New York State has some of the strictest workers’ compensation laws in the country. If you’re an employer and you failed to carry workers’ compensation insurance when required, you may have received a hefty penalty fine from the New York State Workers’ Compensation Board (NYS WCB). These fines can be financially devastating, but you do have options.

In this article, we’ll discuss what steps you can take if you’ve been hit with a workers’ compensation penalty, how to reduce or resolve the fine, and—most importantly—how to avoid future penalties by securing the right coverage through BGES Group, one of New York’s top insurance experts.

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Understanding Workers’ Compensation Penalties in New York

New York law mandates that nearly all businesses with employees carry workers’ compensation insurance. If you don’t, the state can issue significant fines, including:

• A daily penalty of $2,000 per 10-day period without coverage.
• An automatic penalty of $12,000 for businesses that go without coverage for more than a certain period.
• Additional fines for misclassifying employees as independent contractors when they should be covered under workers’ compensation.
• Liability for medical expenses and lost wages if an employee gets injured while uninsured.

These penalties can add up quickly, putting a severe financial strain on your business. However, the state does offer some avenues for relief if you act quickly.

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Steps to Take If You Receive a Workers’ Compensation Penalty

If you’ve been notified of a fine for not carrying workers’ compensation insurance, don’t panic. Follow these steps to mitigate the damage:

1. Review the Penalty Notice Carefully

First, make sure the penalty is valid. Sometimes, fines are issued due to administrative errors. Check:

• The period for which coverage was missing.
• Whether your business was legally required to carry workers’ comp during that time.
• Any inaccuracies in the notice, such as incorrect business details or misclassified employees.

If you believe there’s an error, you may be able to dispute the fine.

2. Contact the New York State Workers’ Compensation Board

Reach out to the NYS WCB as soon as possible. If your business had coverage but failed to report it properly, you might be able to resolve the issue without paying the fine. If you were uninsured, you might be eligible for a reduced penalty if you secure workers’ compensation insurance immediately.

3. Apply for a Penalty Reduction

New York offers a Penalty Reduction Program that allows some businesses to lower their fines. If you can show that the lapse in coverage was unintentional and that you’ve since obtained the required insurance, you may qualify for a reduction. Factors that could work in your favor include:

• A previously clean record with the NYS WCB.
• A short lapse in coverage.
• Immediate corrective action (securing insurance as soon as possible).

4. Set Up a Payment Plan

If your fine is significant and you cannot pay it all at once, New York may allow you to set up a payment plan. Contact the NYS WCB and ask about installment options to avoid further penalties and potential legal action.

5. Secure Workers’ Compensation Insurance Immediately

To prevent additional fines, you need to get insured right away. Not all insurance providers make the process easy, especially if you’ve had a lapse in coverage. This is where BGES Group can help.

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How BGES Group Can Help You Get Back on Track

BGES Group specializes in helping New York businesses secure the right workers’ compensation insurance, even if they’ve had trouble in the past. Whether you’re a contractor, manufacturer, trucking company, or any other type of business, BGES Group can find coverage that meets your needs and budget.

Why Choose BGES Group?

• Fast Coverage to Avoid Further Penalties – We help businesses secure workers’ comp insurance quickly to prevent additional fines.
• Expert Assistance in Complex Cases – If you’ve been denied coverage due to past issues, we can connect you with specialized programs.
• Affordable Rates – We work with multiple carriers to find the best coverage at the most competitive prices.
• Personalized Service – Unlike big insurance companies, we offer boutique-level service, ensuring that every client receives expert attention.

Industries We Serve

BGES Group provides workers’ compensation insurance for a variety of industries, including:

• Construction (including high-risk trades like roofing and demolition)
• Manufacturing
• Limousine and transportation services
• Moving and storage companies
• Trucking and logistics businesses

If you’ve been hit with a fine for lacking workers’ compensation insurance, BGES Group can help you turn things around.

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Avoid Future Penalties – Protect Your Business Now

Once you’ve resolved your workers’ compensation issue, make sure you stay in compliance going forward:

• Keep your policy active and up to date. Never let it lapse.
• Report any new employees properly. Misclassifying workers can result in fines.
• Work with an insurance expert like BGES Group. They can help you navigate the complexities of New York’s workers’ comp laws.

Being proactive about your insurance will not only keep you compliant but also protect your employees and your business from financial disaster in the event of a workplace injury.

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Need Workers’ Compensation Insurance? Contact BGES Group Today!

If you’ve received a workers’ compensation penalty or need help securing the right coverage, BGES Group is here to help.

📞 Phone: 914-806-5853
📧 Email: bgesgroup@gmail.com
🌐 Website: www.bgesgroup.com

Don’t wait until the penalties pile up—get your business covered today with BGES Group!

Running a contracting business in New York comes with significant risks, from workplace injuries to property damage and lawsuits. That’s why having the right contractors’ liability insurance is crucial to protect your business, employees, and assets. Whether you are a general contractor, subcontractor, or construction business owner, ensuring your Commercial General Liability (CGL) insurance and Umbrella Liability insurance have the proper coverage is essential.

In this guide, we’ll break down the key coverages you should have in your policies, the importance of New York contractor liability insurance, and how BGES Group—a leading expert in construction insurance—can help you secure the right protection at competitive rates.

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Essential Coverages for Your Contractors’ Liability Insurance

When selecting general liability insurance for contractors, it’s important to ensure your policy includes the following coverages:

1. Bodily Injury and Property Damage Liability
   • Protects your business if someone is injured or their property is damaged due to your operations.
   • Covers legal fees and settlements if a client or third party sues.
2. Completed Operations and Products Liability
   • Covers claims from past clients alleging property damage or injury due to your completed work.
3. Contractual Liability
   • Ensures your insurance meets contractual obligations required in construction contracts.
4. Action Over Claims Coverage
   • Essential for New York contractors; protects against lawsuits from injured employees who have already received workers’ compensation.
5. Additional Insured Endorsements
   • Extends coverage to general contractors if a claim arises from a subcontractor’s work.
6. Primary and Non-Contributory Coverage
   • Ensures your policy responds first in a claim involving additional insureds.
7. Waiver of Subrogation
   • Prevents legal disputes between contractors and subcontractors by waiving the insurer’s right to pursue a third party.
8. Pollution Liability
   • Covers pollution-related claims (e.g., dust, mold, hazardous materials).
9. Employee Benefits Liability
   • Protects against errors in administering employee benefits programs.
10. Umbrella Liability Insurance

• Provides an extra layer of protection for high-cost claims that exceed CGL policy limits.

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Why New York Contractors Need Strong Liability Insurance

New York’s construction industry is highly regulated, and legal claims can be costly. With New York Labor Law 240 and 241, project owners and general contractors can be held strictly liable for job site injuries, even if they were not directly responsible. That’s why ensuring your construction liability insurance includes coverage for labor law claims is essential.

Failing to carry the right insurance can result in:

• Expensive lawsuits that could bankrupt your business.
• Loss of contracts due to non-compliance with insurance requirements.
• Increased liability exposure when hiring subcontractors.
• Difficulty securing permits or licensing.

That’s why working with an expert in New York contractors’ insurance is key to ensuring your policies cover all potential risks.

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BGES Group: Experts in Contractors’ Liability Insurance

When it comes to securing the best contractor liability insurance in New York, BGES Group is the go-to agency. With decades of experience specializing in construction insurance, workers’ compensation, and liability coverage, they understand the unique risks contractors face.

How BGES Group Can Help You:

1. Customized Insurance Solutions – Tailored insurance plans for your specific needs.
2. Competitive Pricing – Affordable rates from top-rated insurance carriers.
3. Fast & Hassle-Free Quotes – Quick turnaround to keep your projects moving.
4. Expert Guidance on Labor Law Coverage – Ensures coverage for Labor Law 240 and 241 claims.
5. Nationwide Coverage – Specializing in New York contractor insurance, but also covering nationwide programs.
6. Boutique-Level Service – Personalized, expert service unlike large agencies.
7. Payroll and Workers’ Comp Solutions – Streamlining workers’ compensation insurance and payroll services.

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Get the Best Contractors’ Liability Insurance Today

Don’t let gaps in your insurance put your business at risk. Whether you need a general liability policy, umbrella liability insurance, or workers’ compensation insurance, BGES Group can help you find the right coverage at competitive rates.

Contact BGES Group Today:

• Gary Wallach – Construction Insurance Expert
• Phone: 914-806-5853
• Email: bgesgroup@gmail.com
• Website: bgesgroup.com

Protect your contracting business with the best coverage available. Call BGES Group today to get a fast, competitive quote for your contractors’ liability insurance!

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Workers’ compensation insurance is essential for protecting both employees and employers in the construction industry. However, some contractors engage in fraudulent practices to lower their insurance costs, putting their businesses at serious financial and legal risk. Insurance carriers and regulators are cracking down on contractor workers’ compensation fraud, and getting caught can result in heavy fines, policy cancellations, and even criminal charges. If you’re a contractor in New York, New Jersey, or Connecticut, it’s crucial to recognize the warning signs of fraud and ensure you’re following the law.

Below are 10 signs of employer workers’ compensation fraud in the construction industry.

1. Misclassifying Employees as Independent Contractors

One of the most common forms of workers’ compensation fraud is classifying workers as independent contractors instead of employees. Some employers do this to avoid paying workers’ compensation premiums, payroll taxes, and benefits. However, if a worker is under your control—meaning you set their hours, provide their tools, and determine how they complete tasks—then they are legally an employee, not an independent contractor. Misclassification can lead to serious penalties, including back payments, fines, and even legal action from injured workers.

2. Underreporting Payroll to Lower Premiums

Workers’ compensation insurance premiums are calculated based on payroll. Some dishonest contractors attempt to lower their premiums by underreporting their payroll, either by paying workers off the books or falsifying records. Insurance companies conduct routine audits, and if discrepancies are found, you could face policy cancellation, hefty fines, and potential lawsuits.

3. Using Ghost Policies to Avoid Proper Coverage

A ghost policy is a fraudulent practice where a business owner purchases a workers’ compensation policy that covers only themselves, while still employing workers under the table. This tactic is common among small contractors looking to bid on jobs that require proof of workers’ compensation coverage. However, when an employee gets injured, the company is left exposed, facing legal and financial consequences. Insurance carriers and regulators are actively targeting ghost policies, and getting caught can lead to severe repercussions.

4. Misclassifying High-Risk Workers as Low-Risk Employees

Another deceptive practice involves reporting high-risk construction workers under low-risk job classifications, such as clerical or administrative staff, to reduce insurance premiums. For example, a contractor might list roofers or demolition workers as office staff. If an insurer or state agency audits your records and finds discrepancies, you could be charged with workers’ compensation fraud and face significant penalties.

5. Failing to Carry Workers’ Compensation Insurance

Some contractors simply operate without workers’ compensation insurance, hoping to avoid costs altogether. This is illegal in New York, New Jersey, and Connecticut and can result in massive fines, stop-work orders, and lawsuits. If an employee gets injured on the job and the employer lacks coverage, they may be personally liable for medical expenses and lost wages. Regulators are cracking down on uninsured employers, making this a high-risk gamble.

6. Forcing Employees to Pay for Their Own Workers’ Comp Coverage

Workers’ compensation insurance is the employer’s responsibility. However, some unscrupulous contractors force employees to contribute toward their own coverage or deduct insurance costs from their paychecks. This is illegal and can result in lawsuits, penalties, and criminal charges. Employees who realize they are being exploited may report the fraud to state labor departments or insurance carriers, triggering investigations.

7. Hiding Injuries to Avoid Claims

Some contractors discourage workers from reporting workplace injuries or even threaten retaliation if they file a claim. Others may pressure injured employees to use their personal health insurance instead of filing a workers’ compensation claim. This practice is illegal and can lead to lawsuits, increased penalties, and even criminal charges if discovered by state regulators or insurance investigators.

8. Using Multiple Shell Companies to Dodge Insurance Costs

Some construction firms set up multiple shell companies to divide their workforce and manipulate workers’ compensation rates. This tactic is often used to qualify for lower-risk classifications or to make payroll reporting more difficult to track. However, insurance carriers and state agencies have become more sophisticated in detecting these schemes, and those caught engaging in this type of fraud can face major financial and legal consequences.

9. Doctoring Payroll and Employment Records

Altering payroll records, time sheets, or employment documents to reduce insurance premiums is a serious form of workers’ compensation fraud. Auditors regularly check these records, and if fraud is detected, employers can face premium adjustments, fines, policy cancellations, and even legal action. Insurance companies and regulators work closely together to identify inconsistencies, so fraudulent payroll reporting is becoming increasingly difficult to get away with.

10. Deliberately Misrepresenting Business Operations

Some contractors misrepresent their entire business to secure lower workers’ compensation rates. For example, a contractor might claim to operate solely as a general contractor when, in reality, they perform high-risk trades like roofing or demolition. Insurers conduct on-site inspections and audits to verify business operations, and getting caught can lead to severe consequences, including loss of coverage and potential legal action.

How BGES Group Can Help

If you’re a contractor operating in New York, New Jersey, or Connecticut, it’s critical to stay compliant with workers’ compensation laws. Insurance carriers are becoming more aggressive in auditing businesses, and getting caught committing fraud can be devastating. Even if you’re not committing fraud, workers’ compensation insurance is complex, and many contractors are unknowingly underinsured or paying more than necessary.

That’s where BGES Group comes in. We specialize in construction workers’ compensation insurance and help contractors secure affordable, high-quality coverage while ensuring compliance with state laws. Whether you need a new policy, a policy review, or assistance navigating audits, our team can provide expert guidance.

We offer specialized programs tailored to contractors, roofing companies, demolition businesses, and other high-risk industries, ensuring you get the best coverage at the best price. Many contractors overpay for their workers’ compensation policies or don’t realize they have gaps in coverage that could leave them financially exposed. Let BGES Group help you find the right coverage and avoid costly mistakes.

Contact BGES Group Today

If you need workers’ compensation insurance for contractors or have concerns about your current coverage, contact BGES Group today. We work with contractors throughout New York, New Jersey, and Connecticut, offering personalized service, competitive pricing, and expert advice.

• Phone: Gary Wallach at 914-806-5853

• Email: bgesgroup@gmail.com

• Website: www.bgesgroup.com

Don’t wait until an audit or a workplace injury exposes gaps in your workers’ compensation coverage. Call BGES Group today and let us help you secure the best workers’ comp insurance for your business!

Workers’ compensation insurance is a critical safeguard for contractors, ensuring that injured employees receive medical care and wage replacement. However, fraudulent claims by employees can drive up insurance costs, increase scrutiny from insurers, and damage a company’s reputation. As a contractor, understanding the warning signs of workers’ compensation fraud can help you protect your business from unnecessary losses. Below are ten signs that an employee may be committing workers’ comp fraud.

1. Delayed Reporting of the Injury

Legitimate workplace injuries are typically reported immediately or as soon as it’s safe to do so. When an employee waits days or even weeks before informing their employer of an alleged injury, it raises suspicion. Delayed reporting can indicate that the injury may not have happened at work or that the employee is attempting to exaggerate a minor issue. Contractors should have clear policies in place requiring immediate injury reporting and documentation.

2. No Witnesses to the Incident

If an employee claims to have suffered an injury on the job but no one witnessed the accident, it can be difficult to verify what really happened. While not every workplace injury has direct witnesses, patterns of unwitnessed incidents—especially in areas with active foot traffic—should raise a red flag. In these cases, thorough investigation and surveillance footage review can help determine the legitimacy of the claim.

3. Inconsistent or Changing Stories

Workers’ compensation fraud often involves fabricated or exaggerated claims, and one of the easiest ways to spot deception is through inconsistent accounts of how the injury occurred. If an employee’s story changes when speaking to different people—such as their supervisor, the insurance adjuster, or a medical professional—it may indicate dishonesty. Keeping detailed written records of every report can help identify discrepancies.

4. Injury Occurs on a Monday or After a Holiday

A surprising number of fraudulent claims involve injuries reported on Monday mornings or after a long weekend. This pattern suggests that the injury may have actually occurred off the job, but the employee is attempting to pass it off as work-related to collect workers’ compensation benefits. Contractors should take special note of these claims and ensure thorough investigations are conducted.

5. The Employee Has a History of Workers’ Comp Claims

While some workers genuinely sustain multiple injuries over time, an employee with a history of frequent workers’ compensation claims should be carefully scrutinized. Serial claimants may be abusing the system to receive benefits without legitimate injuries. A claims history review can reveal whether an individual has a pattern of questionable claims.

6. Refusing Diagnostic Testing or Treatment

When an injured employee avoids medical tests that could confirm the severity of their condition—such as MRIs, X-rays, or independent medical examinations—it may indicate fraud. Fraudulent claimants often exaggerate symptoms but avoid objective medical testing that could contradict their claims. Contractors should work with their workers’ compensation insurer to ensure injured employees comply with required medical evaluations.

7. The Employee is Difficult to Reach While on Leave

A legitimately injured worker will usually keep in touch with their employer about their recovery process and return-to-work timeline. However, fraudulent claimants may become difficult to reach, fail to return phone calls, or avoid check-ins. Some may even be working another job while collecting benefits. Surveillance and social media investigations can sometimes uncover fraudulent activity.

8. Inconsistent Medical Reports

Medical professionals play a key role in verifying workplace injuries, and discrepancies in their reports can be a warning sign of fraud. If one doctor states the employee has a serious injury while another finds only minor issues, the employee may be exaggerating their symptoms. Contractors should work with insurers who have access to medical fraud detection tools and independent medical examiners.

9. The Employee is Seen Doing Activities That Contradict Their Injury Claim

One of the clearest signs of workers’ compensation fraud is when an injured worker is caught engaging in physical activities that contradict their alleged injury. For example, an employee claiming a serious back injury but later being seen lifting heavy objects or playing sports is highly suspicious. Private investigators and social media monitoring can often reveal fraudulent behavior.

10. Financial or Personal Motives for Fraud

Employees facing financial hardship, legal troubles, or job dissatisfaction may be more likely to commit workers’ compensation fraud. If a worker suddenly files a claim after being denied a promotion, facing disciplinary action, or experiencing personal financial difficulties, their motivation should be carefully considered. Contractors should stay vigilant and report any suspicious claims to their insurance provider.

BGES Group: Your Trusted Partner for Workers’ Compensation Coverage

If you suspect workers’ compensation fraud in your company, having a strong insurance partner is essential. BGES Group is a construction insurance specialist serving New York, New Jersey, and Connecticut. We understand the unique challenges that contractors face with workers’ compensation and provide tailored solutions to help protect your business from fraudulent claims.

At BGES Group, we work with top-rated insurance carriers to secure the best coverage at competitive rates. Whether you need new workers’ compensation insurance, help with risk management, or assistance in handling a questionable claim, our team is here to support you. We have programs designed specifically for contractors, including those in higher-risk trades like roofing, demolition, and masonry.

Need New Workers’ Compensation Insurance? Contact BGES Group Today!

Don’t let fraudulent claims drive up your insurance costs and put your business at risk. BGES Group specializes in workers’ compensation insurance for contractors and can help you find a better policy at a lower cost. Contact us today to discuss your coverage needs and get expert guidance.

Contact Information: • Phone: 914-806-5853 • Email: bgesgroup@gmail.com • Website: www.bgesgroup.com

BGES Group is your trusted partner for construction insurance in the Tri-State area. If you need workers’ compensation insurance that protects your business from fraud and unnecessary expenses, give us a call today!

Navigating the intricacies of contractor insurance in New York can be a daunting task for both fledgling and established contractors. With unique state regulations and diverse coverage options, understanding the essentials can save time, money, and protect your business effectively.

What is Contractor Insurance?

Contractor insurance is a comprehensive coverage plan designed to shield contractors from unexpected risks and liabilities that occur during the course of their professional work. It is not a one-size-fits-all solution, but rather a tailored mix of different insurance types. At its core, contractor insurance typically includes general liability coverage, which protects against claims of bodily injury, property damage, and other liabilities. Additionally, policies often encompass workers’ compensation, which is crucial for covering medical expenses and lost wages for employees injured on the job. This insurance acts as a crucial safety net, ensuring that contractors can focus on their work without constant worry about potential financial setbacks caused by unforeseen incidents. By securing adequate contractor insurance, businesses can safeguard their operations, maintain a sense of security, and focus on growth and client satisfaction.

New York State Regulations and Compliance

In the vibrant construction landscape of New York, contractor insurance is not merely an option—it is a legal mandate. New York state regulations stipulate stringent requirements to ensure that contractors are adequately covered for any mishaps on the job. Compliance with these regulations is not just a protective measure; it is a legal obligation for operating within the state. Contractors must carry specific types of insurance to be granted permits and licenses necessary for projects. Moreover, failure to comply can result in severe penalties, including hefty fines and project shutdowns. These compliance standards are in place to protect not only the contractors but also their clients, creating a safety net that serves the entire construction ecosystem. New York’s laws are designed to mitigate risks and ensure fair compensation in case of accidents or disputes. Thus, understanding and adhering to these regulations is vital for any contractor aiming to maintain a successful and lawful business operation in the Empire State.

A crucial piece of this regulatory puzzle involves securing appropriate liability limits outlined by state guidelines. According to the New York State Insurance Department, contractors often face complex liabilities and must ensure their policies meet or exceed these baseline requirements. While the specifics can vary based on the nature of the work and the contractor’s scope, the principle remains clear: only when correctly insured can a contractor confidently navigate New York’s unique construction landscape. Furthermore, maintaining compliance extends beyond initial setup—it requires ongoing diligence to adapt to any regulatory changes and updates which the state periodically enacts.

Types of Contractor Insurance Coverage

New York contractors have access to a variety of insurance coverage options designed to address the broad spectrum of risks associated with construction work. Foremost among these is general liability insurance, which offers protection against claims involving injuries or property damage caused by the contractor’s operations. This coverage is essential in a city like New York, where the density of both buildings and people increases the potential for such incidents. In addition to general liability, workers’ compensation insurance is mandated by state law for businesses with employees. This coverage ensures that workers receive benefits in the event of a job-related injury or illness, covering medical expenses and a portion of lost wages. Beyond these basics, contractors might also consider professional liability insurance, which protects against errors or negligence in providing professional services. For contractors who rely heavily on vehicles, commercial auto insurance is indispensable. By comprehensively understanding and integrating these coverage types, contractors can effectively safeguard their business operations from the diverse range of potential liabilities they face.

Another critical component of contractor insurance is builders risk insurance, which covers buildings under construction against damage from various events like fire, wind, and theft. This type of insurance is particularly important because construction projects are inherently vulnerable until completed. Moreover, contractors in New York often need surety bonds, which provide financial assurance in the event that they fail to meet contractual obligations. These measures collectively create a robust firewall against unforeseen events, enabling contractors to focus on delivering quality results. Lastly, firms engaged in large-scale projects might require umbrella insurance to extend their overall protection limits and ensure comprehensive safety nets against extensive liabilities. Each coverage type serves a unique role, providing a suite of protections that underpin successful project execution while reducing financial uncertainties.

Factors Influencing Insurance Premiums

The cost of contractor insurance in New York is determined by a myriad of factors, making each premium unique to the contractor’s situation. One primary factor is the contractor’s business size and scope, as larger firms or those undertaking high-risk projects can expect higher premiums due to increased liability exposure. For instance, a contractor involved in significant infrastructure projects or hazardous tasks such as demolition will naturally face steeper premiums. Additionally, the claims history of a contractor plays a pivotal role; a history of frequent claims can signal higher risk to insurers, leading to more expensive premiums. Another critical element is the geographical location of projects, as some areas in New York may pose higher risks due to local conditions or regulations. Understanding these factors is essential for contractors to effectively manage their insurance costs and align them with their operational budgets.

Beyond these basic determinants, the type of work undertaken and the safety measures implemented by a contractor significantly influence premium levels. Contractors with rigorous safety protocols and a good track record of minimizing incidents may benefit from reduced insurance costs. Insurers often reward adherence to safety standards, which decreases the likelihood of claims, with more favorable premium rates. Similarly, the specific coverage limits and deductibles chosen will directly affect the overall cost. Opting for higher coverage limits and lower deductibles generally leads to increased premiums but offers greater protection. Conversely, select higher deductibles might lower initial costs but require more substantial out-of-pocket expenses in the event of a claim. A strategic balance of these factors can help contractors optimize insurance expenses while maintaining robust protection.

Choosing the Right Insurance Provider

Selecting the right insurance provider is a critical decision for contractors in New York, given the complex nature of the construction industry and its associated risks. A proactive approach involves evaluating providers based on their reputation, customer feedback, and years of experience in serving the construction sector. Searching for providers who specialize in contractor insurance can offer added advantages, as they possess a deeper understanding of the unique challenges and requirements contractors face. Assessing the range of policies and services offered by an insurer is equally important. Contractors should prioritize providers that offer comprehensive coverage options tailored to the specific needs of the construction industry. Additionally, exploring providers that offer subcontractor insurance screening services can be highly beneficial, as these services help verify and ensure that subcontractors meet essential insurance requirements.

Another crucial factor when choosing an insurance provider is the level of customer support offered. The availability and responsiveness of the provider during both the selection process and over the course of the policy are vital for ensuring swift assistance when issues arise. Cost-effectiveness is another consideration; however, it should not solely drive the decision. Contractors must weigh the benefits of comprehensive coverage against the premiums, valuing quality and reliability over the cheapest option. Establishing a partnership with a reputable insurer can significantly enhance a contractor’s ability to navigate New York’s complex regulatory environment, ultimately fostering a more resilient and successful business operation.

Securing Your Business With the Right Insurance

In summary, comprehending contractor insurance in New York is pivotal for safeguarding against potential liabilities and ensuring the smooth operation of your business. By understanding the various types of coverage, legal requirements, and factors influencing premiums, contractors can make informed decisions and secure the future of their enterprises.

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 businesses, protecting employees from workplace injuries is both a legal and ethical responsibility. That’s where Workers’ Compensation Insurance comes in. However, many business owners overlook another critical aspect of coverage—Employer’s Liability Insurance—which is becoming increasingly scrutinized, with organizations now requiring $1 million limits as a standard. Below, we’ll break down what each policy covers, why Employer’s Liability is more important than ever, and how BGES Group can help businesses secure the right coverage.

Workers’ Compensation Insurance: What It Covers

Workers’ compensation is a state-mandated insurance policy that provides financial benefits to employees who suffer work-related injuries or illnesses. Regardless of who is at fault, this insurance ensures employees receive medical treatment and wage replacement while protecting employers from lawsuits.

Key Coverages of Workers’ Compensation Insurance

1. Medical Expenses – Covers all necessary medical treatments, including doctor visits, hospital stays, physical therapy, prescriptions, and rehabilitation.
2. Lost Wages – Provides partial wage replacement for employees who cannot work due to a work-related injury or illness.
3. Disability Benefits – Covers temporary or permanent disabilities, whether partial or total, that prevent an employee from returning to work.
4. Death Benefits – Provides financial support to the dependents of an employee who dies due to a work-related incident.

While workers’ compensation insurance is comprehensive, it does not fully shield employers from liability. That’s where Employer’s Liability Insurance comes into play.

Employer’s Liability Insurance: A Crucial Layer of Protection

Employer’s Liability Insurance is included in most workers’ compensation policies but serves a distinct purpose: It protects businesses against lawsuits filed by employees or their families for work-related injuries that aren’t fully covered by workers’ comp.

What Employer’s Liability Covers

1. Third-Party Lawsuits – If an injured employee sues a third party (such as a manufacturer of faulty equipment), that third party may, in turn, sue the employer.
2. Loss of Consortium Claims – If an employee’s injury impacts their family, their spouse may file a lawsuit for loss of companionship or household contributions.
3. Consequential Bodily Injury – If a family member of the injured employee suffers illness or injury as a direct result of the employee’s injury, they may sue the employer.
4. Dual Capacity Lawsuits – If an employee is injured by a product manufactured by their employer, they may sue the company as both their employer and as the manufacturer.

These claims can lead to significant financial exposure beyond standard workers’ compensation benefits, making Employer’s Liability Insurance a crucial safeguard.

Why More Organizations Require $1 Million Employer’s Liability Limits

A decade ago, many businesses carried minimum Employer’s Liability limits of $100,000 per employee injury, $500,000 per disease policy limit, and $100,000 per disease per employee. Today, more companies, contractors, and hiring firms are demanding $1 million limits or higher—but why?

1. Rising Litigation Costs
   Legal costs have soared in recent years, making even small lawsuits expensive. Many settlements exceed six or seven figures, so businesses need higher coverage limits to avoid catastrophic financial losses.
2. Increased Workplace Injury Claims
   Workplace injury lawsuits are rising, particularly in high-risk industries like construction, manufacturing, and transportation. Organizations want to ensure their subcontractors and vendors have sufficient coverage to avoid being pulled into costly lawsuits.
3. Contractual Requirements
   Many large corporations and government contracts now require vendors to carry $1 million in Employer’s Liability coverage before they can work on a project. Businesses without adequate limits risk losing out on valuable contracts.
4. Third-Party Lawsuits Are Becoming More Common
   More third-party over-action claims are being filed, where injured employees sue equipment manufacturers, general contractors, or property owners—who then sue the employer for contribution. High Employer’s Liability limits help businesses absorb these costs.
5. Coverage Gaps Could Bankrupt a Business
   Without sufficient limits, a single claim could financially devastate a small or mid-sized business. Many organizations are now proactively increasing their limits rather than taking that risk.

Real-World Examples of Employer’s Liability Claims

To illustrate why high limits are essential, here are a few real-world scenarios where Employer’s Liability Insurance would be critical:

Case #1: The Construction Worker Injury
A subcontractor’s employee falls from scaffolding at a job site and suffers a permanent disability. The injured worker receives workers’ compensation but then sues the general contractor. The general contractor, in turn, sues the subcontractor for not maintaining a safe work environment. The subcontractor’s Employer’s Liability Insurance helps cover the settlement costs.

Case #2: Defective Equipment Lawsuit
A warehouse worker loses a finger while using a defective machine. The worker sues the machine manufacturer, but the manufacturer claims improper maintenance by the employer caused the injury. The employer now faces a third-party over-action lawsuit, which Employer’s Liability Insurance helps defend against.

Case #3: Family Member’s Injury Claim
An employee contracts a work-related disease and unknowingly exposes their spouse, who becomes ill as well. The spouse sues the employer for negligence. Employer’s Liability Insurance steps in to cover legal costs and settlements.

How BGES Group Can Help Your Business

At BGES Group, we specialize in helping businesses find the right Workers’ Compensation and Employer’s Liability coverage to meet their industry’s demands. Whether you’re a contractor, manufacturer, trucking company, limousine service, or small business owner, we can:

✔ Secure competitive pricing for your workers’ compensation coverage
✔ Ensure your Employer’s Liability limits meet contract requirements
✔ Find solutions for high-risk industries
✔ Help businesses avoid costly claims and lawsuits
✔ Provide expert advice on risk management and compliance

Take Action Today – Contact BGES Group

With workplace injury lawsuits on the rise and more organizations demanding higher coverage limits, now is the time to review your workers’ compensation policy and Employer’s Liability limits.

Contact Gary Wallach at BGES Group today:
📞 914-806-5853
📧 bgesgroup@gmail.com
🌐 www.bgesgroup.com

Don’t wait until you’re faced with a lawsuit—protect your business now with the right coverage!

If you’re frustrated with your workers’ compensation insurance, you’re not alone. Many business owners find themselves battling rising costs, unfair audits, and a lack of proper credits. The good news? There’s a better way.

At BGES Group, we specialize in helping businesses like yours secure fair, transparent, and affordable workers’ compensation coverage. But first, ask yourself these ten critical questions:

10 Questions to Ask About Your Workers’ Comp Coverage

1. Are you sick and tired of invasive annual audits that seem designed to penalize you rather than ensure accuracy?
2. Do you feel like you’re not getting the proper experience modification factor credits, costing you thousands in unnecessary premiums?
3. Has your insurer classified your payroll incorrectly, leading to inflated costs?
4. Do you dread your renewal because of a large annual deposit requirements?
5. Do you need workers’ comp coverage in multiple states, but your company is not able to cover your properly?
6. Has your insurance company unfairly increased your rates?
7. Do you find it nearly impossible to speak with a knowledgeable representative when you have questions about your policy?
8. Are you working with an agent who simply renews your policy without looking for ways to reduce your costs?
9. Has your current provider failed to offer proactive risk management strategies to help reduce workplace injuries and claims?
10. Are you tired of last-minute surprises, like unexpected rate hikes, hidden fees, or cancellation threats?

If you answered “yes” to even one of these questions, it’s time to rethink your workers’ compensation insurance provider.

What BGES Group Can Do for You

At BGES Group, we believe that workers’ compensation should work for you, not against you. Here’s how we can help:

• Honest and Transparent Pricing – We ensure that your payroll is classified correctly and that you receive all the credits and discounts you deserve.
• Expert Audit Support – No more aggressive, unfair audits. We work with you to ensure accuracy and fairness.
• Coverage for Multi-State Businesses – Whether you operate in New York, New Jersey, Connecticut, or beyond, we help navigate complex regulations.
• Lower Deposits & Better Payment Plans – Stop dreading renewals. We help secure policies with reasonable upfront costs and payment flexibility.
• Proactive Risk Management – We help you implement workplace safety measures to reduce claims and keep costs down.
• Dedicated Customer Support – You get a direct line to an expert who knows your business and is available when you need them.

Who We Serve

We specialize in workers’ compensation insurance for all industries, including:

• Contractors (including higher-risk trades like asbestos, demolition, and roofing)
• Manufacturers
• Moving & Storage Companies
• Trucking & Transportation Businesses
• Auto Service Companies
• Limousine Services
• Other Small to Mid-Sized Businesses

Whether you have one location or operate across multiple states, we have solutions tailored for you.

Let’s Fix Your Workers’ Comp Insurance Today!

If you’re fed up with your current workers’ compensation provider, don’t wait until renewal season to make a change. The BGES Group is here to help.

Call or email Gary Wallach today for a no-obligation consultation!

📞 914-806-5853 📧 bgesgroup@gmail.com

Website: www.bgesgroup.com

Take control of your workers’ comp costs and coverage today with a team that works for you, not the insurance companies!

Workers compensation insurance is a crucial requirement for businesses in New York, especially for high-risk industries like construction. Understanding how premiums are calculated can help businesses manage costs and ensure compliance. This article provides a step-by-step guide on how workers compensation premiums are determined for a New York-based general contractor handling carpentry (5403), drywall (5445), and tile work (5348).

Step 1: Determining the Classification Codes and Rates

Workers compensation premiums are primarily based on classification codes assigned by the New York Compensation Insurance Rating Board (NYCIRB). Each trade has a specific classification code and corresponding rate per $100 of payroll. For our general contractor example:

• Carpentry (5403): Involves framing, roofing, and other woodwork tasks.
• Drywall (5445): Covers the installation of drywall panels, including taping and finishing.
• Tile Work (5348): Includes tile and stone installation for flooring and walls.

Each of these classifications has a different level of risk, which is reflected in their individual rates.

Step 2: Estimating the Annual Payroll

Workers compensation premiums are calculated based on the employer’s total payroll for each classification. If our contractor estimates the following payroll for each category:

• Carpentry (5403): $500,000
• Drywall (5445): $400,000
• Tile Work (5348): $300,000

The total payroll for all classifications is $1,200,000.

Step 3: Applying the Manual Rate

Each classification code is assigned a manual rate by NYCIRB. For illustration purposes, let’s assume the following rates:

• Carpentry (5403): $10.00 per $100 of payroll
• Drywall (5445): $9.00 per $100 of payroll
• Tile Work (5348): $8.50 per $100 of payroll

To calculate the base premium for each classification:

• Carpentry (5403): ($500,000 / 100) × $10.00 = $50,000
• Drywall (5445): ($400,000 / 100) × $9.00 = $36,000
• Tile Work (5348): ($300,000 / 100) × $8.50 = $25,500

The total manual premium before any modifications is $111,500.

Step 4: Experience Modification Factor (EMR)

The Experience Modification Factor (EMR) adjusts the premium based on the employer’s claims history compared to industry averages. An EMR of 1.0 means the business has an average claims record, while a lower EMR (e.g., 0.90) results in a discount, and a higher EMR (e.g., 1.20) leads to a surcharge.

If our contractor has an EMR of 0.95, the adjusted premium is:

• $111,500 × 0.95 = $105,925

Step 5: Additional Modifications and Discounts

Other factors can influence the final premium, including:

• Scheduled Credits/Debits: Adjustments based on safety programs, drug-free workplace policies, etc.
• New York State Assessments and Fees: Additional charges for administrative costs and industry assessments.
• Policyholder Dividends: Some insurers offer rebates for low claim activity.

For example, if the contractor qualifies for a 5% safety credit, the premium is reduced further:

• $105,925 × 0.95 = $100,628.75

Step 6: Final Premium Calculation

After applying all adjustments, the contractor’s final premium for workers compensation insurance would be approximately $100,628. However, actual premiums may vary depending on insurer-specific underwriting criteria, payment plans, and other factors.

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Why Choose BGES Group for Your Workers Compensation Needs?

If you’re struggling with high workers compensation premiums, claim issues, or compliance concerns, BGES Group can help. As one of the Tri-State area’s top workers compensation specialists, we assist businesses in reducing costs and securing the best coverage.

Our Services Include:

• Premium Reduction Strategies: We help you qualify for lower rates through proper classification, safety programs, and risk management.
• Claims Management: Proactive claims handling to minimize costs and reduce your EMR.
• Compliance Support: Ensuring your business meets all New York State workers compensation regulations.
• Customized Insurance Solutions: Finding the right carrier and policy to fit your specific business needs.

Contact BGES Group Today

If you want expert guidance on workers compensation insurance, BGES Group is here to assist. Contact us today to discuss your coverage needs and discover how we can help you save.

• Website: www.bgesgroup.com
• Phone: Gary Wallach – 914-806-5853
• Email: bgesgroup@gmail.com

Don’t let high premiums and insurance headaches hold your business back. Reach out to BGES Group today and let us find the best workers compensation solution for you!

If you’re a New York contractor, this news could have a major impact on your business. Unless things change, a major insurance company is set to non-renew all contractor insurance policies in New York, effective April 1, 2025.

We are not putting the company’s name in writing for legal reasons, but if you call us, we will tell you over the phone.

This could leave thousands of contractors scrambling for coverage in an already difficult insurance market. If you are insured with this carrier, you must take action now to avoid gaps in your coverage, skyrocketing premiums, or being left without insurance altogether.

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Why Is This Happening?

The New York insurance market for contractors is in crisis. High claims, rising legal costs, and strict labor laws—especially Labor Law 240/241—have made it harder for insurers to remain profitable.

As a result, many large carriers are either:

• Leaving the market completely
• Restricting who they will insure
• Raising rates significantly

This latest decision by a major carrier to drop all New York contractors is a clear warning sign that the insurance landscape is becoming even more challenging.

If you currently have a policy with this company, waiting until your renewal notice arrives will put you at a major disadvantage. Many contractors will be competing for limited policies, and the best options will disappear quickly.

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What Should You Do Now?

The best way to protect your business is to start exploring your options immediately. BGES Group specializes in helping contractors secure quality coverage at competitive rates, even in this tough market.

We work with top-rated insurance companies that are still actively writing contractor policies in New York, and we know how to navigate the challenges posed by Labor Law 240/241 and other industry risks.

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10 Great Reasons to Contact BGES Group for Your Business Insurance Needs

At BGES Group, we’ve been helping New York contractors get the best possible coverage at competitive rates for years. If you’re facing a non-renewal or want to explore better insurance options, here are 10 reasons why you should contact us today:

1. We Specialize in New York Construction Insurance

Many general insurance brokers don’t fully understand the unique risks New York contractors face. We do. Our expertise ensures you get the right coverage—without paying for things you don’t need.

2. Exclusive Programs for High-Risk Trades

Some agencies cannot get affordable coverage for roofers, scaffolders, and demolition contractors—but we can. We have access to exclusive programs designed for high-risk construction trades.

3. Competitive Pricing on General Liability & Umbrella Insurance

As more carriers leave the market, rates are expected to rise. We work with multiple top-rated insurers to find you the most competitive pricing available.

4. Labor Law 240/241 Coverage Included

Many policies exclude or limit coverage for these costly labor law claims, leaving contractors exposed to massive lawsuits. We make sure your general liability and umbrella insurance include proper protection for these claims.

5. Fast Turnaround on Quotes

If your current carrier is non-renewing your policy, you don’t have time to wait. Our team works quickly and efficiently to get you the best quotes and coverage without delays.

6. Workers’ Compensation Solutions for All Contractors

Whether you need a standalone workers’ comp policy or a bundled solution with payroll services, we have the right coverage for you—at the best possible price.

7. Personalized Service from Industry Experts

When you call BGES Group, you’re speaking directly with industry professionals like Gary Wallach, who has decades of experience in New York construction insurance. We work for YOU—not the insurance companies.

8. Assistance with Compliance & Certificate Management

Keeping up with insurance compliance and certificates is a hassle for many contractors. We help make sure your policies meet owner and GC requirements so you don’t get held up on job sites.

9. Access to Multiple Top-Rated Insurance Carriers

Since one major carrier is leaving the market, it’s more important than ever to have options. We work with a wide range of top-rated insurance companies that are still writing contractor policies in New York.

10. We Are Contractor Insurance Specialists

Unlike agencies that handle all types of insurance, we focus specifically on contractors. This means we know exactly what policies, coverages, and endorsements you need to stay protected—and compliant.

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What Happens If You Don’t Take Action?

If you wait until your policy is non-renewed, you could face:

• Higher premiums due to limited availability
• Coverage gaps that put your business at risk
• Delays getting insured, which could impact your ability to work

By acting now, you can secure a better policy at a competitive price before the rush begins.

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Contact BGES Group Today

If you want to know the name of the carrier that’s dropping all New York contractors, call us. We can discuss your current policy and help you find a better, more reliable insurance solution.

📞 Call Gary Wallach: 914-806-5853
📧 Email: bgesgroup@gmail.com

We specialize in protecting New York contractors, and we’re here to make sure your business stays covered and compliant—no matter what happens in the insurance market.

⏳ Don’t wait until it’s too late. Call us today!

10 Things New York General Contractors Should Look for in Their General and Umbrella Liability Policies

As a general contractor in New York, securing the right General and Umbrella Liability insurance is crucial to protecting your business from costly lawsuits and claims. Not all policies are created equal, and failing to have the right coverage can leave you exposed to significant financial risk. Here are 10 key things you should look for when reviewing your liability policies:

1. Labor Law (Scaffold Law) Coverage

New York’s Labor Laws 240 and 241 hold contractors and property owners strictly liable for elevation-related injuries. Without proper coverage, you could be personally on the hook for massive settlements and legal fees.

2. Additional Insured Endorsements

Many contracts require you to list owners, developers, and subcontractors as additional insureds. Make sure your policy provides this coverage on both an ongoing and completed operations basis.

3. Primary & Non-Contributory Wording

Your policy should clearly state that it pays first (primary) and doesn’t seek contribution (non-contributory) from other policies, as required in many construction contracts.

4. Action Over / Third-Party Over Exclusions

This exclusion can prevent coverage for lawsuits filed by injured subcontractor employees. Avoid policies with this exclusion or work with an expert to ensure proper coverage is in place.

5. Contractual Liability Coverage

Your policy should cover liability you assume under contracts with project owners, developers, or subcontractors. Review the exclusions carefully.

6. Completed Operations Coverage

Claims can arise years after a project is finished. Ensure your general liability policy includes long-term completed operations coverage to protect against future lawsuits.

7. Defense Costs Outside the Limits

If your legal defense costs are included within your policy limits, they could quickly eat up your coverage. Opt for a policy that provides defense costs in addition to your liability limits.

8. High Umbrella Limits

A $1 million general liability policy is often not enough in construction. Many contracts require $5M, $10M, or more in umbrella coverage. Make sure you carry sufficient limits.

9. Per Project Aggregate Limits

Instead of one coverage limit spread across all projects, a per project aggregate ensures you have full coverage for each job, rather than sharing a single limit across multiple projects.

10. Subcontractor Coverage Compliance

Your policy should require subcontractors to carry proper coverage and name you as an additional insured. This helps shift liability away from you in case of a claim.

BGES Group: The Construction Insurance Experts for NY, NJ & CT Contractors

Navigating liability insurance for construction in New York, New Jersey, and Connecticut is complex—but that’s where BGES Group comes in.

We specialize in construction insurance and understand the unique risks general contractors face. Whether you need to upgrade your current policies, secure better pricing, or ensure contract compliance, we are here to help.

Contact BGES Group Today!

☎ Call: Gary Wallach at 914-806-5853
✉ Email: bgesgroup@gmail.com
🌐 Visit: www.bgesgroup.com

Let’s make sure your business is properly protected with the right coverage at the best rates available!