New York contractors face mounting challenges with escalating liability insurance renewal premiums. For 2025, the situation is no different. Rising costs are squeezing profit margins and threatening the survival of many businesses. It’s no surprise that contractors are searching for creative ways to stay afloat while maintaining the coverage they need to operate safely and legally.

Sometimes, you have to look at other ways to “skin a cat.” One underutilized yet highly effective method for offsetting these rising costs is through workers’ compensation premium recovery. This strategy has helped contractors recoup tens or even hundreds of thousands of dollars in refunds from past workers’ compensation policies. If you’ve been paying premiums for the last seven years, there’s a good chance errors or overcharges have been made—and this is where you can find relief.

Workers’ Compensation Premium Recovery: A Smart Solution

Workers’ compensation insurance is essential for protecting your business and your employees, but it’s also one of your largest expenses. Insurance companies, while vital, often make errors in calculating premiums, classifying employees, and applying experience modifiers. These errors can cost contractors significant amounts of money—money that you have the right to recover.

The good news is that workers’ compensation premium recovery can help you get this money back. Here’s how it works:

1. We review your past seven years of workers’ compensation policies.

2. Our team looks for errors, overcharges, or miscalculations made by your insurance company.

3. If we find recoverable money, we handle the entire refund process on your behalf.

4. If there’s no refund, you pay nothing—it’s a contingency fee basis, so there’s no risk to you.

5 Benefits of Workers’ Compensation Premium Recovery

1. Potential for Substantial Refunds

Insurance companies are not infallible. Mistakes can be made in payroll audits, employee classifications, and even how discounts or surcharges are applied. Recovering these funds could mean tens, or even hundreds, of thousands of dollars back in your pocket.

2. No Upfront Costs

The contingency fee model means you pay nothing unless we find recoverable funds. This makes the process risk-free, as you’re only paying a percentage of what’s actually recovered.

3. Minimal Effort on Your Part

We handle the heavy lifting. From reviewing past policies to negotiating with insurance carriers and ensuring your refunds are processed, you won’t have to take time away from running your business.

4. Improved Financial Health

Refunds from premium recovery can be reinvested into your business—whether it’s upgrading equipment, hiring more employees, or simply cushioning your bottom line.

5. Insight into Future Savings

In addition to recovering past premiums, the process can uncover systemic errors or inefficiencies in your workers’ compensation program, helping you save money in the future.

Why Errors Happen

It’s not uncommon for insurance companies to make mistakes, especially in a high-pressure, high-volume industry like construction insurance. Here are some common issues that lead to overcharges:

• Incorrect Employee Classification: Workers may be classified under higher-risk categories than necessary, leading to inflated premiums.

• Inaccurate Payroll Reporting: Errors in payroll audits can result in you being charged more than you owe.

• Improper Application of Discounts or Credits: Insurance carriers may fail to apply discounts you’re entitled to, such as safety or drug-free workplace credits.

• Experience Modifier Mistakes: Your experience modification rate (EMR) is a critical factor in calculating premiums. Errors in its calculation can significantly increase costs.

These are just a few examples of how errors can creep into your premiums—and why it’s worth having an expert review your policies.

Why Work with BGES Group?

At BGES Group, we specialize in New York construction insurance. We understand the unique challenges contractors face, including navigating labor laws, managing subcontractor liability, and controlling insurance costs.

Our team has extensive experience in workers’ compensation premium recovery, and we’ve helped many contractors recover significant refunds. Here’s why you should work with us:

• Expertise in Construction Insurance: We know the ins and outs of New York’s complex insurance landscape, making us uniquely qualified to spot errors and recover your funds.

• Personalized Service: Unlike large, impersonal agencies, we provide boutique-style service tailored to your needs.

• No-Risk Approach: With our contingency fee model, you have nothing to lose and everything to gain.

What’s Next?

If you’re feeling the pinch of rising liability premiums, now is the time to act. Workers’ compensation premium recovery is a proven way to offset costs, improve your cash flow, and strengthen your business.

To get started, contact Gary Wallach at BGES Group today. We’ll review your past workers’ compensation policies, handle the entire process, and help you get back the money you deserve.

Contact Information:

• Phone: 914-806-5853

• Email: bgesgroup@gmail.com

• Website: www.bgesgroup.com

Final Thoughts

Navigating the rising costs of liability insurance is no small feat, but solutions like workers’ compensation premium recovery can make a significant difference. By recovering money from past policies, you can ease the burden of increasing premiums and reinvest in your business.

Don’t wait for costs to climb higher—take action today. Let BGES Group help you uncover savings, recover refunds, and secure the financial stability you need to thrive in 2025 and beyond.

Navigating the complexities of contractor insurance in New York can be overwhelming. Understanding the essential requirements not only protects your business but also ensures legal compliance. This guide breaks down the top considerations every contractor in the Empire State should be aware of.

1. Understanding General Liability Coverage

General liability insurance is a must-have for contractors operating in New York. This coverage protects against third-party claims of bodily injury, property damage, and personal injury arising from business operations. Whether you’re renovating a historic building or constructing a skyscraper, unforeseen accidents can occur, leading to potential financial setbacks. In an urban environment like New York City, where construction happens at a rapid pace, having this coverage is more than just a safety measure—it’s a business necessity.

For contractors wishing to secure contracts, proof of general liability insurance is often a prerequisite. According to the New York City Department of Buildings, having a valid license and maintaining appropriate insurance demonstrate a commitment to adhering to industry standards and regulations. This requirement isn’t only about compliance; it assures clients of your capability to manage risks effectively, thereby enhancing your business’s reputation and trustworthiness.

2. The Importance of Workers’ Compensation

Workers’ compensation insurance is mandated by New York law for most contractors. It provides coverage for medical expenses and lost wages in case of work-related injuries or illnesses. The bustling construction scene in cities like New York presents unique challenges and hazards, making workers’ compensation an indispensable part of a contractor’s insurance portfolio. Not only does it comply with state regulations, but it also provides peace of mind to both employers and employees, ensuring that the workforce feels secure in undertaking projects.

The cost of workers’ compensation can be significant, yet the protection it offers is invaluable. According to Insureon, New York has some of the highest median costs for this insurance in the nation, underlining the necessity for contractors to carefully assess and select the most applicable coverage for their operations. Failure to procure the right workers’ compensation insurance could lead not only to legal consequences but potentially jeopardize ongoing business operations.

3. Considering Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, protects contractors from claims related to professional mistakes or negligence. In a competitive market like New York, clients expect high standards, and even minor errors can result in costly legal disputes. Professional liability insurance acts as financial armor against claims of inadequate work or failure to deliver as promised, covering legal defense costs and any settlements. This type of coverage is especially crucial for specialized contractors offering design or consulting services, where the risk of professional errors is higher.

4. Evaluating Commercial Auto Insurance Needs

For contractors using vehicles for their business, commercial auto insurance is crucial. This coverage protects against liabilities arising from the use of company vehicles. The dense traffic and complex logistics of New York City can heighten the risks associated with transportation. Commercial auto insurance safeguards businesses against accidents, covering medical expenses and vehicle repairs, ensuring that operations remain uninterrupted despite any incidents on the road.

In a city that relies heavily on timely deliveries and movement of goods, having reliable commercial auto insurance ensures that your fleet—whether it’s a single van or an entire convoy—is protected from unforeseen circumstances such as theft or vandalism. This coverage not only secures your assets but also maintains business credibility and client trust by guaranteeing contractual obligations are met on time.

5. Ensuring Adequate Equipment Insurance

Equipment insurance covers the repair or replacement cost of tools and machinery used in contracting work, providing peace of mind against unexpected damages. Construction equipment represents a significant investment, and damage or loss can severely impact project timelines and costs. Tools and equipment are often mobile, used across multiple sites, and exposed to theft or damage. Having robust equipment insurance ensures that you can quickly replace or repair critical assets, minimizing downtime and maintaining project momentum.

6. Umbrella Insurance for Added Protection

Umbrella insurance provides additional liability coverage beyond the limits of standard policies, offering an extra layer of security for contractors. In a city like New York, where lawsuits can be both frequent and expensive, umbrella insurance is a strategic safeguard. This coverage can include incidents that exceed general liability, auto, or workers’ compensation insurance limits, effectively preventing catastrophic financial losses.

Securing umbrella insurance is akin to fortifying your business against the worst-case scenarios. It is particularly beneficial in disputed situations where claims might involve substantial settlements or judgments. For high-profile projects or clients with rigorous expectations, showing that you have this additional insurance can also enhance your credibility and appeal as a contractor, underscoring your commitment to comprehensive risk management.

7. Understanding Builder’s Risk Insurance

Builder’s risk insurance covers property construction projects against damage caused by fire, weather, and theft, important for any contractor involved in building. This coverage is vital from the moment construction begins until the project is completed. For contractors in New York, where unpredictable weather can interfere with construction schedules and increase the risk of damage, this insurance ensures that unforeseen setbacks do not translate into financial disaster.

8. Why Contractor’s Pollution Liability is Critical

Contractor’s pollution liability insurance covers claims related to environmental damage caused during construction, a vital consideration for projects involving hazardous materials. Given New York’s stringent environmental regulations, this insurance protects against accidental discharges, clean-up costs, and related legal fees. For contractors handling materials like asbestos or working near sensitive sites, having comprehensive pollution liability insurance is paramount to avoid significant penalties and reputational damage.

9. Cyber Liability Insurance in the Digital Age

With the increasing reliance on technology, cyber liability insurance protects contractors from potential data breaches and cyber attacks. As contractors manage confidential project details, financial transactions, and client information, the risk of cyber threats grows. This insurance covers the costs associated with data breaches, including notification expenses, legal fees, and reputational repair. In a digitally connected world, where cyber threats are just as real as physical risks, secure your business with comprehensive cyber liability coverage.

10. The Necessity of Inland Marine Insurance

Inland marine insurance covers tools and equipment in transit, providing coverage for mobile resources essential to a contractor’s operations. The dynamic nature of construction work in New York means that tools and machinery are constantly moved between sites. This insurance protects against loss or damage during transportation, ensuring your business remains operational, irrespective of logistical challenges. By covering such valuable assets, inland marine insurance supports business continuity and enables contractors to respond swiftly to new project demands without worrying about equipment safety.

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 – 2024 – BGES Group
 

For business owners in the Tri-State area (New York, New Jersey, and Connecticut), annual workers’ compensation insurance audits can be a source of stress and frustration. These audits, conducted by insurance companies to verify payroll, job classifications, and other details, often lead to unexpected bills or disputes. Fortunately, there’s a solution: partnering with a Professional Employer Organization (PEO) can help you avoid or significantly reduce the headaches associated with these audits.

In this article, we’ll discuss five ways a PEO can help mitigate workers’ compensation insurance audits. We’ll also explain how BGES Group offers tailored programs for business owners, particularly contractors, to simplify their insurance needs and minimize the impact of audits.

The Challenges of Annual Workers’ Compensation Audits

Workers’ compensation insurance audits are mandatory for most businesses. They ensure that premiums accurately reflect actual payrolls and employee classifications. However, these audits can be challenging for several reasons:

1. Surprise Costs: If your payroll increased during the year or if employees were misclassified, you could be hit with a large retroactive bill.

2. Time-Consuming Process: Gathering payroll records, contracts, and other documentation can disrupt your operations.

3. Errors and Disputes: Mistakes in reporting or misunderstandings about employee roles can lead to prolonged disputes with your insurer.

4. Cash Flow Issues: A large audit bill can strain your cash flow, particularly for small businesses.

How Partnering with a PEO Can Help

A PEO is a company that provides comprehensive HR services, including payroll processing, benefits administration, and workers’ compensation insurance. Here are five reasons why having your workers’ compensation insurance through a PEO can help you mitigate or even eliminate annual audits:

1. Simplified Payroll Integration

PEOs handle your payroll and integrate it directly with workers’ compensation insurance. Since payroll is reported in real time, there’s no need for an end-of-year reconciliation or audit. This eliminates surprises and ensures that premiums are always accurate.

2. Elimination of Manual Reporting Errors

A PEO’s automated systems reduce the risk of errors in employee classification or payroll reporting. Proper classification and accurate data entry are crucial to avoiding costly audit discrepancies.

3. Pay-As-You-Go Workers’ Compensation

With a PEO, you typically pay workers’ compensation premiums on a “pay-as-you-go” basis. Premiums are calculated based on actual payroll figures each pay period, reducing the risk of overpayment or underpayment.

4. Expert Management of Employee Classifications

PEOs have experts who understand the complexities of workers’ compensation classifications. They ensure that your employees are classified correctly, minimizing disputes with insurance carriers during audits.

5. Reduction of Administrative Burdens

By partnering with a PEO, you transfer the responsibility of handling workers’ compensation audits to professionals. The PEO deals with the insurance carrier, allowing you to focus on running your business instead of dealing with audit paperwork and disputes.

How BGES Group Can Help Tri-State Business Owners

At BGES Group, we understand the challenges that business owners face with workers’ compensation insurance audits. That’s why we’ve developed tailored solutions to help businesses in the Tri-State area streamline their insurance needs and avoid the stress of audits.

1. Specialized Programs for Contractors

BGES Group offers several programs designed specifically for contractors, who often face unique challenges with workers’ compensation audits. Our programs ensure accurate employee classification, proper coverage, and competitive pricing to help contractors avoid audit-related surprises.

2. Nationwide Coverage (We Work With a Partner Who Can Service Nationwide)

While we specialize in serving businesses in New York, New Jersey, and Connecticut, we also offer programs for businesses nationwide. This flexibility allows us to provide expert assistance no matter where your operations are located.

3. Comprehensive Payroll and Insurance Packages

For businesses looking to simplify their operations, we offer packages that combine payroll services with workers’ compensation insurance. These programs often function like a PEO, with real-time payroll integration to eliminate the need for audits.

4. Expertise in Workers’ Compensation Audits

At BGES Group, we’re not just insurance brokers—we’re audit specialists. Our team has extensive experience helping businesses navigate the complexities of workers’ compensation audits. We’ll work with you to ensure compliance, minimize your audit exposure, and address any issues that arise.

5. Personalized Service

As a boutique insurance agency, BGES Group provides personalized service tailored to your unique needs. Our founder, Gary Wallach, has decades of experience in the industry and takes pride in helping business owners find the best coverage at competitive rates.

Why Choose BGES Group?

BGES Group is a trusted partner for Tri-State business owners seeking to simplify their workers’ compensation insurance and reduce audit-related stress. Here’s why businesses turn to us:

• Industry Expertise: We specialize in workers’ compensation insurance for all industries, including contractors, auto services, manufacturers, moving and storage agents, limousine services, and truckers.

• Tailored Solutions: We offer customized insurance programs that address your specific challenges.

• Transparent Pricing: Our programs are designed to eliminate surprises, with straightforward pricing and no hidden fees.

• Proven Results: Many of our clients have successfully avoided audit-related headaches thanks to our expert guidance and innovative solutions.

Get Started with BGES Group Today

If you’re a Tri-State business owner looking to escape the annual workers’ compensation insurance audit cycle, BGES Group can help. Our tailored programs, personalized service, and expertise in audit mitigation make us the ideal partner for your business.

Contact Information

To learn more about how we can help your business, contact Gary Wallach at BGES Group:

• Phone: 914-806-5853

• Email: bgesgroup@gmail.com

• Website: www.bgesgroup.com

Don’t let annual audits disrupt your operations or drain your resources. Partner with BGES Group today and take the first step toward stress-free workers’ compensation insurance.

When running your construction operation, one of the biggest challenges is preventing subcontractors’ and suppliers’ safety practices from interfering with your own safety program.

While you may consider a number of factors when vetting a new subcontractor or vendor, one area that is often overlooked is their workplace safety practices. This is a mistake and can cost you dearly if one of their workers causes an incident at your worksite.

Not only could you see one of your own employees injured, but you could also get a visit from an OSHA inspector.

The National Safety Council’s Campbell Institute recently conducted a study of organizations with excellent safety records to identify the best practices for contractor and vendor safety.

As part of the study, it identified five steps during a contractor or vendor relationship when it’s incumbent on a hiring company to evaluate the workplace safety habits of its business partners. 

Prequalification

The institute recommends looking at more than just a company’s experience modification rate. It says safety-minded firms assess contractors in multiple areas, such as their total recordable incident rate, fatality rate, days away from work for injured workers, restricted or transferred rate, and other OSHA recordables for the last three years.

Many firms also ask for environmental reports, written safety programs, permits, licenses and continuous improvement programs.

Pre-job task and risk assessment

Before a contractor begins work, institute members recommend having a method for evaluating the risk of the work to be performed. Doing this can help you understand the scope of the work and give you a chance to put into place a new written safety program if the risk is deemed high.

Most importantly, you should require contractors to adhere to the same safety standards as you do.

Training and orientation

You should require safety orientation and skills training for subs before they step onto your job site.

Also, if they are doing highly specific work, you should ensure they have any required permits or special training. Some of the jobs that fit into that category are confined-space entry, electrical work, hot work, energy control, forklifts and elevated work.

Job monitoring

Many safety-minded companies monitor work with daily checklists, pre-shift tailgate or safety meetings and weekly walk-through inspections.

Some of the companies surveyed for the study also require contract employees to submit a certain amount of safety observations and utilize mobile applications to report non-compliance or unsafe conditions.

Keep up-to-date incident logs, as this is crucial to monitoring subcontractor safety during a project.

Post-job evaluation

Conduct a post-job evaluation. During this phase look at safety, customer service and the quality of the finished work, and use those factors in determining the subcontractor’s eligibility for future contracts.

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 – 2024 – BGES Group

While wage and hour lawsuits filed against employers around the country declined between 2022 and 2023, there were still nearly 6,000 complaint filings under the federal Fair Labor Standards Act.

These types of complaints are the most common employee actions against employers and they typically cover failure to pay workers for hours worked, overtime infractions or requiring them to work during their lunch period.

With the onset of remote work and mobile devices, the chances of an employee working off the clock have increased substantially.

For example, if a manager texts a non-exempt employee while they are home and during non-working hours and asks them to send a client an e-mail, they are essentially requiring the employee to work unpaid.

If your require or allow your staff to work off the clock, the employee must be compensated for all of that time. This means that even if you did not ask the employee to work, you may still be required to compensate them, as long as:

• You know or have reason to believe that the employee is continuing to work, and
• You are benefiting from the work being done.  

This is true regardless of where the work is performed at in the office or at home, for example.  

Nine steps to protect your business

To protect your business from being sued for wage and hour infractions:

1. Calculate overtime correctly. In some cases, an employee is paid by salary or piecework, and may receive bonuses and commissions. All of these are factors that must be considered in correctly calculating overtime pay.
2. Keep detailed records of everything related to wages and hours.
3. Do not allow non-exempt employees to remotely access their work e-mail account.
4. If you give an employee access to their work e-mail at home, ensure that they are paid for their time in reviewing and responding to e-mails when not at work.
5. Educate managers about text messaging or e-mailing non-exempt employees when they are off the clock. Conversely, tell non-exempt staff avoid answering text messages or e-mails about work when they are off the clock.
6. Do not allow employees to take lunch at their assigned work area. If a worker answers a phone call or writes an e-mail during a lunch break (even if they weren’t not ordered to do so), they may be entitled to payment for time worked.
7. If an employee is asked to stay after their scheduled end time to finish up a project, they need to remain on the clock and paid for that time.
8. If a supervisor knows that a worker is staying late to finish a project, that time is compensable, even if the supervisor never asked them to stay late.
9. Have in place a written policy that bars unauthorized work or unauthorized overtime. Ensure that your employee handbooks and wage and hour policies and procedures are up-to-date and compliant.

Insurance

If an employee is successful in an FLSA claim, they may recover twice the amount of their unpaid wages, plus a mandatory award of attorney fees, which often far exceed the amount of any unpaid wages.

Many employers purchase employment practices liability insurance to help cover the costs of employee lawsuits, but policies typically exclude coverage for wage and hour claims.

However, there are some insurers that will provide a wage and hour defense-cost-only sublimit on the EPL policy.

There are some specialized insurance policies that are sold by offshore companies that will cover wage and hour infractions, the costs of litigation and awards. However, they are uncommon.

In light of the scarcity of coverage, it’s important that you have in place strong policies to deter employees from working unauthorized overtime.

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 – 2024 – BGES Group

In New York, contractors face unique challenges and risks in the construction industry. Understanding the importance of workers compensation insurance is crucial for their business operations and financial security. This guide answers key questions about why this insurance is essential.

What Is Workers Compensation Insurance?

Workers compensation insurance provides financial and medical benefits to employees injured on the job. It covers medical expenses, rehabilitation costs, and lost wages, easing the burden on both the employer and employee. This type of insurance is an invaluable safety net that supports workers during difficult times and allows them to focus on recovery without the stress of financial strain.

Moreover, workers compensation insurance is essential for employers as it mitigates the risk of lawsuits and claims resulting from workplace injuries. By providing a structured compensation system, it minimizes disputes and legal battles, fostering a smoother resolution process. Employers benefit from stability and predictability in terms of expenses, as insurance premiums replace potentially unpredictable large legal costs.

Legal Requirements for New York Contractors

In New York, contractors are legally required to carry workers compensation insurance. Non-compliance can result in severe penalties, fines, and potential business closures. The state enforces strict regulations to ensure that every employee working on construction sites is protected. This requirement underscores the importance of securing a reliable insurance partner to maintain compliance and protect your business interests.

The penalties for non-compliance are not just financial; they can also impact a contractor’s ability to operate. The state may halt project progress or revoke licenses, leading to project delays or cancellations. Contractors should thus treat securing workers compensation insurance as a priority, integrating it as a fundamental part of their business management strategy.

To navigate these requirements seamlessly, contractors can consult detailed guides like Understanding Workers Compensation: A Guide for New York Contractors offered by BGES Group. Such resources provide in-depth insights into legal obligations and help streamline the insurance acquisition process.

Protecting Employees and Business

This insurance ensures that employees receive adequate care and compensation in the event of an injury. It also protects the business from lawsuits and reputational damage. By fulfilling obligations to employees, contractors not only comply with the law but also demonstrate a commitment to workplace safety and employee well-being. Such actions can enhance a company’s reputation, making it an attractive employer and partner.

Beyond compliance, offering workers compensation insurance contributes to a positive work culture. It reassures employees that their health and livelihoods are valued, reducing turnover and boosting morale. Happy, secure workers often exhibit higher productivity levels and dedication to quality, directly benefiting business outcomes.

The Financial Implications of Non-Compliance

Failing to carry this insurance can lead to unexpected financial burdens, affecting both the business and its workforce. Understanding the cost of non-compliance is vital for every contractor. Uninsured medical expenses, lost wage payments, and potential lawsuit costs can collectively cripple a business, emphasizing the need for comprehensive coverage.

Moreover, it is crucial for contractors to understand the insurance landscape thoroughly. Various options, such as those explained at NYSIF’s Workers Compensation Overview, can provide different benefits and premium structures. Choosing the right policy helps avoid the financial pitfalls associated with inadequate coverage.

Consider the long-term savings and peace of mind that come from maintaining a diligent stance on workers compensation insurance. Rather than viewing it as an expense, contractors should consider it a strategic investment in their business’s sustainability and growth.

Summing Up the Importance of Workers Compensation Insurance

In conclusion, workers compensation insurance is not just a legal requirement in New York but a vital component of a contractor’s risk management strategy. It safeguards the business by protecting employees, maintaining financial stability, and ensuring compliance with state regulations. For more information on comprehensive insurance solutions, visit BGES Group.

For Tri-State business owners, it’s common to send workers out of state for jobs, whether for days, weeks, or even longer. However, many employers don’t realize that if their workers’ compensation insurance policy only covers their home state, they could face uncovered financial obligations when an out-of-state worker gets injured. This oversight can lead to costly claims, legal disputes, and potential penalties. Here’s why this is a significant issue and what you can do to protect your business.

The Problem with Single-State Workers’ Compensation Policies

If you have a workers’ compensation policy that covers only your home state, it may not provide coverage for employees working out of state. This gap in coverage could leave your business financially vulnerable if an employee suffers an injury in another state.

Workers’ compensation laws and benefits vary significantly from state to state. For example:

1. Medical Reimbursement Schedules

• States like New York and New Jersey have different medical fee schedules that determine how much healthcare providers can charge for treating injured workers.

• If an employee is injured in a state with higher reimbursement rates, and your policy doesn’t include that state, your company might have to pay the difference out of pocket.

2. Loss of Wage Benefits

• Wage replacement benefits for injured workers differ by state. For instance, New York calculates wage replacement based on two-thirds of the average weekly wage, capped at $1,145.43 per week (as of 2025).

• New Jersey, on the other hand, has different wage caps and calculations, which could result in higher costs for your business if coverage isn’t in place.

Without proper coverage, you may also be subject to lawsuits or penalties for failing to comply with the workers’ compensation requirements of the state where the injury occurred.

How Out-of-State Work Creates Coverage Gaps

Many businesses mistakenly believe their workers’ compensation policy automatically extends to other states. While some policies include “Other States Coverage,” this coverage typically applies only to incidental, short-term work in other states.

If you regularly send employees out of state for extended periods, the insurer may require specific endorsements to cover those states. Failing to update your policy to include these endorsements can lead to:

• Uncovered medical expenses for the injured employee.

• Fines and penalties for non-compliance with the workers’ compensation laws in the state where the injury occurred.

• Lawsuits from injured employees seeking compensation for medical bills and lost wages.

How to Address the Problem

To ensure your business is fully protected, follow these steps:

1. Review Your Current Workers’ Compensation Policy

• Check if your policy includes “Other States Coverage” or if it is restricted to your home state.

• Verify whether the states your employees work in are listed in your policy.

2. Add Specific Endorsements

• Work with an insurance expert to add endorsements for the states where your employees frequently work. This ensures compliance with those states’ workers’ compensation laws.

3. Understand the Laws of Each State

• Familiarize yourself with the workers’ compensation requirements of states like New York, New Jersey, and Connecticut.

• Pay attention to differences in medical fee schedules, wage replacement benefits, and other regulatory nuances.

4. Ensure Multi-State Coverage

• If your business frequently operates in multiple states, consider a multi-state workers’ compensation policy. This type of policy is specifically designed to provide seamless coverage for employees working across state lines.

5. Work with a Workers’ Compensation Specialist

• Partner with a specialist who understands the complexities of workers’ compensation insurance. They can help you assess your risks, tailor your policy, and ensure you remain compliant with all applicable laws.

Why BGES Group is the Right Choice for Tri-State Businesses

At BGES Group, we understand that managing workers’ compensation insurance for multi-state operations can be overwhelming. That’s why we specialize in helping New York, New Jersey, and Connecticut businesses secure comprehensive coverage that protects them from unnecessary risks.

When you work with BGES Group, you’ll benefit from:

• Expert Guidance: Our team has decades of experience in workers’ compensation insurance, ensuring your policy is tailored to your business needs.

• Compliance Assurance: We stay up-to-date on state-specific workers’ compensation laws and ensure your policy complies with all regulations.

• Cost-Effective Solutions: We’ll help you find competitive rates without compromising on coverage quality.

• Personalized Service: As a boutique agency, we offer hands-on support to address your unique concerns and challenges.

Don’t Risk Your Business’s Future

If you send employees out of state without proper workers’ compensation coverage, you’re leaving your business exposed to significant financial and legal risks. Taking the steps outlined above will protect your employees, keep you compliant with state laws, and shield your company from unexpected costs.

At BGES Group, we’re here to help you navigate the complexities of workers’ compensation insurance and find the best solutions for your business. Whether you’re a contractor, manufacturer, or operate in any other industry, our team has the expertise to ensure your business is fully protected.

Contact BGES Group Today

Don’t leave your business exposed to uncovered claims. Contact Gary Wallach at BGES Group for a free consultation.

• Phone: 914-806-5853

• Email: bgesgroup@gmail.com

• Website: www.bgesgroup.com

We’re the workers’ compensation insurance specialists you can trust to protect your business, employees, and bottom line.

Workers’ compensation insurance is a crucial requirement for New York contractors. It provides coverage for employees in case of work-related injuries or illnesses and protects employers from costly liability claims. However, one of the key factors influencing your workers’ compensation premiums is the accurate classification of payroll according to trade-specific codes. The New York Compensation Insurance Rating Board (NYCIRB) establishes these rules, which determine the rates contractors pay for workers’ compensation insurance.

This article explains how payroll classifications work, strategies for splitting payroll among various classification codes, and tips for small contractors to save on premiums while remaining compliant. We’ll also highlight how BGES Group, experts in workers’ compensation insurance for New York contractors, can help you navigate this complex process.

What Are Workers’ Compensation Payroll Classifications?

In New York, the NYCIRB assigns classification codes to specific types of work performed by employees. Each classification code has a corresponding rate based on the risk level of the job. For example:

• Carpentry (5403) typically has higher rates due to the inherent risks of working with tools and at heights.

• Painting (5474) may have slightly lower rates depending on the scope of work.

• Tile Installation (5348) might be even less expensive due to the relatively lower risk of injury.

Contractors must categorize payroll correctly to ensure they are paying the appropriate rate for each type of work performed. Misclassification can result in audits, fines, or higher premiums, especially if all payroll is lumped into the highest-rated classification.

How to Split Payroll Among Classification Codes

For contractors performing various trades, splitting payroll into appropriate classification codes is essential to avoid overpaying on premiums. The NYCIRB allows payroll splitting under specific conditions:

1. Accurate Records: Contractors must maintain detailed records showing the time employees spend on each type of work.

2. Job-Specific Allocation: Employees’ payroll can be divided among different classification codes if the records clearly indicate the time spent on each trade.

3. Audit Preparation: Payroll records must be clear and verifiable during audits to ensure proper classification.

Examples of Payroll Splitting for Multi-Trade Contractors

Here are three examples of how a contractor performing multiple trades can split payroll to optimize workers’ compensation premiums:

Example 1: General Contractor Doing Carpentry, Painting, and Tile Work

A contractor employs three workers who perform carpentry, painting, and tile installation on a renovation project.

• Worker A (Carpentry): Spends 50% of their time on carpentry tasks (5403) and 50% on painting tasks (5474).

• Worker B (Painting): Spends 70% of their time painting (5474) and 30% on tile work (5348).

• Worker C (Tile Work): Works exclusively on tile installation (5348).

To split payroll effectively:

• Track hours daily for each task using timesheets or job-costing software.

• Assign payroll based on the time spent in each trade.

By doing this, payroll is allocated to the appropriate classification codes, ensuring that not all wages are categorized under the higher-risk, higher-cost carpentry code.

Example 2: Small Contractor Managing Different Projects

A small contractor handles projects with varying scopes, such as remodeling (carpentry-heavy), interior painting, and bathroom tiling. They employ one worker for all trades.

• Week 1: Worker spends 40 hours on carpentry (5403).

• Week 2: Worker spends 20 hours on painting (5474) and 20 hours on tile work (5348).

To allocate payroll:

• Record hours worked per task per week.

• Apply the appropriate classification codes to each type of work.

This strategy prevents all payroll from being classified under carpentry, which has the highest rate.

Example 3: Subcontractor Hired for Specialized Tasks

A subcontractor provides services for tile installation and painting.

• The subcontractor’s payroll should be split based on the scope of work in their contract.

• Accurate documentation, such as invoices detailing work performed, can justify payroll allocation.

How Small Contractors Can Split Payroll in Their Books

Splitting payroll effectively requires a disciplined approach to recordkeeping. Here are some practical tips:

1. Use Job-Costing Software: Platforms like QuickBooks or other construction-specific software allow you to allocate payroll based on tasks performed.

2. Maintain Daily Timesheets: Ensure workers log their hours daily, detailing the type of work they performed.

3. Communicate with Your Insurance Carrier: Work with your insurance provider to understand classification rules and ensure compliance.

4. Review Classification Codes Annually: Payroll classifications may need adjustments based on changes in the scope of work.

By following these steps, small contractors can avoid overpaying for workers’ compensation insurance and stay audit-ready.

Why Choose BGES Group for Workers’ Compensation Insurance?

Navigating the complexities of workers’ compensation insurance payroll classifications can be overwhelming. That’s where BGES Group comes in. We are specialists in workers’ compensation insurance for New York contractors, providing personalized solutions to ensure you’re paying the right amount without compromising coverage.

Here’s why contractors trust us:

• Expert Guidance: We help you understand and apply the correct classification codes for your business.

• Audit Preparation: Our team ensures your payroll records are accurate and compliant with NYCIRB rules.

• Tailored Policies: We customize workers’ compensation insurance plans to fit your business needs.

If you need help obtaining new coverage or have questions about workers’ compensation insurance, contact BGES Group today.

Contact Information

BGES Group is your go-to partner for workers’ compensation insurance solutions. Call or email us today to learn how we can help your business.

• Gary Wallach

• Phone: 914-806-5853

• Email: bgesgroup@gmail.com

Optimize Your Workers’ Compensation Insurance with BGES Group

Don’t let misclassified payroll inflate your workers’ compensation premiums. With proper recordkeeping and expert advice from BGES Group, you can reduce costs while maintaining compliance. Whether you’re a general contractor, subcontractor, or small business owner, our team is here to provide the support and expertise you need.

For affordable and customized workers’ compensation insurance for New York contractors, contact BGES Group today.

By focusing on accurate payroll classification, leveraging NYCIRB rules, and partnering with experienced professionals, New York contractors can optimize their workers’ compensation insurance and protect their bottom line.

Navigating the world of insurance as a general contractor can feel daunting, but understanding the essential types of coverage you need can make a world of difference. Whether you’re new to the field or looking to revamp your policies, we’ve got you covered (literally). In this guide, we’ll break down the key insurance types to keep your business running smoothly and securely.

1. Shielding Against Errors with Professional Liability Insurance

In any construction project, despite best efforts and intentions, errors and omissions can occur. Professional Liability Insurance, often overlooked, becomes crucial here. While General Liability protects against physical mishaps, Professional Liability covers “intellectual” errors. Imagine a client claiming that your design led to a technical failure, requiring expensive revamps. This insurance ensures you don’t have to bear these hefty costs alone. Claims of negligence can tarnish your reputation; having this policy protects your finances and reassures clients of your professionalism. Learn more about which insurance contractors should consider to guard their operations.

2. Safeguarding Sites with General Liability Insurance

Picture this: you’re working on a site, and an unexpected visitor trips over a tool, claiming injury. Without General Liability Insurance, you could be directly responsible for their medical expenses. This insurance is your safety net against incidents like these, offering significant protection against “third-party” claims. Whether it’s a passerby or client, this policy covers legal fees and settlements arising from property damage or injuries, making it indispensable for your contracting business.

Beyond the immediate work environment, this insurance also covers “advertising injuries,” which include issues like defamation or copyright infringement. For a contractor branching into marketing, having this insurance means you’re safeguarded against disputes that could otherwise drain your resources. Choosing a comprehensive policy provides peace of mind, ensuring you’re ready to tackle unexpected challenges on and off the job site.

3. Protecting Your Workforce with Workers’ Compensation Insurance

Construction sites are rife with potential accidents. From minor slips to major falls, ensuring your workers’ safety is paramount. Workers’ Compensation Insurance steps in when injuries happen, covering medical bills and partial wage replacement during recovery. This policy not only fortifies employees’ trust in your commitment to their safety but also shields your business from lawsuits arising from work-related injuries or illnesses. Explore the various insurances that can mitigate risks for contractors.

4. Cushioning Equipment Loss with Inland Marine Insurance

Your equipment travels just as much as you do between job sites, making it prone to risks like theft or accidental damage. Inland Marine Insurance covers these assets, ensuring that costly equipment, from heavy machinery to hand tools, remains financially protected. This insurance is crucial, especially for contractors who frequently transport high-value items essential for daily operations. Misplacing or losing equipment not only stalls work but can also impact financial stability. Thus, investing in this insurance is a strategic move to preserve your business continuity.

5. Securing Job Sites with Builders Risk Insurance

Every contractor knows that construction sites are vulnerable to numerous threats—from unpredictable weather to theft. Builders Risk Insurance acts as a shield, covering the value of the structures, materials, and even the scaffoldings. If a storm ruins your months-long effort or vandalism rears its head, having this insurance means you’re protected from absorbing the full financial brunt. It’s designed to handle the specific nature of construction, allowing you to rest easy knowing you’re ready for whatever comes your way.

This policy not only alleviates financial burdens but also meets many contract requirements. Clients often necessitate builders to carry specific insurance coverages to ensure project continuity and security. By securing Builders Risk Insurance, you not only fortify your projects but also enhance your business’s credibility and reliability in the competitive construction sector.

6. Mitigating Vehicle Risks with Commercial Auto Insurance

Commercial Auto Insurance is central to operations relying on transportation. Accidents involving company vehicles can result in steep expenses, impacting not just the vehicle, but goods or employees onboard. This insurance covers repair costs, medical bills, and even liabilities for damages to other parties involved in the accident. Whether it’s a delivery van heading to a client or a truck transporting equipment, having Commercial Auto Insurance ensures disruptions are minimized after unforeseen events.

7. Balancing Coverage with Umbrella Insurance

Business insurance is typically layered to cover various facets of operation, but maximum limits in policies like General Liability or Auto Insurance can leave gaps for expensive claims. Umbrella Insurance bridges this gap by providing “excess liability” protection. When a claim exceeds the standard policy limits, this coverage kicks in, safeguarding your business’s financial health against dramatic payouts. Like safety gear in construction, it’s mostly unused, but invaluable when needed.

This insurance widens your protection scope affordably, covering incidents otherwise excluded by underlying policies. Think of it as a financial buffer for catastrophic events—whether it’s a massive accident claim or widespread property damage. By investing in Umbrella Insurance, you save your business from absorbing overwhelming financial shocks, ensuring a stable platform for success.

Industries BGES Group Serves

BGES Group specializes in workers’ compensation insurance for a wide range of industries, including:

• Construction (including higher-risk trades like roofing, demolition, and asbestos abatement)

• Manufacturing

• Auto Service

• Limousine Services

• Moving and Storage

• Trucking

If your business operates in these or related industries, BGES Group has the expertise and programs tailored to meet your specific needs.

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10 Common Workers’ Compensation Issues BGES Group Can Solve

1. Being Non-Renewed

Have you recently received a non-renewal notice? Don’t panic—our team can help you secure new workers’ compensation coverage quickly and effectively.

2. Frustration with Annual Audits

Tired of spending hours and hundreds of dollars on accountants’ fees for workers’ compensation audits? We’ll guide you through simplifying this process.

3. Poor Loss Experience

Struggling to find a new policy due to claims history? BGES Group specializes in placing coverage for businesses with challenging loss experience.

4. High Experience Modification Factor

Is a high experience mod driving up your premium? Let us find carriers that offer more competitive rates based on your circumstances.

5. Out-of-State Coverage Challenges

Operating in multiple states but your current carrier won’t provide out-of-state coverage? We’ll help you secure a nationwide workers’ comp policy that fits your needs.

6. Incorrect Payroll Classifications

Are payrolls misclassified, leading to higher premiums? We’ll ensure proper classification to avoid overcharges.

7. Delays in Receiving Certificates of Insurance

Need certificates issued quickly for compliance? We’ll make sure your certificates are issued accurately and on time.

8. High Broker Fees

Is your broker charging thousands in additional fees? BGES Group offers transparent pricing and no unnecessary charges.

9. Difficulty Finding Coverage Due to High-Risk Operations

Are you in a “hard-to-place” industry like asbestos abatement, roofing, or demolition? We have access to specialized programs that can cover these risks.

10. Poorly Handled Claims

Frustrated with how your claims are being managed? BGES Group ensures that claims are handled efficiently and fairly, minimizing disruptions to your business.

Why Choose BGES Group?

With decades of experience in workers’ compensation insurance, BGES Group is one of the Tri-State’s leading specialists. We work tirelessly to find you the best coverage at competitive rates, all while delivering boutique-level service.

Contact BGES Group Today

If you’re ready to resolve your workers’ comp issues, contact Gary Wallach today!

📞 Phone: 914-806-5853

📧 Email: bgesgroup@gmail.com

🌐 Website: www.bgesgroup.com

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Take action now to resolve your workers’ compensation challenges with BGES Group—your trusted partner in workers’ compensation insurance solutions.