When it comes to liability insurance for contractors in New York, one of the most misunderstood—and potentially devastating—coverage issues revolves around Labor Law. For general contractors and subcontractors, being improperly covered (or not covered at all) for New York Labor Laws 240, 241, and 200 can mean financial ruin in the event of a serious accident.
The sad truth? Many contractors think they’re covered—only to find out too late that critical exclusions leave them exposed to multi-million-dollar lawsuits. Let’s dig into what Labor Law coverage is, what types of claims would be covered with the right policy in place, and the kinds of disasters that could be denied if your policy isn’t structured correctly.
⸻
What Is Labor Law Coverage?
In New York, Labor Law 240 (the “Scaffold Law”) and Labor Law 241 impose absolute liability on property owners and contractors when a worker falls from a height or is struck by a falling object—even if the contractor wasn’t negligent.
Labor Law 200 covers general workplace safety and hazards. These laws are designed to protect workers—but they place an enormous liability burden on contractors.
Without the proper Labor Law endorsements on your liability policy, your insurance company can (and often will) deny coverage for these claims.
⸻
5 Examples of Claims That Would Be Covered with Labor Law Protection
1. Rooftop Fall – $2.8 Million Settlement
A subcontractor’s employee was working on a 3-story townhouse roof in Brooklyn. No fall protection was provided. He fell 20 feet and suffered multiple fractures and a traumatic brain injury.
Covered? Yes, with proper Labor Law 240 coverage.
2. Falling Object Injury – $1.6 Million Judgment
A worker on the ground was struck by a brick that fell from a scaffold during renovation in Manhattan. The worker required spinal surgery.
Covered? Yes, because the incident falls under Labor Law 240 protections.
3. Ladder Collapse – $3.2 Million Lawsuit
An electrician working on a 12-foot ladder inside a retail store fell when the ladder slipped on a recently waxed floor. He became partially disabled.
Covered? Yes, with Labor Law 240 and 241 coverage.
4. Shoring Collapse – $4.5 Million Jury Award
A foundation worker in Queens was injured when an improperly braced trench collapsed.
Covered? Yes, under Labor Law 241(6), which governs excavation and demolition worksite safety.
5. Platform Slip – $950,000 Claim
A painter slipped on a wet temporary platform due to missing guardrails and no non-slip surface.
Covered? Yes, because the failure to provide a safe working platform is directly related to Labor Law 240.
⸻
5 Examples of Claims That Would Not Be Covered Without Labor Law Protection
1. Framer Falls Through Open Stairwell – $2.1 Million Lawsuit
A framer at a residential jobsite fell through an unguarded stairwell opening. The GC’s policy excluded Labor Law.
Denied – The contractor had a “Labor Law Exclusion” endorsement.
2. Employee Injury – $1.3 Million Demand
A laborer employed by a subcontractor was injured on-site and filed a lawsuit against the general contractor.
Denied – The GC had a “Contractual Liability – Employee Injury” exclusion and no Labor Law endorsement.
3. Temporary Laborer Slip – $800,000 Claim
A leased worker fell off a scaffold because no guardrails were installed.
Denied – Policy excluded coverage for temporary or leased employees.
4. Falling Lumber Incident – $2.6 Million Judgment
A worker was struck by falling lumber due to poor hoisting practices.
Denied – The policy included an “Action Over Exclusion,” which blocked coverage when an injured employee sues a third party who then sues the policyholder.
5. Improper Safety Equipment – $3.9 Million Lawsuit
A concrete worker was injured when a makeshift lift failed.
Denied – No Labor Law 240/241 coverage; claim denied despite injury severity.
⸻
The Hidden Danger in Your Policy: Exclusions That Leave You Exposed
If you’re a New York contractor, here’s what you need to watch out for:
• Labor Law Exclusion
• Employee Injury Exclusion
• Action Over Exclusion
• Leased/Temporary Worker Exclusion
• Independent Contractor Exclusion
Even if your certificate of insurance looks clean, you must review your actual policy forms and endorsements. Too many brokers ignore these exclusions—leaving you open to uncovered million-dollar claims.
⸻
How BGES Group Can Help
At BGES Group, we specialize in construction insurance for New York contractors. We’ve seen far too many good contractors get blindsided by denied claims—simply because they weren’t properly covered.
Our team doesn’t just sell policies—we protect your business. We’ll:
• Review your existing policy for hidden exclusions
• Identify your Labor Law exposures
• Match you with a carrier that provides real coverage
• Often reduce your premiums while improving protection
• Educate you so you know exactly what’s covered and what’s not
Whether you’re a general contractor, subcontractor, scaffolding company, or tradesman, we’ll help you get coverage that stands up when it matters most.
⸻
Don’t Gamble with Your Livelihood
A single denied claim can bankrupt your company, destroy your reputation, and cost you everything you’ve built. Why take that risk?
Let BGES Group help you secure the protection you deserve.
⸻
Contact BGES Group Today
BGES Group – Construction Insurance Specialists
📍 Serving New York, New Jersey, and Connecticut
📞 Call Gary Wallach: 914-806-5853
📧 Email: bgesgroup@gmail.com
🌐 Visit: http://www.bgesgroup.com
⸻
Remember: Just because you have liability insurance doesn’t mean you’re covered for New York Labor Law claims. Make sure your policy will stand up in court—before you have a claim.
Let BGES Group show you how.