If you’re a construction or contracting business, an unannounced OSHA visit can be one of the most stressful events you face. And when that visit stems from a complaint made by one of your own employees, it’s even more sensitive.

Understanding how OSHA handles these complaints — and how you should respond — can mean the difference between a quick resolution and a formal investigation (or worse, fines and citations).

Here’s what you need to know.

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Why OSHA Inspects Workplaces

OSHA (Occupational Safety and Health Administration) conducts inspections for several reasons:

• After serious injuries or fatalities
• As part of industry-specific inspection programs
• At random
• In response to employee complaints

When a worker believes there’s a serious safety risk, they have the right to file a complaint with OSHA. That complaint can trigger a formal inquiry or a full inspection, depending on the severity and validity of the allegations.

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When a Complaint Triggers an Inspection

Not every employee complaint leads to a site visit. OSHA uses specific criteria to decide whether a formal inspection is necessary.

To qualify for an on-site inspection or deeper investigation, the complaint must:

• Come from a current employee or employee representative
• Include detailed information that suggests a serious safety violation or imminent danger
• Involve a known hazard that injured or sickened a worker and still exists
• Relate to a high-hazard industry or a facility already scheduled for inspection
• Concern a company recently cited for egregious or willful violations

If none of these apply, OSHA may conduct a complaint inquiry instead of an in-person visit.

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What Happens During a Complaint Inquiry

Let’s say an employee complains to OSHA that you don’t follow lockout/tagout procedures during equipment maintenance. If OSHA considers this a valid concern but not urgent enough for an immediate inspection, they will initiate a complaint inquiry — a process handled by phone or email.

Here’s what to expect:

1. Initial Contact: OSHA will inform you of the complaint and request your cooperation in addressing the issue.
2. Self-Investigation: You’ll be asked to investigate the claim internally and correct any verified issues.
3. Written Response: Within five working days, you must respond to OSHA with a written report outlining:
4. Posting the Complaint: You are required to post a copy of the complaint letter in a place visible to all employees.

If you ignore the inquiry, fail to provide an adequate response, or submit a response that OSHA deems unsatisfactory, a full inspection may follow.

Also, your response will be shared with the employee who filed the complaint. If they believe your response is inaccurate or inadequate, they may request an on-site OSHA visit.

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How to Respond — and What NOT to Do

This is a serious matter, and how you respond is critical. Here’s how to handle it professionally and effectively:

✅ Take the complaint seriously. Even if you think it’s unfounded, treat the issue with respect and urgency.

✅ Respond thoroughly and promptly. Address each point in the complaint clearly, with supporting documents or photos when possible.

✅ Fix any real hazards. If there’s a legitimate issue, fix it immediately — and document what you’ve done.

✅ Stay professional. Don’t focus on who made the complaint. Avoid retaliating or even mentioning the employee. OSHA considers retaliation a serious violation.

❌ Don’t delay. Failing to respond within the 5-day window increases your risk of an inspection.

❌ Don’t make assumptions. Even a minor issue can become a big one if not addressed properly.

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Final Thoughts

Whether you believe the complaint is valid or not, OSHA expects you to act responsibly. Handle it like you would a client issue — investigate, correct, and communicate. Doing so can help you avoid a formal inspection and show that you’re committed to workplace safety.

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BGES Group: Your Partner in Construction Risk Management

If you’re a contractor in New York, New Jersey, or Connecticut, OSHA compliance and safety regulations are not optional — they’re essential.

At BGES Group, we specialize in helping construction businesses protect themselves, reduce risk, and stay compliant. We’ll work with you to ensure your coverage is right, your safety practices are solid, and your business is protected from unexpected exposures.

📞 Call us today at (914) 806-5853 – Gary Wallach

Email: bgesgroup@gmail.com

🌐 Visit us at www.bgesgroup.com

Let’s make safety and compliance one less thing to worry about.

In today’s fast-paced business world, many companies — especially small to mid-sized ones — depend on employees to use their own cars for work. Whether it’s a quick supply run, a client meeting across town, or regular job site visits, the convenience of using personal vehicles often outweighs the cost and management of a company-owned fleet.

But while this may seem like a practical solution, it comes with a dangerous blind spot: if your company doesn’t carry non-owned auto insurance, you’re leaving yourself wide open to potentially devastating liability in the event of an accident.

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What Is Non-Owned Auto Insurance, and Why Should You Care?

Non-owned auto insurance is a critical safeguard that provides liability coverage for businesses when employees drive their own vehicles or rent cars for business purposes. While this policy does not cover physical damage to the employee’s or rental vehicle — that’s handled by their personal or rental insurance — it does protect your business from third-party claims for bodily injury and property damage if an accident occurs.

Typically added as an endorsement to a commercial general liability or commercial auto policy, non-owned auto insurance is essential for businesses that:

• Have employees use their personal cars to meet with clients or run business errands.
• Require staff to rent cars while traveling on company business.
• Use part-time or temporary workers who rely on their own vehicles for work duties.
• Employ delivery drivers who do not operate company-owned vehicles.

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Don’t Rely Solely on Personal Auto Insurance

Many business owners assume their employees’ personal car insurance will cover everything. That’s a costly mistake.

Here’s the reality: while personal auto insurance is usually the first line of defense in an accident, most personal policies have serious limitations when it comes to business use. Some policies explicitly exclude coverage for work-related driving. Even when they don’t, the coverage limits are often the bare minimum required by the state — far too low to cover a serious accident.

Let’s say one of your employees rear-ends another vehicle while driving to a client meeting. The crash results in serious injuries and a lawsuit. If the employee’s personal auto policy has a $25,000 liability limit (as many do), and the damages are $200,000, guess who’s next in line to pay?

Your business.

That’s where non-owned auto insurance steps in — as excess liability coverage. Once the employee’s personal limits are maxed out, this policy picks up the rest. Without it, your company could be responsible for the remaining balance — including attorney fees, court costs, medical bills, and damages.

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The Real-World Risks of Going Without Coverage

Operating without non-owned auto insurance isn’t just risky — it could be catastrophic.

Here’s why:

• Lawsuits Are Inevitable: If an employee causes an accident on company time, your business will likely be sued. Plaintiffs and attorneys target employers, knowing companies typically have more assets than individuals.
• Judgments Can Be Massive: A single injury lawsuit can easily reach six or seven figures. For a small or mid-sized business, that can mean bankruptcy.
• Insurance Gaps Are Common: You may assume the employee’s policy is enough — but if that policy excludes business use or offers low coverage, you’re exposed.
• Rental Vehicles Aren’t Covered Either: If your employees rent vehicles for business trips and decline the rental company’s insurance (as many do), your business is at risk for liability claims if there’s an accident.

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What Can You Do to Protect Your Company?

If your employees ever drive for work — even just occasionally — you need to take proactive steps:

1. Add Non-Owned Auto Coverage Now
   This is one of the most cost-effective additions to your insurance portfolio. It’s usually very affordable and easy to include as part of your general liability or commercial auto policy.
2. Set Minimum Personal Auto Limits for Employees
   Require employees who drive their own vehicles for business to carry higher-than-minimum liability limits — such as $100,000 per person/$300,000 per accident. If they’re driving on your behalf, their low limits put you at risk.
3. Create a Vehicle Use Policy
   Clearly define when and how employees may drive for business purposes. Set expectations around insurance requirements, safe driving practices, and accident procedures.
4. Educate Your Team
   Make sure employees know what to do if they’re in an accident while driving for work. Provide clear guidance on reporting procedures, documentation, and insurance claims.

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Don’t Wait Until It’s Too Late

If your business allows — or even expects — employees to use their personal cars or rental vehicles for any work-related tasks, non-owned auto insurance is not optional. It’s a critical shield that could save your company from financial ruin in the wake of a serious accident.

Remember: your employee may be behind the wheel, but your business is riding shotgun. Without proper coverage, one wrong turn can lead to costly lawsuits, damaged reputations, and permanent closure.

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Need Help Protecting Your Business? Turn to the Experts.

BGES Group is one of the New York Tri-State Area’s leading construction insurance specialists, proudly serving businesses throughout New York, New Jersey, and Connecticut.

We understand the unique risks construction and contractor firms face — including the hidden exposures like non-owned auto liability. We’ll review your current coverage, identify gaps, and tailor a plan that fits your operations and budget.

📍 Contact BGES Group Today:
Phone: (914) 806-5853 – Gary Wallach
Email: bgesgroup@gmail.com
Website: www.bgesgroup.com

Don’t leave your company vulnerable. Let BGES Group help you drive safely into the future.

If you’re a business owner in New York, New Jersey, or Connecticut, and you’re feeling the pressure of rising workers’ compensation costs or struggling with payroll compliance, you’re not alone. Many companies—especially those in construction, manufacturing, or logistics—reach a breaking point where their current insurance and payroll setup just doesn’t cut it anymore. Whether you’re dealing with high premiums, audit surprises, employee classification headaches, or cash flow issues, now may be the perfect time to explore a better solution.

At BGES Group, we specialize in helping companies just like yours find smarter, more cost-effective ways to manage workers’ compensation and payroll. One of our most powerful solutions? A customized program where your workers’ comp and payroll are bundled into a single streamlined system—eliminating many of the administrative headaches that come with running a business.

We work with trusted national programs that have already helped thousands of businesses reduce costs, stay compliant, and improve employee satisfaction. We won’t name them here, but let’s just say you’ll get all the benefits of a Fortune 500-level solution—without having to be one.

10 Big Benefits of Joining One of Our Comprehensive Workers’ Comp and Payroll Programs

Here are ten reasons why more and more business owners are switching over:

⸻

1. Pay-As-You-Go Premiums

No more large upfront deposits or playing catch-up at audit time. You pay workers’ comp premiums each time you run payroll, based on actual wages paid—improving cash flow and minimizing surprises.

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2. Competitive Rates, Even for Tough Industries

Whether you’re in roofing, demolition, construction, or another high-risk field, we can often secure rates much lower than what traditional insurance markets offer—even if you’ve had claims in the past.

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3. No Year-End Audits

Say goodbye to time-consuming, stressful audits. With real-time wage tracking and automatic premium calculation, there’s no need for reconciliation or risk of an unexpected balance due at the end of the year.

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4. Instant Coverage Certificates

Need a certificate of insurance fast to get on a job site? Our programs provide on-demand COIs, so you never have to delay work due to paperwork.

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5. Better Claims Management

Injuries happen. When they do, it’s critical to have a claims team that fights for your interests. Our partners are aggressive about managing claims, reducing costs, and getting your employees back to work quickly.

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6. Payroll Compliance Without the Stress

Stay compliant with all state and federal payroll regulations. From wage and hour rules to tax filings, everything is handled—reducing your risk of costly mistakes or penalties.

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7. Employee Onboarding Made Easy

New hire paperwork, I-9 verification, and reporting? All handled through a centralized, digital system—saving you time and avoiding compliance pitfalls.

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8. Access to Direct Deposit and Pay Stubs Online

Offer employees convenient, modern payroll benefits like direct deposit, pay stubs, and tax forms—all accessible online 24/7.

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9. HR Support When You Need It

Need help with terminations, write-ups, or employee policies? You get access to certified HR professionals who can guide you through difficult employee situations and protect your business from liability.

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10. Time Tracking and Job Costing Tools

Track employee hours, project labor costs, and job site activity with integrated tools that give you better visibility and control over your bottom line.

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Why BGES Group?

At BGES Group, we aren’t your typical insurance brokers. We’re workers’ compensation specialists who work primarily with businesses in tough, high-risk industries. We’ve spent over 44 years helping contractors, manufacturers, trucking companies, and other employers reduce costs and avoid coverage headaches.

Our job is to find you the best solution—one that improves your coverage, saves you money, and lets you focus on growing your business. We work with a national network of payroll and insurance partners that offer tailored programs most local brokers don’t have access to. That means we can get you coverage and rates others can’t—and we stand by you throughout the life of your policy.

Whether you’re a startup, growing rapidly, or have had workers’ comp issues in the past, we have options that can help you move forward with confidence.

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Let’s Talk About Your Business

If you’re frustrated with your current payroll or workers’ comp setup, give us a call. Let us show you how a better solution could transform the way you run your business.

Contact BGES Group Today:

Gary Wallach, Workers’ Compensation Specialist

📞 914-806-5853

📧 bgesgroup@gmail.com

🌐 http://www.bgesgroup.com

We serve businesses throughout New York, New Jersey, and Connecticut, and through our partners, we can assist companies across the United States.

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Final Thought

There’s a reason so many business owners are switching over to modern payroll and workers’ comp programs—they’re faster, cheaper, and safer for your business. If your current setup isn’t working for you anymore, don’t wait until audit season or your next premium hike. Let BGES Group help you get the protection and support you need.

Your business deserves more than just an insurance policy—it deserves a partner. Let’s work together.

Navigating the world of contractor insurance can sometimes feel overwhelming, especially when trying to understand costs involved. Whether you’re a seasoned contractor or new to the field, having a firm grasp on insurance costs is crucial. Here are some important questions to ask to ensure you’re getting the coverage you need without overspending.

1. What’s Included in the Basic Package?

Understanding what is covered in a basic insurance package helps you know what fundamental protections you’re paying for. Typically, contractor insurance can include general liability, which covers bodily injury and property damage, and workman’s compensation for employee injuries. Familiarizing yourself with these foundational elements ensures you’re making a smart, informed decision about your coverage needs. If additional coverages are needed, such as professional liability or commercial auto insurance, it’s beneficial to consider these options early on to prevent potential liabilities.

While the basic package provides standard protection, it’s important to assess whether it aligns with your specific business activities. For instance, if you frequently work with hazardous materials, you might require an environmental liability policy. Additionally, understanding the specifics of included coverages helps prevent overlaps and untapped opportunities within your insurance. Exploring every aspect of your basic package can lead to better decisions, safeguarding your business against unforeseen events more efficiently.

2. Which Factors Affect My Premiums?

Explore the various factors such as business size and location that can influence the cost of your premiums. A small, local contractor might pay significantly less than a larger, nationwide company. Furthermore, the nature of the work affects costs; high-risk industries typically face higher premiums. Engaging with local resources and understanding regional nuances can help mitigate rising premium expenses.

Keep in mind that past insurance claims, your business credit score, and even safety protocols you integrate into daily operations can adjust the final pricing. For instance, maintaining a safety-first approach could result in more favorable premium rates. Asking your insurance provider about these specific details helps you better prepare and potentially access customized packages that address your unique circumstances.

3. Are There Discounts Available?

Learn about potential discounts for bundling policies or maintaining a claim-free history which can reduce overall costs. Many insurers may offer loyalty discounts or encourage setting up long-term policies by providing premium reductions. Additionally, ask about discounts for implementing safety programs or being part of professional associations that foster safer working conditions.

Bundling different types of insurance, like liability and property, can lead to considerable savings. It’s worth discussing with your insurer whether there’s room for negotiating lower rates, especially when multiple policies are purchased together. Review all available discounts with your provider to ensure you’re not missing out on significant cost savings opportunities.

4. How Does My Claims History Impact My Cost?

Understand how previous claims can affect your current and future insurance costs. Insurance companies use your claims history to assess risks, and frequent claims might elevate premiums. It’s important to be transparent with your provider about past incidents and focus on implementing strategies to reduce future claims, which can help balance costs over time.

Maintaining open communication with your insurer about how to improve your claim history can lead to tailored advice on risk management. Building a track record of infrequent claims will not only benefit your insurance expenses but demonstrate due diligence to potential clients, enhancing your reputation in the industry.

5. What Does the Policy Not Cover?

Identify exclusions in your policy to avoid unexpected gaps in coverage. These exclusions could include specific high-risk operations or certain natural disasters. It’s crucial to read through your policy documentation carefully and discuss any unclear exclusions with your insurance provider to ensure you’re fully aware of what’s not covered.

Learning what a policy excludes can prompt you to purchase additional riders or endorsements, which can better suit your business activities. Discuss these with your insurer and understand their importance in bridging any critical gaps that could leave your business vulnerable to increased risk.

6. Is Coverage State-Specific?

Different states may have varying requirements. Discover if your coverage meets local regulations. This is essential for contractors working across multiple states or localities with distinct licensing and insurance mandates. Whether the policy covers all jurisdictions or requires state-specific endorsements should be clarified with your provider.

State laws can also impact the types of insurance you need and the amount of coverage required. Getting familiar with these differences beforehand helps in ensuring compliance, thus avoiding penalties or policy voidance that could result from operating without adequate coverage in a particular area.

7. Can I Customize My Coverage?

Discuss the possibilities of tailoring policy details to better suit your specific contractor needs. Flexible policies could allow you to adjust limits, add endorsements, or bundle insurance types that align with your business operations. Working directly with an insurance agent can facilitate a custom plan that addresses diverse projects and operational scopes.

Customization not only optimizes coverage but can also result in savings, as unused coverages that drive up costs can be removed. Before settling on a policy, see how flexible it is in allowing you to switch coverages as your business grows or pivots in focus, enabling you to adapt quickly to new market demands without compromising on protection.

8. How Often Should I Review My Policy?

Learn about the recommended frequency for policy reviews to ensure your coverage stays relevant. Regular check-ins can reveal necessary adjustments as your business evolves. Changes in operation scale, added services, or shifts in market demands warrant a closer look for up-to-date coverage that meets new risk exposures.

Annual reviews are often suggested, but significant business changes should trigger immediate reassessment. During these reviews, look at your claims history, coverage gaps, and any endorsements that might be added or removed to align better with your evolving business landscape, ensuring your protection consistently matches your operational profile.

9. Are There Penalties for Early Cancellation?

Understand the potential financial implications if you decide to cancel your policy before its term ends. Many insurers impose penalties or fees for early termination, which could offset any cost savings you hoped to achieve. Awareness of these potential costs helps in planning transitions effectively.

If you anticipate changes that might require policy cancellation, explore options in advance, such as conversion or rider options that cater to new coverage needs without the need for cancellation. Discuss flexibility within your policy to make informed decisions that minimize financial impact.

10. What Are the Payment Options?

Explore different payment plans that might be available to ease financial management. Some insurers offer installment plans or discount incentives for paying upfront annually. Understanding these options can facilitate budgeting for insurance expenses more efficiently.

Ask your provider if there are financial benefits tied to specific payment methods, such as electronic transfers or scheduled payments. Tailoring the payment plan to suit your business’s cash flow needs helps manage outgoings while maintaining up-to-date coverage, ensuring smooth operation without interruption.

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 New York’s high-risk construction industry, General Contractors (GCs) and subcontractors face enormous legal and financial exposure. A common risk transfer strategy is requiring subcontractors to list the GC, the project owner, and other upstream parties—such as property managers, developers, and lenders—as Additional Insureds (AIs) on their liability insurance policies.

But here’s the reality: simply asking to be named as an AI isn’t enough anymore.

Many modern insurance policies—especially those written by surplus lines carriers—mandate a direct written agreement between the subcontractor and each upstream party requesting Additional Insured status. If such an agreement doesn’t exist, insurers can and do deny coverage, leaving GCs and owners exposed to lawsuits, defense costs, and settlements.

The solution? A short, signed “side agreement” between all parties.

And here’s a critical step that’s often overlooked:

At the time of negotiating the subcontract, the subcontractor should ask the General Contractor to ensure that all upstream parties (owner, property manager, lender, etc.) agree in writing to be part of the AI agreement. This ensures that coverage will trigger if a claim arises—and prevents costly surprises later.

Let’s walk through the risks, the solution, a sample agreement, and how BGES Group can help contractors across New York, New Jersey, and Connecticut navigate it all with confidence.

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Why a Written Agreement Matters

Most construction liability policies—especially surplus lines forms—state that Additional Insured coverage only applies when there is a written contract or agreement directly between the subcontractor and the Additional Insured party. Without that, even if the COI and endorsements look perfect, the carrier may refuse to defend or pay a claim.

You might think your contract with the GC covers it. It doesn’t—unless the GC and upstream parties are all included in a valid, signed agreement with the subcontractor. Many policies strictly interpret this condition.

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The Smartest Move: Make the GC Responsible for Upstream Signatures

To avoid being left in a dangerous position, subcontractors should negotiate the following condition into the subcontract:

“General Contractor agrees to obtain the written agreement and signature of all upstream parties (owner, property manager, lender, etc.) confirming their agreement to be named as Additional Insureds on Subcontractor’s insurance policy for both ongoing and completed operations.”

This puts the responsibility where it belongs—with the GC, who has the relationships and leverage to obtain those signatures from upstream entities. It also ensures that the subcontractor’s carrier can’t deny coverage later because of a missing written agreement.

This one step can be the difference between having insurance work for you—or watching it fall apart during a million-dollar claim.

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The Power of a Side Agreement

A simple side agreement—signed by all parties—satisfies the policy’s written agreement requirement and avoids the cost and time involved in securing custom endorsements.

This document:

• Provides legal clarity

• Meets insurer conditions

• Costs nothing to implement

• Prevents denied AI coverage

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Sample Direct Written Agreement for Additional Insured Coverage

DISCLAIMER: This is a sample for educational purposes only. We are not attorneys and this is not legal advice. Always have your contracts reviewed by legal counsel.

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ADDITIONAL INSURED AGREEMENT

This Agreement is made as of [Insert Date]

PARTIES:

• Subcontractor: [Subcontractor Company Name], [Address]

• General Contractor: [GC Company Name], [Address]

• Project Owner: [Owner Name or Entity], [Address]

• Property Manager: [If applicable]

• Lender/Mortgagee: [If applicable]

• Project Location: [Job Address or Project Name]

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PURPOSE

This Agreement sets forth the Subcontractor’s obligation to provide Additional Insured coverage to the above-named parties in connection with the project listed above.

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TERMS

1. Additional Insured Coverage

Subcontractor agrees to obtain and maintain Commercial General Liability insurance that names the General Contractor, Project Owner, Property Manager, and Lender as Additional Insureds for both ongoing and completed operations.

2. Primary and Non-Contributory

Such coverage shall apply on a primary and non-contributory basis with respect to any other insurance held by the Additional Insureds.

3. Waiver of Subrogation

Subcontractor agrees to waive subrogation rights in favor of all listed Additional Insureds.

4. Proof of Coverage

Subcontractor shall provide Certificates of Insurance and a copy of the policy endorsement naming all parties as Additional Insureds upon request. Certificates alone are not sufficient.

5. Policy Limits

Liability limits shall be no less than $1,000,000 per occurrence and $2,000,000 general aggregate, or as required by the contract.

6. Survival of Obligation

This obligation shall survive the completion of the work and remain in effect for the duration of applicable statutes of limitations and repose.

7. Indemnification Clause

Subcontractor shall indemnify and hold harmless the Additional Insureds from any and all liabilities arising out of their work to the fullest extent permitted by law.

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SIGNATURES

Subcontractor

Company: ____________________________

By: _________________________________

Title: _______________________________

Date: _______________________________

General Contractor

Company: ____________________________

By: _________________________________

Title: _______________________________

Date: _______________________________

Project Owner

Entity: _____________________________

By: _________________________________

Title: _______________________________

Date: _______________________________

Property Manager (if applicable)

Company: ____________________________

By: _________________________________

Title: _______________________________

Date: _______________________________

Lender/Bank (if applicable)

Entity: _____________________________

By: _________________________________

Title: _______________________________

Date: _______________________________

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Common Mistakes to Avoid

• Only relying on Certificates of Insurance – Not legally binding and often useless in a claim.

• Assuming the GC’s contract is enough – If you’re not a party to that agreement, you’re not protected.

• Failing to get upstream party signatures – This voids many surplus lines AI endorsements.

• Delaying until work begins – Agreements must be signed before any labor or materials hit the site.

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How BGES Group Helps Contractors Stay Covered

At BGES Group, we specialize in construction insurance for New York, New Jersey, and Connecticut—three of the toughest insurance environments in the country.

We help:

• General Contractors manage risk transfer and subcontractor compliance

• Subcontractors structure agreements to meet insurance policy conditions

• Owners and Developers get peace of mind that they’re truly covered

We review contracts, explain your insurance obligations in plain English, and guide you on implementing cost-effective, policy-compliant agreements that protect your business.

⸻

Contact BGES Group Today

If you want to ensure your Additional Insured protection will hold up in court and with insurers, talk to us today.

📞 Gary Wallach

📍 BGES Group – NY Construction Insurance Specialists

📱 Call or Text: 914-806-5853

📧 Email: bgesgroup@gmail.com

🌐 Website: http://www.bgesgroup.com

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Final Word: In today’s legal and insurance climate, hoping your Certificate of Insurance will protect you is a recipe for disaster. Whether you’re a GC or subcontractor, the solution is simple: get it in writing—signed by all parties—before work begins. Let BGES Group help you set up these agreements the right way and keep your business protected.

If you’re a New York business owner struggling to renew your workers’ compensation insurance, you’re not alone. Carriers are tightening up, premiums are climbing, and losses or the type of work you do may be raising red flags. Whether you’re in construction, trucking, manufacturing, or any other high-risk industry, not having coverage can bring your operations to a halt—and fast.

But don’t panic. There are ways forward.

Here are 5 effective strategies that can help you secure new workers’ compensation coverage—even if traditional carriers are saying no.

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1. Reevaluate and Clean Up Your Loss History

If you’ve had claims in the past, insurers will want to know why—and what you’re doing to prevent more in the future. The first step is requesting and reviewing your loss run reports (you can get them from your current or previous carrier).

Check for errors. Are all the claims legitimate? Are the reserve amounts accurate? Are there any that should be closed? Having a broker help you dispute incorrect reserves or close outdated claims can make your loss profile look more favorable.

Then, show underwriters what you’ve done to improve. Maybe you’ve:

• Added safety protocols

• Introduced new training programs

• Installed updated equipment

• Removed higher-risk operations

Being proactive can go a long way in convincing carriers to take another look.

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2. Explore Assigned Risk Pool or State Fund Options

If you’ve exhausted the open market, you may qualify for New York’s Assigned Risk Pool (aka the NYSIF Voluntary Market or Residual Market). It’s not always the cheapest option, but it’s often the only lifeline for businesses turned down elsewhere.

You’ll need to submit an application and meet basic eligibility criteria. While coverage through NYSIF can be more expensive—especially if you’ve had losses or do high-hazard work—it does fulfill your legal obligation to carry coverage.

That said, working with a broker who knows how to move you out of the assigned risk pool and into a better program over time is key.

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3. Consider a Professional Employer Organization (PEO)

A PEO may be an option if you’re looking for a bundled solution that includes workers’ comp, payroll, HR support, and more. Some PEOs take on higher-risk businesses by pooling them with lower-risk ones to reduce overall exposure.

This can be a short- to medium-term solution while you clean up your loss history or transition to safer work. It’s not ideal for everyone (and can come with its own complexities), but when traditional coverage isn’t an option, it can keep your business running.

Make sure to work with a broker or consultant who can vet the PEO and explain the fine print before you sign up.

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4. Change the Structure of Your Business or Work Type

Sometimes you need to take a hard look at how you’re operating.

Do you have certain job classifications or employees driving up your premiums? Are you performing work that you could subcontract to specialists with their own coverage? Could you restructure your crews or roles?

For example:

• A construction firm doing high-rise work might limit itself to interior renovations until claims cool off.

• A trucking company with a few long-haul drivers might transition to local routes that carry lower premiums.

Even subtle changes to your operations can help you land a policy you couldn’t get before.

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5. Work with a Specialist Like BGES Group

Let’s face it: not all brokers are equipped to deal with tough risks. That’s where the BGES Group comes in.

We specialize in helping businesses just like yours—contractors, manufacturers, trucking companies, landscapers, tree services, and more—who are facing challenges with their workers’ compensation insurance.

At BGES Group, we don’t just “shop the market.” We solve problems. Whether you’ve got a tough loss history, are operating in a high-risk industry, or have been non-renewed by your carrier, we know where to go, what paperwork to prepare, and how to position your business to get coverage again.

Here’s what we do:

• Analyze your business and loss history

• Identify problem areas

• Find specialized markets, programs, or carriers that fit your risk

• Help you develop strategies to improve your risk profile over time

• Offer bundled coverage solutions when necessary (e.g., comp + liability)

We’ve helped dozens of New York business owners who thought they were “uninsurable.” Often, we find creative solutions that other brokers overlook entirely.

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Need Help? Contact BGES Group Today

If you’re being non-renewed, are stuck in the NYSIF pool, or your broker has thrown in the towel, it’s time to bring in a team that knows how to handle difficult workers’ comp cases.

Contact BGES Group:

• Gary Wallach, Workers’ Comp Specialist

• Phone: 914-806-5853

• Email: bgesgroup@gmail.com

• Website: http://www.bgesgroup.com

We work with businesses all across New York, and we have a network that covers New Jersey, Connecticut, and even nationwide options.

We’re here to help you stay in business, stay protected, and stop losing sleep over workers’ comp.

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Final Thoughts

Not being able to renew your workers’ compensation policy is stressful, but you’re not out of options. Whether you adjust operations, restructure risk, or get creative with how you approach coverage, help is out there.

And if you need a team that’s not afraid to dig in, troubleshoot, and fight for your business, reach out to BGES Group today.

Let’s find your way back to coverage—together.

New York contractors face some of the toughest insurance requirements in the country. With Labor Law exposure, high-risk job sites, and strict owner/GC demands, General and Excess Liability insurance is non-negotiable. But these policies, especially when written through surplus lines carriers, can cost $50,000, $100,000, or more per year.

To manage cash flow, many contractors turn to premium financing. It’s often necessary—but if mishandled, it can trigger cancellations, penalties, and even job shutdowns.

Here’s what contractors need to know about financing surplus lines policies the smart way—and how BGES Group can help you avoid costly mistakes.

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How Premium Financing Works for Surplus Lines

When you finance a surplus lines General and Excess Liability policy, you don’t pay the full premium upfront. Instead, a premium finance company pays it for you, and you repay them in monthly installments.

Typically, they require a 25% deposit. That’s because surplus lines policies often include minimum earned premium provisions (usually 25–30%), meaning even if the policy is canceled early, the carrier keeps that minimum amount. The finance company needs to ensure that if the policy cancels, it can recover this non-refundable portion.

Some finance companies may accept a 20% deposit, but that depends on your credit history, business size, and your broker’s relationship with the lender. BGES Group helps clients explore the lowest deposit options available.

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Reduce Interest by Delaying Fund Release

One smart way to reduce your total financing cost is to delay the release of funds from the finance company to the insurance carrier.

Normally, once you sign the finance agreement and make the down payment, the finance company sends the full premium to the insurance company. But many carriers allow delayed funding—up to 20 to 25 days after the policy’s effective date.

Why does this matter? Because interest doesn’t start accruing until the funds are released. If your project isn’t starting immediately, delaying funding helps reduce the financed amount and lowers your total interest cost.

BGES Group frequently arranges these delayed releases to help contractors minimize interest and align payments with job cash flow.

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What Happens If You Miss a Payment?

Missing a payment triggers a Notice of Intent to Cancel (NOIC) from the finance company. This is a formal warning that your policy will be canceled if you don’t pay by the cancellation date listed—typically 10 days from the notice.

Most contractors don’t realize that once the NOIC is issued, a 5% penalty is often added to the installment amount owed. On a large premium, this can mean thousands in extra cost just for missing a deadline.

To avoid cancellation, you must pay the full amount due—plus the penalty—by the cancellation date on the NOIC. If you don’t, the finance company can legally instruct the insurance carrier to cancel your policy, and in New York construction, that could mean:

• Immediate job site shutdowns

• Contract violations

• Revoked COIs

• Legal exposure under Labor Law

BGES Group helps contractors respond quickly to NOICs, negotiate with finance companies when possible, and keep policies active.

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What If Your Payment Bounces? (NSF)

An even worse situation? You make a payment to avoid cancellation—but the check or ACH transfer bounces due to insufficient funds (NSF).

From the finance company’s point of view, this is a major red flag. You’ve already missed the deadline, and now your replacement payment is invalid.

In most cases, they’ll require you to pay with certified funds, like a wire transfer or bank check. Some finance companies will even require advance payment of the next installment before they reinstate the policy.

This creates a coverage gap, which can cost you jobs, delay payroll, and tarnish your reputation with project owners or GCs.

Avoid NSF events at all costs. And if you’re in trouble, contact BGES Group immediately—we can step in and help limit the damage.

How BGES Group Helps You Navigate Financing

At BGES Group, we specialize in helping New York contractors secure the right coverage with the right financing terms. We work with multiple surplus lines carriers and premium finance companies to:

• Lower your interest rates

• Explore 20% deposit options

• Delay fund release to reduce costs

• Respond quickly to NOICs and late payment issues

• Guide you through NSF or cancellation problems

We know how finance companies think. We understand surplus lines underwriting. And we work with contractors every day to protect their coverage and control their costs.

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Who We Work With

BGES Group works with contractors across New York, New Jersey, and Connecticut—including:

• Scaffolding and masonry contractors

• Demolition and excavation companies

• Painting and drywall subcontractors

• High-rise builders and general contractors

• Site work, concrete, and street/road contractors

*Everyone

We understand New York Labor Law and what insurance terms owners and GCs require. Whether you’re just starting out or managing multi-million-dollar projects, we can structure your insurance and financing to keep your business safe and scalable.

Contact BGES Group Today

If you’re looking to finance your General or Excess Liability insurance policy—or need help dealing with a finance company issue—we’re here to help.

BGES Group

📞 Gary Wallach – 914-806-5853

📧 bgesgroup@gmail.com

🌐 http://www.bgesgroup.com

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Final Word: Don’t Let Financing Derail Your Business

Financing your insurance premiums is a smart way to keep cash flowing—as long as you manage it right. One missed payment, one NSF, or a poorly timed fund release can cost you thousands and put your business at risk.

With BGES Group in your corner, you can protect your projects, reduce your costs, and avoid expensive missteps. Let us help you finance smarter—and keep your coverage rock solid.

Navigating the world of contractor insurance can be tricky, especially for builders new to the industry in the Tri-State area. This guide aims to simplify the process and provide a clear understanding of what you need to know about contractor insurance companies in New York, New Jersey, and Connecticut.

Why Contractor Insurance is Essential

As a builder, your projects are subject to various risks such as worksite injuries, property damage, and even potential lawsuits. Contractor insurance serves as a financial shield, offering protection against these unexpected events. Without adequate insurance, you might face hefty out-of-pocket expenses which can prove detrimental to your business. Moreover, having insurance not only safeguards your financial stability but also enhances your credibility with clients who often prefer to work with insured contractors.

In addition to financial protection, contractor insurance plays a key role in regulatory compliance. Many states require contractors to have certain types of insurance before they can legally operate. New York, New Jersey, and Connecticut each have their own regulations, making it crucial for builders to be aware of and comply with these specific requirements to avoid legal issues.

Types of Insurance Coverage Available

Understanding the spectrum of insurance coverage available is crucial for contractors. General liability insurance is fundamental, providing coverage against bodily injury and property damage claims. Workers’ compensation insurance is another essential type, offering medical benefits and wage replacement to workers injured on the job. This not only protects employees but also shields employers from lawsuits arising from workplace injuries.

Beyond the basics, there are additional insurance options like commercial auto insurance and builder’s risk insurance. Commercial auto insurance covers vehicles used in your business operations, protecting against damages and liabilities. Builder’s risk insurance offers protection against physical loss or damage to a construction project. Understanding these options allows contractors to tailor their insurance portfolio to meet specific project needs, ensuring comprehensive coverage.

Choosing the Right Insurance Company

When it comes to selecting an insurance provider, reputation is paramount. Reviews and ratings can offer insights into other clients’ experiences, providing a glimpse into the company’s reliability and customer service standards. It’s advisable to choose companies with a strong presence in the construction industry, as they often offer specialized policies tailored for contractors.

In addition to reputation, consider the range of policy options and the flexibility of coverage adjustments. An ideal provider should offer customizable policies that can evolve alongside your business needs. Price is an important factor, but it shouldn’t be the sole determinant. The cheapest option may not provide adequate coverage, so weigh cost against the value provided in terms of coverage comprehensiveness and customer service.

Specific Considerations for New York, New Jersey, and Connecticut Builders

New York, New Jersey, and Connecticut each have unique requirements for contractors when it comes to insurance. In New York for example, workers’ compensation premiums can vary significantly based on the classification of the work performed, necessitating accurate job classifications to avoid overpaying.

Meanwhile, in New Jersey, specific endorsements might be required for certain projects, particularly those involving public contracts. Similarly, Connecticut mandates that all electrical contracting businesses carry both general liability and property damage liability coverage. Understanding these state-specific nuances can aid builders in maintaining compliance and avoiding potential penalties or fines.

Securing Your Business with the Right Insurance

Choosing the right contractor insurance is a crucial step in safeguarding your construction business. By understanding the types of coverage available and selecting a reputable provider, you can ensure your business operates smoothly and securely across New York, New Jersey, and Connecticut. Learn more about how to get started with our comprehensive guidelines.

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

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