Running a construction company in New York is both rewarding and challenging. With strict labor laws, complex contractual obligations, and ever-changing insurance requirements, one wrong move can cost contractors millions of dollars. The right insurance program is not just about compliance—it’s about protecting your company, your workers, and your future.
At BGES Group, we specialize in helping New York contractors navigate this maze. Below are the 10 most important insurance questions contractors should be asking—and the answers you need to stay protected.
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1. Do I Have Adequate General Liability Limits?
In New York, construction claims—especially Labor Law 240 and 241 cases—can result in multi-million-dollar judgments. Many contractors carry only $1 million per occurrence and $2 million aggregate limits, which is often not enough. You should discuss umbrella or excess liability coverage with your broker to ensure your business has adequate protection.
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2. Am I Covered for Labor Law (Scaffold Law) Claims?
New York is unique because of its strict liability labor laws. If a worker is injured in a gravity-related fall, you could be held fully liable—even if you were not directly at fault. Not all liability policies properly address these risks. Contractors should confirm their policy specifically covers Labor Law claims, without hidden exclusions that can leave them exposed.
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3. Will My Policy Respond If My Subcontractors Aren’t Properly Insured?
This is one of the most important questions a general contractor can ask. If a subcontractor causes an accident and doesn’t carry proper coverage, your insurance company may deny the claim.
To protect yourself, every subcontractor should be required to provide:
• General liability with at least $2 million coverage
• Workers’ compensation insurance
• Additional insured status for you
• Primary & non-contributory wording
• Waiver of subrogation
Failing to enforce these requirements can leave you exposed, with your own policy refusing to respond. Always verify subcontractors’ coverage before work begins.
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4. Does My Policy Cover Completed Operations?
Completed operations coverage protects you after a job is finished. Claims can arise years later, and without this coverage you could face lawsuits without insurance backing. Contractors should check if their policy excludes completed operations or limits coverage through restrictive endorsements.
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5. Am I Compliant with Contractual Insurance Requirements?
Owners, developers, and municipalities often require contractors to carry specific coverage and endorsements. Failure to comply could void your contract or leave you uncovered if a claim arises. Contractors should review every contract with their broker to ensure insurance compliance before work begins.
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6. Do I Have Adequate Workers’ Compensation Coverage?
Workers’ compensation is mandatory in New York, but not all policies are equal. Rates vary by class code, and if you’re misclassified, you could pay significantly more—or face penalties for underreporting payroll. Additionally, you should confirm coverage extends to all states where your crews might work, especially if you border Connecticut or New Jersey.
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7. Do I Need Professional Liability or Design-Build Coverage?
If you provide any design, engineering, or consulting services—even indirectly—you could face professional liability exposures. Traditional general liability policies do not cover errors in design or professional advice. Contractors involved in design-build projects should strongly consider professional liability coverage.
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8. What Happens If I Lease Equipment or Use Rental Tools?
Many contractors assume their insurance covers rented equipment, but that’s not always the case. Specialized inland marine or equipment floater coverage may be required. Without it, damage to rented machinery could become an uninsured expense. Always verify what your policy covers before renting or leasing equipment.
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9. Am I Protected If a Claim Involves the City of New York?
The City of New York is a unique additional insured requirement. Some liability policies specifically exclude municipalities or public entities. This means that if your contract requires you to name the City as an additional insured but your policy doesn’t allow it, you could be in breach of contract and without coverage. Contractors working on city projects must ensure their policies are written correctly.
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10. Do I Have an Insurance Advisor Who Specializes in New York Construction?
Construction insurance in New York is unlike anywhere else in the country. A broker who doesn’t specialize in this area can overlook critical coverage gaps—leaving you exposed to catastrophic losses. Working with a construction-focused specialist ensures you have policies tailored to your unique risks, contracts reviewed before signing, and guidance when dealing with subcontractor compliance.
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Why These Questions Matter
Insurance is not just about having a policy—it’s about having the right policy. Too many contractors buy coverage based on price alone, only to find out later that their policy has exclusions, insufficient limits, or gaps that leave them exposed. Asking these questions before you bind coverage ensures that your business is protected against the real risks you face every day on the job site.
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BGES Group: Your New York Construction Insurance Specialists
At BGES Group, we don’t just sell insurance—we protect contractors from the unique risks of working in New York. With decades of experience in construction insurance, we know how to structure policies that comply with contracts, cover Labor Law exposures, and give you peace of mind that your business is protected.
We serve contractors across:
• New York, New Jersey, and Connecticut
Whether you’re a small subcontractor or a large general contractor, we can help you secure the right coverage at the best possible terms. Our expertise includes:
• General liability
• Workers’ compensation
• Umbrella & excess liability
• Inland marine (equipment coverage)
• Professional liability
• Contract review & compliance
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Contact BGES Group Today
If you’re a New York contractor, don’t leave your insurance program to chance. The right protection can mean the difference between staying in business and financial disaster.
Contact:
📞 Gary Wallach, BGES Group
📱 (914) 806-5853
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✅ Catchy Closing Line:
“Don’t wait until after a claim to discover what your policy doesn’t cover. Call BGES Group today and let us protect your business the right way.”