If you’re a contractor in New York, you already know this state is one of the toughest in the country when it comes to construction liability. New York’s Labor Law 240 and 241, also known as the “Scaffold Laws,” place absolute liability on contractors and property owners when a worker is injured in a gravity-related accident—whether from a fall or something falling on them. Unlike most states, in New York, comparative negligence doesn’t apply. That means if a worker falls from a scaffold, ladder, or roof—even if they weren’t using safety gear—you as the general contractor (GC) could be held 100% responsible.
This is why having Labor Law coverage built into your commercial general liability (CGL) policy is not just a good idea—it’s absolutely essential for your survival in the New York construction marketplace.
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Why Subcontractor Agreements Aren’t Enough
Many general contractors believe they are protected because their subcontractors sign insurance and hold harmless agreements. These agreements typically state that the subcontractor will indemnify and hold the GC harmless for any claims arising from their work. Subcontractors are also required to carry their own liability and workers’ compensation coverage.
But here’s the catch:
• If the subcontractor doesn’t have adequate coverage (or their insurance denies the claim due to exclusions), the general contractor is left exposed.
• Even if the subcontractor has insurance, their policy may not include full Labor Law coverage, which means the GC’s insurance ends up footing the bill.
• Labor Law cases often trigger “action over” claims—where the injured worker collects workers’ compensation benefits from the subcontractor’s policy, but then sues the GC (and sometimes the property owner).
Without proper Labor Law coverage in your liability policy, your business—and potentially your personal assets—are at risk.
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10 Realistic Labor Law Claim Scenarios (and Their Price Tags)
To show you how costly these claims can be, here are 10 made-up but realistic Labor Law claims involving New York contractors, complete with hypothetical awards and settlements:
1. Scaffold Fall – Bronx
A masonry worker employed by a subcontractor fell 20 feet from faulty scaffolding. Even though the worker wasn’t tied off, the GC was held liable under Labor Law 240.
Settlement: $3.8 million
2. Ladder Collapse – Manhattan
An electrician hired by a subcontractor used a ladder that slipped on wet flooring. The GC was sued under Labor Law 241(6).
Verdict: $2.1 million
3. Falling Object – Queens
A carpenter was struck by a falling steel beam while working below. He sued the GC, citing failure to provide adequate overhead protection.
Settlement: $4.5 million
4. Roof Fall – Brooklyn
A roofing subcontractor’s employee slipped on ice and fell off a two-story building. Despite icy conditions being obvious, the GC was found liable.
Settlement: $5.2 million
5. Action Over Claim – Staten Island
A worker employed by a subcontractor collected workers’ comp from his employer but then sued the GC, claiming lack of fall protection.
Verdict: $3.0 million
6. Elevator Shaft Fall – Midtown
A laborer fell into an unguarded elevator shaft. The subcontractor failed to install proper barricades, but the GC was deemed responsible.
Settlement: $6.7 million
7. Flying Debris – Harlem
A brick fell from the sixth floor and struck a pedestrian passing by. The GC was sued under Labor Law 240(1) for lack of netting.
Settlement: $1.9 million
8. Unsafe Scaffolding – Lower Manhattan
A painter’s scaffold tipped over due to improper assembly by a subcontractor. The GC was held liable.
Settlement: $4.1 million
9. Material Hoist Accident – Long Island City
A hoist carrying sheetrock malfunctioned, causing injuries to multiple workers. The GC and property owner were both sued.
Verdict: $7.5 million
10. Slip and Fall From Ladder – Yonkers
A subcontractor’s worker fell while descending a ladder that wasn’t secured. The worker sued the GC, citing inadequate safety training.
Settlement: $2.4 million
As you can see, these cases often result in multi-million-dollar payouts—and without the right insurance protection, a single claim can wipe out a contractor’s entire business.
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The BGES Group Advantage
At BGES Group, we specialize in New York construction insurance, with a strong focus on Labor Law coverage and workers’ compensation insurance. We’ve been helping general contractors, subcontractors, and construction businesses navigate the unique risks of New York’s labor laws for decades.
Here’s what sets us apart:
• Labor Law Expertise: We know the ins and outs of New York’s Scaffold Laws and how to structure your coverage to protect you from devastating claims.
• Tailored Insurance Programs: We design policies that fit your exact trade—whether you’re a GC, specialty subcontractor, or construction manager.
• Subcontractor Compliance Guidance: We help you enforce subcontractor insurance requirements (AI, primary & non-contributory wording, waiver of subrogation) to limit your risk.
• Regional Reach: We serve New York, New Jersey, and Connecticut, and through our associates, we can provide coverage nationwide.
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Don’t Wait Until It’s Too Late
Too many contractors learn the hard way—after a serious Labor Law claim—that their insurance doesn’t cover them the way they thought. By then, it’s too late. Protecting yourself upfront with the right Labor Law coverage is the only way to keep your business safe from New York’s unique and unforgiving liability environment.
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Contact BGES Group Today
BGES Group – Construction Insurance Specialists
📍 Serving New York, New Jersey, Connecticut, and beyond
📞 Contact: Gary Wallach – 914-806-5853
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✅ Bottom Line: If you’re a contractor working in New York, you simply cannot afford to operate without Labor Law coverage in your liability policy. The risks are too high, the claims are too costly, and the law is too unforgiving. BGES Group is here to make sure you’re covered the right way.