too.  

If you want to speak with us, call Gary Wallach at 914-806-5853, click here to email, or visit our website. 

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

email: bgesgroup@gmail.com

website: http://www.bgesgroup.com

© – Copyright – 2025 – BGES Group
 

In the construction world, efficiency and cost control are everything. To stay competitive, many contractors turn to independent contractors, also known as “1099 workers,” to meet their project needs. But while hiring 1099 workers may seem like an easy solution, it comes with legal, financial, and insurance implications that contractors can’t afford to ignore. This article breaks down the pros, cons, and potential pitfalls of relying on independent contractors.

What Is a 1099 Worker?

A 1099 worker is an independent contractor, not an employee. The term “1099” refers to IRS Form 1099-NEC, which businesses use to report payments made to independent contractors. Unlike W-2 employees, 1099 workers are responsible for their own taxes, benefits, and insurance.

According to the IRS and Department of Labor, independent contractors typically:

• Control their work: They decide how, when, and where they perform their tasks.
• Use their own tools: Independent contractors usually supply their own equipment and materials.
• Work for multiple clients: They aren’t exclusive to one company.
• Operate as a business: Many independent contractors have their own business entity.

If a worker doesn’t meet these conditions, they might be classified as an employee—even if they’re labeled as a 1099 worker.

What Isn’t Considered a 1099 Worker?

Misclassification happens when a worker is labeled as an independent contractor but legally qualifies as an employee. Here’s when a worker is not a 1099 contractor:

• Employer Control: If the contractor dictates the worker’s schedule, training, and specific work methods.
• Provided Tools: If the company supplies the worker’s tools, vehicles, or uniforms.
• Long-Term Relationship: If the worker works exclusively for one contractor for an extended period.
• No Business Entity: If the worker does not operate as an independent business.

Misclassification can lead to hefty fines and legal trouble, making it crucial for contractors to classify workers correctly.

Insurance Challenges When Hiring 1099 Workers

Insurance companies view 1099 workers differently from employees, and this can complicate a contractor’s insurance policy. Here’s why insurers may raise concerns:

1. Increased Risk: Independent contractors may not carry their own insurance, increasing risk exposure for the hiring contractor.
2. Workers’ Compensation Gaps: If a 1099 worker gets injured and lacks workers’ compensation insurance, they might seek coverage under the contractor’s policy.
3. Audit Surprises: During annual audits, insurance carriers may include uninsured 1099 workers in payroll calculations, raising premium costs.

Penalties for Misclassification

Misclassifying workers as 1099 contractors when they should be employees can lead to severe penalties:

1. IRS Penalties: Employers may face fines for unpaid employment taxes, including Social Security, Medicare, and unemployment.
2. State Penalties: Many states impose additional fines, sometimes exceeding $25,000 per violation.
3. Wage Claims: Misclassified workers can sue for unpaid wages, overtime, and benefits.
4. Insurance Penalties: Workers’ compensation carriers may retroactively adjust premiums and impose penalties for uninsured 1099 workers.

Workers’ Compensation and 1099 Workers

One common question contractors face is: If a 1099 worker gets injured, are they covered under the contractor’s workers’ compensation policy?

The answer depends on the worker’s classification and insurance status:

• If the 1099 worker has their own insurance: They are responsible for their own coverage.
• If the 1099 worker lacks insurance: The contractor’s workers’ compensation carrier might cover the claim, treating the worker as an employee. This can lead to premium increases and potential penalties.

To protect against this risk, contractors should:

1. Require all independent contractors to provide a valid Certificate of Insurance (COI).
2. Ensure the COI includes workers’ compensation coverage.
3. Keep detailed records of contracts and insurance documentation.

How BGES Group Can Help

Navigating workers’ compensation insurance with 1099 workers can be complex and costly if mishandled. That’s where BGES Group comes in. As specialists in workers’ compensation insurance, BGES Group helps contractors:

1. Secure Proper Coverage: Find affordable policies that protect against claims from uninsured 1099 workers.
2. Avoid Misclassification Pitfalls: Ensure proper worker classification to prevent fines and audits.
3. Manage Risk: Implement policies and procedures to protect your business from insurance gaps.

Contact BGES Group Today

Don’t let confusion around 1099 workers put your business at risk. Contact BGES Group today for expert guidance and a customized workers’ compensation solution.

📞 Phone: (914) 806-5853 – Gary wallach
✉️ Email: bgesgroup@bgesgroup.com
🌐 Website: www.bgesgroup.com

Protect your business, stay compliant, and focus on what you do best—building success!

New York’s Labor Laws 240 and 241, often called the “Scaffold Law,” impose strict liability on general contractors and property owners for elevation-related injuries suffered by workers. This means that if a worker falls from a height or is struck by a falling object due to inadequate safety measures, the general contractor and property owner can be held liable—even if they were not directly negligent.

For New York contractors, this law makes obtaining the right liability insurance crucial. Without proper coverage and contractual protections in place, a single claim can lead to devastating financial consequences. Let’s examine two scenarios involving a subcontractor’s employee falling off a ladder on a job site and how the presence (or absence) of an insurance and hold harmless agreement impacts the lawsuit and liability.

Scenario 1: The General Contractor Had a Signed Insurance and Hold Harmless Agreement

A homeowner hires a general contractor (GC) to remodel their home. The GC, in turn, hires a subcontractor (SC) to handle electrical work. The SC’s employee, while working on the project, falls from a ladder and sustains serious injuries.

Who Can the Injured Worker Sue?

Since this is a work-related injury, the subcontractor’s workers’ compensation insurance will cover the employee’s medical bills and lost wages. However, under Labor Law 240, the worker can sue the general contractor and the homeowner because they are legally responsible for providing a safe work environment.

How Does the Insurance and Hold Harmless Agreement Protect the GC?

If the GC required the SC to sign a hold harmless and insurance agreement, the subcontractor is contractually obligated to:

1. List the GC as an Additional Insured on their General Liability policy.

2. Defend and Indemnify the GC in case of a claim resulting from their work.

3. Provide Primary and Non-Contributory Coverage, meaning the SC’s insurance policy pays first before the GC’s policy is triggered.

When the injured worker sues the GC and homeowner, the GC can tender the claim to the SC’s insurance company, shifting the financial responsibility to them. This helps the GC avoid out-of-pocket costs, higher insurance premiums, or being stuck with liability.

Scenario 2: The General Contractor Did NOT Have a Signed Insurance and Hold Harmless Agreement

Now, let’s assume the GC failed to obtain a hold harmless and insurance agreement from the SC. The same worker falls off the ladder and files a lawsuit under Labor Law 240 against the GC and the homeowner.

Who Can the Injured Worker Sue?

Just like in the first scenario, the injured worker can sue both the GC and homeowner, regardless of fault. Since Labor Law 240 imposes strict liability, they don’t have to prove negligence—only that the injury resulted from an elevation-related risk.

What Happens Without a Hold Harmless Agreement?

1. The GC Cannot Shift Liability to the SC – Without a signed agreement, the GC cannot force the SC’s insurance company to cover the claim. The GC’s own General Liability and Umbrella Liability policies will have to respond, leading to potential premium increases or even policy cancellation.

2. The GC May Have to Pay Out of Pocket – If the insurance coverage is insufficient, the GC might have to cover legal fees and settlements personally.

3. The GC’s Insurer May Sue the SC – If the GC’s insurer ends up paying, they may attempt to recover costs from the SC through subrogation, but this is often a long and uncertain process.

Without a contractual agreement, the GC is at much higher risk financially. This is why it is critical for GCs to require all subcontractors to sign hold harmless and insurance agreements before starting work.

How BGES Group Can Help New York Contractors Obtain the Right Coverage

Navigating New York’s strict labor laws and complex insurance landscape can be challenging. This is where BGES Group comes in. As a specialist in New York construction insurance, we help contractors secure the right coverage to protect themselves from costly Labor Law 240 and 241 claims.

Why Contractors Turn to BGES Group

1. Access to Top-Tier Insurance Carriers – Many insurers are leaving the New York construction market due to the high risk. BGES Group works with specialty carriers that still provide coverage for GCs and subcontractors.

2. Customized Liability Insurance Solutions – We ensure our clients have:

• General Liability with Labor Law Coverage

• Umbrella/Excess Liability for additional protection

• Workers’ Compensation coverage that meets New York State requirements

3. Hold Harmless and Insurance Agreement Guidance – We help contractors draft and implement strong contractual agreements with their subcontractors to reduce liability exposure.

4. Competitive Pricing and Expert Advice – With years of experience in the industry, we negotiate the best coverage at the most competitive rates.

5. Fast, Responsive Service – When an issue arises, you need an insurance broker who acts fast. We pride ourselves on providing boutique-style service with personalized attention.

Protect Your Business Today—Contact BGES Group

Don’t wait until a lawsuit threatens your business. Make sure you have the right coverage and risk management strategies in place today.

Contact BGES Group for a Free Consultation

• Gary Wallach, Construction Insurance Expert

• Phone: 914-806-5853

• Email: bgesgroup@gmail.com

• Website: bgesgroup.com

BGES Group is the go-to insurance specialist for New York contractors. We ensure you have the best liability protection available, so you can focus on growing your business with peace of mind. Call us today!

In the world of construction, unforeseen challenges can arise at any moment, making it essential for business owners and contractors to have the right protections in place. General contractor insurance provides a safety net that shields your company from unexpected incidents, ensuring a stable and secure future. This blog explores the importance of general contractor insurance and how it can safeguard your business operations.

Understanding General Contractor Insurance

General contractor insurance is a multifaceted coverage that provides protection against various risks inherent in the construction industry. It is designed to cover property damage, third-party injury claims, and even financial loss due to litigation involving the projects your business undertakes. This type of insurance not only protects the contractor but also the client and subcontractors involved in the construction process. The complexity of construction projects often introduces unforeseen challenges, and without appropriate insurance, contractors could face dire financial consequences. For a deeper dive into the specifics of this insurance, consider exploring general contractor insurance coverage.

Another essential aspect of general contractor insurance is its flexibility and adaptability to the unique needs of different projects and geographical locations. For instance, a construction site in New York may have different insurance requirements compared to one in a rural setting. Understanding these geographic differences can ensure that your coverage is well-suited to local regulations and risks. Discussing your needs with an experienced insurance provider who specializes in general contractor insurance requirements can help in crafting a policy that fulfills all necessary criteria.

Key Components of Coverage

The cornerstone of any robust insurance policy for general contractors is general liability insurance. This coverage protects against common risks such as third-party bodily injury or property damage, which are frequent occurrences in construction projects. In addition, workers’ compensation insurance is mandatory in most states to cover medical expenses and lost wages for injured employees. Legal mandates make it crucial for contractors to ensure compliance with these insurance requirements to avoid severe penalties or legal issues.

Beyond these basics, contractors might consider additional coverages such as professional liability insurance, which protects against claims related to errors and omissions during the planning and execution phase. Another critical component is property insurance, which protects against damage to construction materials and equipment due to theft, vandalism, or natural disasters. Implementing a comprehensive policy covering these areas is vital for safeguarding both financial investments and reputation. For more insight on the specifics of general contractor insurance cost, exploring resources like Progressive Commercial’s options can be beneficial.

Benefits of General Contractor Insurance

One of the primary benefits of securing general contractor insurance is the ability to shield your business from potential financial ruin due to lawsuits or accidents. This insurance acts as a financial safeguard, allowing businesses to operate with peace of mind knowing that they are protected against the unforeseen. Additionally, having comprehensive insurance can significantly enhance your company’s reputation and credibility in the competitive construction market.

Insurance not only protects but also opens up opportunities. Many clients require proof of insurance before signing on a contract, viewing it as a mark of professionalism and reliability. Moreover, certain government contracts specifically mandate that contractors carry sufficient insurance coverage, making it a crucial factor in the bidding process. This necessity is reiterated in local mandates and is a key point for discussion with a specialized insurance provider who can tailor a policy that’s effective and comprehensive.

Furthermore, general contractor insurance facilitates smoother business operations by allowing contractors to focus on the job at hand without being bogged down by potential liabilities. In the event of an accident or a lawsuit, the contractor can rely on the insurance policy to cover legal fees, settlements, and any other associated costs. This agility in addressing risks ensures business continuity and stability.

Choosing the Right Insurance Policy

Choosing an insurance policy requires careful consideration of various factors, including the nature of your projects, their geographical location, and the specific risks involved. It is advisable to begin with a detailed risk assessment that outlines potential liabilities and exposures. With this information, engaging with an insurance broker or agent can help narrow down the list of suitable policies. An efficient tactic is to leverage the insights from seasoned professionals who understand the nuances of construction insurance.

When comparing policies, pay attention to the coverage limits, deductibles, and the specifics of what is covered. Determine any potential gaps in coverage, especially if you work with a lot of subcontractors. As many insurance providers do not automatically cover subcontractors under a general liability policy, it is crucial to ensure that these gaps are addressed either by requiring subcontractors to carry their own insurance or by extending your policy. Consequently, understanding general contractor insurance requirements in your area is essential.

Additionally, the cost of premiums and the reputation of the insurance company are significant factors to consider. A lower premium might not always be indicative of the best policy, as it could mean lower coverage or a higher deductible. A well-regarded insurance company with a track record of fair and efficient claims handling can make all the difference during critical times. Seek out trusted insurance partners who have extensive experience with construction businesses to guide you through the policy selection process.

Common Myths about General Contractor Insurance

A pervasive myth is that general contractor insurance is only necessary for large firms. In reality, even small contractors are susceptible to lawsuits and accidents that can lead to substantial financial losses. Many entrepreneurs mistakenly believe that minimal insurance coverage is sufficient, only to realize too late that their policy does not cover certain liabilities or lawsuits in full.

Another common misconception is that individual liability insurance is enough to cover all potential risks. While individual policies might provide coverage to some extent, they often do not protect against the multitude of issues a contractor might face on the job. This is particularly true in urban settings where projects are complex, and regulations are stringent.

Some believe that insurance only benefits during a claim, underestimating its role in enhancing client trust and securing new projects. Clients are more likely to choose contractors who showcase professionalism with appropriate coverage. Dispel these myths to make informed decisions and secure the best possible protections for your business.

Securing Your Business’s Future

General contractor insurance is not merely an option—it’s a necessity for any construction business aiming to secure its projects and reputation. By investing in the right coverage, you protect your company from financial losses and enhance your credibility with clients and stakeholders. As the industry continues to evolve, staying informed about insurance options ensures that your business is prepared for whatever challenges lie ahead. To explore more about insurance options, visit our homepage.

BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders’ risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability, and group health.  Our commitment to you goes beyond the policies we provide. We are always just a call, text, or email away, ready to assist you, even on weekends. We understand the importance of your business and are here to help you navigate any insurance challenges. 

BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or whatever your issue. We can help!  We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, Logistics Companies, Manufacturers, Recyclers, and Truckers; we can help ANY tri-state business owner. We are considered “Preferred Agents” for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too.  

If you want to speak with us, call Gary Wallach at 914-806-5853, click here to email, or visit our website.
 
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

email: bgesgroup@gmail.com

website: http://www.bgesgroup.com

© – Copyright – 2025 – BGES Group
 

As a business owner, you could be held liable for the actions of other people’s employees.

U.S. employment law has long recognized that workers may have an employment relationship with multiple entities at the same time. That means your company could get stung with OSHA fines, Title VII discrimination claims, and other actions that arise from the conduct of an employee you thought was a subcontractor.

Here’s Why:

In Secretary of Labor vs. Summit Contractors, the 8th Circuit ruled that companies exercising overall control of a job site can be held liable for workplace infractions—even when the individual or individuals directly responsible for the infraction were employees of another firm and no employees of the controlling employer were directly involved.

Furthermore, even if your company doesn’t exercise direct supervisory control of subcontractors, courts have held that a de facto employment situation exists if the controlling employer simply reserves the right to exercise control.

Protecting Yourself

Here are some ways to safeguard yourself from joint employer liability:

• Ensure that all subcontractors have employee liability insurance and general liability insurance of their own.
• Check the vendor or subcontractor’s track record with safety and OSHA-related claims.
• Research the subcontractor’s bonding history.
• Ensure your employer’s liability insurance covers claims that may arise from contractors and vendors working on your property or on worksites your company controls.
• Negotiate for an indemnification clause in any vendor contracts or subcontracting arrangements.
• Don’t rely on verbal assurances: Put the subcontractor’s responsibility for complying with OSHA standards and labor laws in writing as part of the contract.
• Hold regular safety meetings with representatives from the subcontractor’s firm and document them.
• Don’t sign a contract with a manpower or employee leasing firm unless you have reviewed it for liability exposure.
• Ensure the vendor or subcontractor provides job site supervision. At a minimum, ensure their management is checking on the site regularly. If all supervision is left to you, federal regulators may deem these workers to be your employees.
• Don’t discipline the subcontractor’s workers directly. Work through the subcontracting entity wherever possible. If your supervisors attempt to discipline their employees or direct their work too closely, courts may find that a de facto employment relationship exists with your firm, exposing you to liability.
• Train your middle managers and foremen not to act as supervisors to subcontractors’ employees and onsite vendors.
• Don’t lend heavy equipment, power tools, or vehicles to subcontractors unless you also send a designated operator. Contractors are expected to maintain their own equipment. When you send your own operator with equipment, you can help ensure the subcontractor doesn’t expose you to liability from an unqualified operator.

About BGES Group

BGES Group specializes in helping businesses protect themselves from liability exposure and risk management challenges. With extensive experience in employee liability insurance, OSHA compliance, and workplace safety solutions, BGES Group provides expert guidance tailored to your unique business needs.

Contact Information: Gary Wallach
BGES Group
Phone: 914-806-5853
Email: bgesgroup@gmail.com
Website: www.bgesgroup.com

For more information or to schedule an insurance and risk exposure review, call us today!