Policies What You Don’t Know Can Cost You Millions

New York contractors operate in one of the most aggressive legal and regulatory environments in the country. Labor Law claims, multi-employer job sites, vertical construction, and an active plaintiffs’ bar make liability insurance not just a formality, but a critical survival tool. Yet many contractors unknowingly carry policies riddled with exclusions and endorsements that can quietly erase coverage when it is needed most.

Below are 10 ticking time bombs we routinely uncover in New York Contractors General Liability (CGL) and Umbrella policies—issues that can turn what looks like solid coverage into a financial catastrophe.

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1. Employee Injury Exclusion

At first glance, this exclusion seems logical—after all, workers’ compensation is meant to handle employee injuries. The problem arises when an employee sues a third party (such as an owner or GC), and that party tenders the claim back to you under an indemnification agreement. With an Employee Injury Exclusion, your CGL may refuse to defend or indemnify you, leaving you exposed to contractual liability and defense costs that can easily reach seven figures.

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2. Action Over Exclusion

Few exclusions are more dangerous in New York. An Action Over Exclusion bars coverage when an injured employee sues someone other than their employer (owner, GC, construction manager), and that party seeks indemnification from you. Given New York Labor Law §§ 200, 240, and 241, this exclusion can effectively gut your policy on most major construction losses.

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3. Height Limitation

Height limitations are increasingly common, especially on policies written for cost rather than protection. A claim involving work above a specified height—10 feet, 20 feet, sometimes even 6 feet—may be entirely excluded. On a state defined by scaffolding, ladders, and high-rise construction, this limitation is a silent killer.

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4. Contractors Limitation Endorsement (Scope of Work Restriction)

This endorsement restricts coverage strictly to the operations listed on the policy. If your actual work goes beyond that description—even slightly—the carrier may deny the claim. Contractors often expand services organically over time, unaware their policy has not kept pace. One uninsured task can unravel years of premium payments.

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5. “Hard Hammer” Subcontractor Form

A Hard Hammer Subcontractor Endorsement imposes severe conditions on coverage when subcontractors are involved. Missing certificates, improper contracts, or failure to collect additional insured endorsements can result in outright denial. On multi-trade New York job sites, this endorsement creates constant exposure if compliance is not meticulously managed.

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6. Territorial Restrictions

Some policies limit coverage to specific states or regions. Contractors operating across the tri-state area—New York, New Jersey, and Connecticut—may assume they are covered everywhere they work. A territorial restriction can invalidate coverage the moment you cross a state line.

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7. Exclusion – Temporary, Volunteer, or Casual Workers

This exclusion is especially dangerous for contractors using day laborers, seasonal help, or workers supplied by staffing agencies. If an injured worker is deemed a “temporary” or “casual” employee, the carrier may deny coverage entirely, even if payroll was reported and premiums paid.

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8. Umbrella Policy Does Not Follow Form

Many contractors assume their umbrella policy simply extends the limits of the underlying CGL. Not always. If the umbrella does not “follow form,” it may contain broader exclusions or narrower definitions. The result: a catastrophic loss pierces the primary policy, only to find the umbrella offers no protection.

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9. Privity Requirements for Additional Insureds

Some policies require direct contractual privity for additional insured status to apply. In real-world construction, contracts often flow downstream in complex ways. Without strict privity, owners or upstream contractors may lose AI protection, triggering indemnity disputes and uninsured exposure.

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10. Labor Law Coverage Exclusion

Perhaps the most devastating exclusion of all. A Labor Law Exclusion removes coverage for claims arising under New York Labor Law—the very statute driving the largest construction losses in the state. Contractors are often unaware this exclusion exists until after a scaffold or gravity-related injury occurs.

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Why This Matters

Each of these endorsements may be buried deep within a policy form. Individually, they are dangerous. Combined, they can leave a contractor effectively uninsured for the most common and severe New York construction claims. Price-driven insurance shopping often results in policies designed to minimize carrier exposure—not protect your business.

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How BGES Group Helps New York Contractors

At BGES Group, we do not sell “off-the-shelf” insurance. We specialize in identifying and eliminating these coverage traps before a claim ever happens. Our team understands New York construction risk, Labor Law exposure, and the contractual realities contractors face daily.

We provide:

• Full policy reviews to identify hidden exclusions and endorsements
• Customized General Liability and Umbrella programs built for New York risk
• Contract and additional insured guidance to protect upstream and downstream relationships
• Proactive service across the New York, New Jersey, and Connecticut markets

Whether you are a trade contractor, GC, or specialty subcontractor, our goal is simple: make sure your insurance actually works when you need it.

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Contact BGES Group

If Consider having your policies reviewed before renewal—or before the next job starts.

BGES Group Business Insurance Specialists for New York Contractors Serving the Tri-State Area

📞 Phone: 914-806-5853 – Gary Wallach

📧 Email: bgesgroup@gmail.com

🌐 Website: www.bgesgroup.com

In New York construction, insurance is not about having a policy—it is about surviving the claim. Make sure there are no ticking time bombs hiding in yours.

In 2026, New York contractors are facing a business environment where insurance costs — especially liability and workers’ compensation — are still climbing. Between rising construction project values, regulatory demands, and claims frequency, many contractors feel squeezed on premiums and profitability. But there’s good news: with proactive risk management, smart planning, and the right partners, you can reduce insurance expenses while improving safety and project outcomes.

This guide breaks down how New York contractors can strategically lower liability and workers’ comp insurance costs in 2026 — while protecting their workforce, their business, and their bottom line.

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Why Insurance Costs Are Rising in 2026 (And What It Means for You)

Before diving into solutions, it’s important to understand the landscape:

• Higher Claims Costs: Medical and wage replacement costs continue to rise in NY, driving up claims payouts.

• Litigation Trends: Increased litigation and larger settlements for injury claims impact liability insurance pricing.

• Regulatory Pressure: Compliance with OSHA standards and state-level safety regulations requires documentation and proactive planning.

• Market Competition: Many carriers are tightening underwriting, meaning only the safest, best-documented contractors get favorable rates.

In this environment, simply renewing your insurance year after year without intentional loss control strategies almost always leads to higher premiums.

That’s why risk management and claims prevention aren’t optional — they’re profit tools.

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10 Ways New York Contractors Can Lower Liability & Workers’ Comp Costs in 2026

Here are the most effective, actionable strategies you can implement now:

1. Build a Proactive Safety Culture

Safety isn’t just a slogan. Contractors with an established safety culture — where crews are trained, engaged, and accountable — see far fewer accidents. Fewer accidents = fewer claims = lower premiums.

2. Document Everything

Insurance carriers reward documentation. Keep detailed records of:

• Daily toolbox talks

• Incident reports (even near-misses)

• Safety inspections

• Training attendance logs

This shows carriers you manage risk — not just react to it.

3. Conduct Regular Safety Training

Ongoing training — especially on fall protection, PPE use, equipment operation, and hazard recognition — reduces on-site injuries. Carriers will often give you credits for documented training programs.

4. Partner with a Safety Consultant

An experienced safety consultant can identify hazards you may overlook, implement best practices, and help create loss-control systems that carriers recognize and reward.

5. Implement Return-to-Work Programs

A solid return-to-work program keeps injured employees productive in light-duty roles while reducing lost wage costs. Insurers like this — and often lower comp rates when such programs are in place.

6. Classify Workers Correctly

Misclassification of employees or job codes can artificially inflate your premium. Ensure payroll is filed accurately and job classifications reflect actual risk exposures.

7. Review Subcontractor Controls

You’re only as safe as your subcontractors. Pre-qualify all subcontractors for safety performance and insurance compliance. Contracts should require verifiable coverage and include indemnification language.

8. Benchmark Your Experience Mod (EMR)

Your Experience Modification Rating (EMR) drives a big piece of your workers’ comp premium. Stay below 1.0 by reducing loss history — and if you’ve had a bad year, work with your broker to interpret the EMR and potentially appeal inaccuracies.

9. Leverage Technology

Use project management and safety apps to track hazards, inspections, and corrective actions in real time. Technology not only reduces risk — it illustrates your commitment to carriers.

10. Shop Intelligently and Year-Round

Don’t wait until renewal to compare carriers. Evaluate your insurance options year-round. A strategic insurance partner will recommend markets that value your risk profile, rather than just renewing with the same carrier at a higher price.

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Why These Strategies Work

When you focus on preventing claims instead of just paying for them, several things happen simultaneously:

• You keep your workers safer — which is the number one priority.

• Your claims frequency and severity decrease.

• Insurance carriers view your operation as lower risk.

• You qualify for lower rate tiers, dividends, and safety credits.

• Your EMR improves, which compounds savings year after year.

Insurance becomes not just a cost of doing business — but a strategically managed investment with measurable returns.

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How BGES Group Helps New York Contractors Cut Insurance Costs

At BGES Group, we specialize in helping contractors across New York, New Jersey, Connecticut, and beyond lower liability and workers’ compensation insurance costs while strengthening their risk profile.

What We Do

BGES Group is different from a typical insurance broker. We are construction risk specialists — we understand your work, your exposures, and what drives claims and costs. Our services include:

🔹 Risk and Safety Consulting: We help you build and document safety programs carriers recognize.

🔹 Insurance Placement and Renewal Strategy: We shop the best carriers tailored to your risk profile — not just the ones that renew you automatically.

🔹 Contract Review & Indemnity Guidance: We help you understand and negotiate contract language that impacts coverage and liability.

🔹 Experience Mod (EMR) Management: We analyze your loss history and help implement strategies to improve your rating.

🔹 Claims Advocacy: We work with carriers on your behalf to manage claims quickly and fairly.

🔹 Education & Training Support: We can connect you with training resources that reduce injuries and qualify for insurance credits.

Why Contractors Choose BGES Group

✔ Industry Expertise: We know construction — from drywall and concrete to roofing and electrical.

✔ Proactive Approach: We help you prevent claims before they happen — not just insure you after they do.

✔ Customized Markets: We access carriers who value low losses and effective safety programs.

✔ Nationwide Capability: Though specialized in NY, NJ & CT, our associate network lets us support contractors across the U.S.

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Real Results: The BGES Advantage

Contractors who implement BGES Group’s recommendations often see:

• Lower premiums at renewal

• More favorable policy terms

• Better claims outcomes

• Reduced EMR over time

• Documented safety programs carriers respect

One of the biggest differentiators we bring is hands-on, construction-specific risk analysis. Carriers know that when BGES signs off on a safety program, that contractor means business.

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Your Next Step Toward Lower Insurance Costs

Insurance costs don’t have to eat into your profits. With the right plan and partner, you can:

✅ Reduce frequency and severity of claims

✅ Improve workplace safety

✅ Lower EMR and annual premiums

✅ Increase bidding power with a stronger risk profile

✅ Protect your team and your business

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Contact BGES Group

BGES Group

Construction Insurance & Workers’ Compensation Specialists

📍 Serving New York, New Jersey, Connecticut & Nationwide Support

📞 Gary Wallach – (914) 806-5853

📧 Email: bgesgroup@gmail.com

🌐 Website: www.bgesgroup.com

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Want real results and a tailored plan to cut your insurance costs in 2026?

Contact BGES Group today — we help contractors save money and build safer, more profitable operations.

Construction in New York is unlike construction anywhere else in the country. Contractors face congested job sites, overlapping trades, demanding project schedules, strict oversight, and one of the most plaintiff-friendly legal environments in the nation. A single incident—no matter how small—can quickly escalate into a lawsuit seeking hundreds of thousands or even millions of dollars in damages.

That reality makes contractor liability insurance in New York far more than a box to check for permits or contracts. It is a foundational risk-management tool. Unfortunately, many contractors only learn what their policy actually covers after a claim is denied. This article explains how New York contractor liability insurance works, what it is intended to protect, what it typically excludes, and why working with a construction-focused agency like BGES Group can be critical.

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What Contractor Liability Insurance Means in New York

At its core, contractor liability insurance is built on a Commercial General Liability (CGL) policy, often layered with excess or umbrella liability coverage. These policies are designed to protect contractors against third-party claims involving bodily injury, property damage, and associated legal defense costs tied to construction operations.

In New York, however, liability coverage must be structured to address additional exposures, including:

• New York Labor Law liability
• Action-over lawsuits
• Broad contractual indemnification requirements
• Additional insured obligations
• High-severity jury awards and settlements

A policy that performs adequately in another state may fail completely in New York if it is not specifically designed for this legal environment.

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Common Claims That May Be Covered

When properly written for New York construction risks, a contractor’s liability program can respond to many real-world claims, including:

1. Slip, Trip, and Fall Incidents Injuries to pedestrians, inspectors, visitors, or delivery personnel caused by job site conditions.
2. Contractual Indemnification Claims Liability assumed under qualifying written construction contracts.
3. Additional Insured Claims Protection extended to owners, general contractors, and construction managers arising out of your work.
4. New York Labor Law Claims Claims under Labor Law §§ 200, 240, and 241—some of the most expensive claims in the industry.
5. Action-Over Lawsuits Third-party claims where owners or GCs seek indemnification following a worker injury.
6. Completed Operations Losses Claims occurring after project completion, sometimes long after work has ended.
7. Third-Party Property Damage Damage to surrounding structures, sidewalks, utilities, or nearby vehicles.
8. Injuries to Non-Employees Bodily injury claims involving the public or other contractors’ employees.
9. Legal Defense Costs Attorney fees, expert witnesses, investigations, and court expenses—even for baseless claims.
10. Certain Personal or Advertising Injury Claims Coverage for allegations such as libel or slander, depending on policy wording.

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Exposures Commonly Excluded From Coverage

Knowing what a liability policy does not cover is just as important. Common exclusions include:

1. Employee Injuries Covered under workers’ compensation—not general liability.
2. Intentional or Criminal Conduct Deliberate acts, fraud, or criminal behavior are uninsurable.
3. Professional or Design Errors Engineering, architectural, or design-build mistakes require professional liability coverage.
4. Defective Workmanship Alone The cost to repair or redo your own work without resulting damage or injury.
5. Pure Contractual Disputes Breach-of-contract claims without bodily injury or property damage.
6. Prior or Known Claims Incidents occurring before the policy’s effective date.
7. Undeclared or Excluded Operations Work outside your listed classifications may be denied.
8. Height or Location Restrictions Losses involving excluded heights or locations.
9. Pollution-Related Exposures Mold, asbestos, silica, lead, and similar hazards typically require separate coverage.
10. Vehicle-Related Accidents Covered under commercial auto insurance—not liability.

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Where High-Volume Agencies Miss the Mark

Many contractors unknowingly place their coverage with large, production-style agencies that prioritize speed and volume. These agencies often:

• Constant Account Executive turnover
• Inexperienced employees
• People never answer their phones
• They do not review policies
• Takes hours to get certificates
• Charge ridiculous policy and service fees

In New York construction, even one missing endorsement or a poorly structured umbrella policy can result in devastating financial consequences.

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Why Contractors Choose BGES Group

BGES Group specializes in New York construction insurance—and intentionally operates as a boutique agency.

We believe personalized service leads to better protection.

Our approach includes:

• Direct access to experienced construction insurance professionals
• In-depth understanding of New York Labor Law and action-over exposure
• Contract and indemnification review before problems arise
• Customized liability and umbrella programs built around real claims scenarios
• Hands-on claims advocacy when it matters most

Our goal is simple: help contractors understand their coverage before a lawsuit tests it.

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Contact BGES Group

If you are a New York contractor and want a knowledgeable review of your liability insurance, BGES Group is ready to assist.

BGES Group

🌐 Website: www.bgesgroup.com

📞 Phone: 914-806-5853

📧 Email: bgesgroup@gmail.com

👤 Contact: Gary Wallach

Construction in New York is inherently risky. Your insurance program should reduce that risk—not add to it. BGES Group helps contractors protect what they build with clarity and confidence.

For many Tri-State business owners, workers’ compensation insurance feels less like a safety net and more like a constant obstacle. Applications get declined, premiums skyrocket overnight, or a long-time carrier suddenly issues a non-renewal with little warning. Industries such as construction, manufacturing, trucking, hospitality, and other labor-intensive businesses are hit especially hard. A single claim, payroll audit issue, or employee misclassification can quickly push a company out of the standard insurance market.

This is where BGES Group makes a real difference.

Workers’ compensation insurance is complex and highly underwritten. It’s not just about filling out an application—it’s about understanding how carriers view risk and knowing how to properly present your business. BGES Group specializes in helping Tri-State business owners who are having trouble securing workers’ comp coverage, controlling escalating costs, or recovering from past insurance problems. Instead of settling for an unaffordable quote or being forced into the wrong program, BGES Group works to create real solutions.

10 Workers’ Compensation Problem Areas BGES Group Can Help With

1. Declinations from Standard Carriers When traditional insurers say no, BGES Group knows which alternative and specialty markets to approach.
2. High Experience Modification (MOD) Factors Elevated MODs can crush premiums—BGES Group helps implement strategies to improve them over time.
3. Lapses in Coverage Even short gaps can cause automatic declines. BGES Group helps explain and correct coverage lapses.
4. Prior Claims History One bad year shouldn’t define your business forever. BGES Group helps reposition your risk profile.
5. Employee Misclassification Incorrect class codes often lead to inflated premiums. BGES Group reviews and fixes these issues.
6. Payroll Audit Disputes Unexpected audit bills are common. BGES Group helps prevent them and challenge errors when possible.
7. New or Rapidly Growing Businesses Startups and fast-growing companies are often flagged by carriers—BGES Group knows how to present growth correctly.
8. Multi-State or Tri-State Operations Operating across state lines adds complexity. BGES Group ensures proper compliance and coverage.
9. Assigned Risk or State Fund Placement If assigned risk is your only option, BGES Group works to control costs and plan an exit strategy.
10. Carrier Non-Renewals When an insurer pulls out unexpectedly, BGES Group moves quickly to prevent coverage gaps.

Why BGES Group Is Different

BGES Group doesn’t just place policies—they advocate for business owners. With deep market relationships and hands-on underwriting experience, they focus on long-term stability, not temporary fixes. The goal is simple: secure coverage today while positioning your company for better options tomorrow.

Contact BGES Group

If workers’ compensation insurance is becoming a roadblock for your business, it’s time to get expert help.

Gary Wallach – BGES Group

📞 914-806-5853

📧 bgesgroup@gmail.com

🌐 www.bgesgroup.com

BGES Group helps Tri-State business owners find workers’ compensation solutions when others say it can’t be done.

As 2026 begins, contractors across the country aren’t just setting personal goals—they’re wishing for practical changes that would make their businesses stronger, safer, and more profitable. After years of volatile material costs, labor shortages, tighter insurance markets, and increasing regulatory pressure, contractors know exactly what they want from the new year. These aren’t pie-in-the-sky dreams; they’re grounded resolutions that reflect the realities of running a construction business in today’s environment.

Here are 10 New Year’s resolutions contractors wish for in 2026—and why each one matters.

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1. Predictable and Fair Insurance Markets

At the top of almost every contractor’s wish list is stability in insurance. Contractors want fewer last-minute non-renewals, more transparency from carriers, and premiums that reflect actual risk—not blanket assumptions. A predictable insurance market allows contractors to bid jobs confidently and plan growth without fear of sudden coverage gaps.

2. Fewer Claims, Better Loss Control

No contractor plans for claims, but many wish 2026 brings better jobsite safety, stronger subcontractor controls, and fewer surprises. Improved safety programs don’t just protect workers—they protect margins, reputations, and future insurability.

3. Reliable Labor and Skilled Workers

The labor shortage continues to challenge the industry. Contractors hope 2026 brings more skilled tradespeople entering the workforce, better retention, and fewer disruptions caused by staffing gaps. Reliable labor means projects stay on schedule and clients stay happy.

4. Stable Material Pricing

Wild swings in material costs have wreaked havoc on budgets over the last few years. Contractors wish for more stable pricing so they can estimate jobs accurately, protect profits, and avoid constant renegotiations with owners.

5. Faster Payments and Better Cash Flow

Late payments remain one of the biggest stressors for contractors. In 2026, contractors are hoping for owners and GCs who pay on time, fewer disputes, and smoother cash flow that allows them to focus on building—not chasing checks.

6. Stronger Contracts with Less Fine Print Risk

Many contractors wish they could enter 2026 with clearer, fairer contracts. That means fewer one-sided indemnification clauses, reasonable insurance requirements, and less hidden risk buried in legal language. Better contracts lead to fewer disputes and cleaner project closeouts.

7. Fewer Regulatory Headaches

From changing labor laws to compliance requirements, contractors are dealing with more regulation than ever. A major 2026 resolution is simplicity—clear rules, consistent enforcement, and fewer administrative burdens that pull owners away from running their businesses.

8. Trusted Advisors Instead of Call Centers

Contractors don’t want to explain their business to a new person every time they pick up the phone. In 2026, they’re wishing for trusted advisors—people who know their account, their projects, and their risk profile, and who can act quickly when issues arise.

9. Better Risk Management, Not Just Coverage

Smart contractors know insurance alone isn’t enough. They want proactive risk management: guidance on certificates, additional insured language, subcontractor controls, and claims strategy. The goal is fewer problems before they start—not just coverage after the fact.

10. Peace of Mind

Above all, contractors wish for peace of mind in 2026. They want to know that their insurance, risk management, and compliance are handled correctly so they can focus on what they do best—building, growing, and leading their companies.

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Where BGES Group Fits In

At BGES Group, these contractor “wishes” aren’t abstract ideas—they’re exactly what we work on every day.

BGES Group is a construction-focused insurance brokerage built around one core principle: be there when contractors need us most. We understand the realities of construction because we live them daily alongside our clients. When markets tighten, claims happen, or last-minute issues threaten a job, contractors don’t need excuses—they need answers.

We work with contractors across trades to secure competitive, properly structured insurance programs, even in difficult markets. More importantly, we don’t disappear after the policy is bound. Our clients deal with one knowledgeable, reliable point of contact who knows their account and responds day and evening—not a rotating call center.

BGES Group helps contractors with:

• General liability, excess liability, workers’ compensation, and umbrella programs
• Contract review support and insurance requirement analysis
• Additional insured and certificate compliance
• Risk management strategies designed to reduce claims and long-term costs
• Guidance through audits, renewals, and claims advocacy

We pride ourselves on being street-smart, transparent, and proactive. We tell contractors the truth about the market, prepare them in advance, and help them avoid problems before they turn into costly mistakes. In short, we aim to deliver exactly what contractors are wishing for in 2026: stability, clarity, and peace of mind.

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Start 2026 with the Right Partner

If your New Year’s resolution is to work with an insurance broker who actually answers the phone, understands construction, and treats your business like their own, BGES Group is ready to help.

BGES Group Gary Wallach

📞914-806-5853

📧 bgesgroup@gmail.com

🌐 www.bgesgroup.com

For business owners across New York, New Jersey, and Connecticut, workers’ compensation insurance is not optional—it’s essential. Yet many employers don’t realize how quickly their policy can become outdated, overpriced, or even dangerous to the financial health of their company. If you’ve renewed year after year without a deep review, struggled with rising premiums, been hit with surprise audits, or worried whether your coverage would actually respond to a serious claim, you’re not alone.

The Tri-State area is one of the most complex insurance environments in the country. Strict labor laws, aggressive enforcement, high medical costs, and a legal climate that favors injured workers all combine to make workers’ compensation insurance both critical and challenging. A policy that worked for your business two or three years ago may no longer be adequate today—especially if you’ve grown, hired new types of employees, added subcontractors, or expanded into new states.

So the real question is not “Do I have workers’ comp insurance?”

It’s “Do I have the right workers’ compensation insurance—and am I paying more than I should for it?”

That’s where BGES Group comes in.

Do You Need Help Getting New Workers’ Compensation Insurance?

Many business owners assume switching workers’ compensation carriers is difficult, risky, or disruptive. In reality, staying with the wrong policy can be far more dangerous. If any of the following sound familiar, it may be time to seek professional help:

• Your premiums increase every year, even with few or no claims
• You’re in the NYSIF or an assigned risk pool and want options
• You’ve experienced a painful audit bill after policy expiration
• Your payroll classifications don’t reflect what your employees actually do
• You’re expanding, hiring, or restructuring your company
• You’ve had a claim that spiraled out of control
• You’re unsure whether subcontractors are properly covered

BGES Group specializes in helping Tri-State business owners navigate these exact challenges. We don’t just place policies—we solve problems.

10 Workers’ Compensation Problems BGES Group Can Help You Solve

1. Overpaying for Workers’ Compensation

Many employers are unknowingly overpaying due to improper classifications, inflated payroll estimates, or lack of carrier competition. BGES Group reviews your policy line by line to uncover savings opportunities without sacrificing coverage.

2. Incorrect Class Codes

Misclassified employees are one of the biggest reasons premiums skyrocket. BGES Group works to ensure your workforce is properly classified based on actual job duties—not assumptions that favor the insurance carrier.

3. Assigned Risk or NYSIF Dependence

If you’ve been told you have “no other options,” that’s often not true. BGES Group helps qualified businesses move from assigned risk pools to competitive voluntary markets when possible.

4. Costly Audit Surprises

End-of-year audit bills can cripple cash flow. BGES Group helps you prepare properly, organize payroll records, and structure policies to reduce audit exposure before it becomes a problem.

5. Claims That Get Out of Control

A single poorly managed claim can impact your experience modification factor for years. BGES Group helps clients understand claim management strategies and coordinates with carriers to limit long-term damage.

6. High Experience Modification Factor (MOD)

A high MOD can cost you contracts and inflate premiums. BGES Group works with business owners to improve MOD scores over time through proactive planning and claim analysis.

7. Subcontractor and 1099 Exposure

Uninsured or improperly insured subcontractors can come back to haunt you during audits and claims. BGES Group helps you implement risk transfer strategies and proper certificate tracking.

8. Multi-State Workers’ Compensation Issues

Operating in multiple states adds complexity. BGES Group ensures your policy complies with each state’s requirements while avoiding unnecessary costs or coverage gaps.

9. Growth and Business Changes

Hiring new employees, changing operations, or expanding services can quietly invalidate assumptions in your current policy. BGES Group helps align your coverage with where your business is going—not where it used to be.

10. Lack of Guidance and Advocacy

Many agents disappear after binding the policy. BGES Group acts as an ongoing advocate—helping with audits, claims questions, carrier negotiations, and strategic planning throughout the year.

Why Tri-State Business Owners Choose BGES Group

BGES Group is not a call-center broker or a one-size-fits-all agency. We specialize in workers’ compensation and contractor-focused insurance solutions, with deep knowledge of New York and Tri-State regulations. Our approach is consultative, proactive, and built around protecting your business long-term—not just getting through renewal.

We understand that workers’ compensation insurance directly affects:

• Your bottom line
• Your ability to win contracts
• Your legal and regulatory compliance
• Your personal financial exposure

When it’s done right, workers’ compensation becomes a managed cost. When it’s done wrong, it becomes a ticking time bomb.

Ready to See If You’re Properly Covered?

If you’re a Tri-State business owner wondering whether your current workers’ compensation insurance still makes sense, a second opinion could save you money—and serious headaches.

Contact BGES Group today:

BGES Group

Website: www.bgesgroup.com

Gary Wallach

Phone: 914-806-5853

Email: bgesgroup@gmail.com

Let BGES Group help you turn workers’ compensation insurance from a burden into a strategic advantage.

In New York’s construction industry, timing is everything. A delayed certificate can shut down a jobsite. A missed endorsement can violate a contract. A misunderstood exclusion can turn a manageable claim into a financial nightmare. Contractors don’t just need insurance—they need an insurance broker who understands the pressure, complexity, and real-world consequences of building in New York. For too long, many contractors have been stuck with brokers who disappear after binding, route calls to voicemail, or hand their account off to someone who doesn’t truly know their business.

That’s why more New York contractors are saying the same thing: finally, there’s a construction insurance broker who’s there when we need them most.

That broker is BGES Group.

Built for the Realities of New York Construction

Construction in New York isn’t theoretical—it’s boots on the ground, cranes in the air, and deadlines that don’t wait. From Labor Law exposure to additional insured requirements, action-over claims, wrap-ups, excess liability, and demanding owners and construction managers, contractors face a level of risk and scrutiny unlike almost anywhere else in the country.

BGES Group was built specifically to operate in this environment.

This isn’t a generalist insurance shop dabbling in construction. BGES Group works with contractors every day and understands how projects actually function—from bidding and contract review to certificates, claims, audits, and renewals. That “street smart” knowledge makes the difference between insurance that looks good on paper and coverage that actually works when something goes wrong.

When You Call, a Real Person Answers—Day and Evening

One of the most common complaints contractors have about insurance brokers is simple: no one answers the phone.

At BGES Group, accessibility isn’t a marketing slogan—it’s how business is done. Calls are answered during the day and the evening, because construction problems don’t operate on a 9-to-5 schedule. When a superintendent needs a certificate after hours, or an owner is demanding proof of coverage before morning, BGES Group understands the urgency.

You don’t get stuck in a phone tree.
You don’t wait days for a response.
You don’t have to explain the same issue over and over again.

You get answers—when you need them.

One Point of Contact Who Knows Your Account

Another frustration contractors know all too well is being passed from person to person. One person handles the quote, another issues certificates, someone else deals with endorsements, and no one has the full picture. That fragmentation leads to mistakes, delays, and costly misunderstandings.

At BGES Group, contractors deal with one dedicated professional who knows their account inside and out.

That means:

• Someone who understands your operations, trades, and project types
• Someone who knows your insurance history and risk profile
• Someone who understands your contracts and recurring requirements
• Someone who can spot issues before they turn into problems

This continuity builds efficiency, accuracy, and—most importantly—trust.

Reliable, Trustworthy, and Knowledgeable—No Guesswork

Construction insurance in New York leaves little room for error. A missing endorsement or poorly worded additional insured provision can invalidate coverage. A misunderstood exclusion can create a coverage gap that only becomes apparent after a claim is filed.

BGES Group prides itself on being reliable and detail-oriented. Contractors aren’t sold policies and left to fend for themselves. Coverage is explained clearly, endorsements are reviewed carefully, and potential problem areas are flagged early.

Equally important, BGES Group is straightforward and honest. If something can’t be done, contractors are told upfront. If a risk is being underestimated, it’s addressed directly. If a better solution exists—even if it’s not the easiest one—it’s explored.

That level of transparency builds long-term relationships, not short-term transactions.

Street Smart Experience That Protects Contractors

There’s a difference between knowing insurance and knowing construction insurance in New York. BGES Group brings a practical, street-level understanding of how claims actually arise and how carriers respond once money is on the line.

This experience matters when:

• Structuring CGL and Excess programs to handle Labor Law exposure
• Evaluating action-over risk and employee exclusions
• Coordinating coverage across subcontractors
• Navigating wrap-up (OCIP/CCIP) complications
• Dealing with aggressive claims handling and coverage challenges

BGES Group doesn’t just place policies—they help contractors avoid the traps that too often lead to denied claims and uninsured losses.

There When You Need Them Most

Anyone can look good when nothing is happening. The true test of a broker is how they perform when a contractor is under pressure—when a claim hits, a job is stalled, or an owner is demanding immediate proof of compliance.

That’s when BGES Group steps up.

Contractors work with BGES Group because they know they won’t be left alone at critical moments. Whether it’s helping respond to a claim, working through a coverage issue, or solving a last-minute insurance problem that threatens a project, BGES Group is present, responsive, and engaged.

In an industry where reliability can mean the difference between profit and loss, that support is invaluable.

A Broker Who Works Like a Partner

The best way to describe BGES Group isn’t as an insurance vendor—it’s as a partner. Contractors don’t have time to chase brokers, decode policy language, or fight preventable insurance battles. They need someone who understands their world and is invested in protecting their business.

BGES Group fills that role by combining:

• Accessibility
• Consistency
• Technical knowledge
• Practical construction insight
• A commitment to doing things the right way

For New York contractors who are tired of excuses, delays, and generic service, BGES Group represents something different—and long overdue.

Contact BGES Group

If you’re a New York contractor looking for an insurance broker who answers the phone, knows your account, and stands with you when it matters most, it’s time to speak with BGES Group.

BGES Group
Gary Wallach
📞 914-806-5853
✉️ bgesgroup@gmail.com
🌐 www.bgesgroup.com

Because in New York construction, the right insurance broker doesn’t just place coverage—they protect your livelihood.

New York contractors operate in one of the most litigious construction environments in the country. Between New York Labor Law §§ 200, 240, and 241, aggressive plaintiff attorneys, high jury awards, and complex contractual risk transfer requirements, even well-insured contractors can find themselves exposed to lawsuits that exceed or fall outside their liability insurance coverage.

Insurance is critical—but insurance alone is not enough.

This article explains, at a high level, how New York contractors can structure their businesses and operations to better protect personal and company assets from large lawsuits that liability policies may not fully cover. Just as important, we will also explain how working with the right insurance advisor—like BGES Group—can help close many of the gaps that lead to devastating claims in the first place.

Important Disclaimer:

We are not attorneys, and this article is for general informational purposes only. Business formation, asset protection, and risk management strategies depend on individual circumstances and New York law. You must consult with a qualified attorney and tax professional before making any legal or structural decisions. Do not treat this article as legal advice or “the gospel.”

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Why Insurance Alone Isn’t Always Enough

Many contractors assume that if they carry general liability, workers’ compensation, and an umbrella policy, they are fully protected. Unfortunately, that’s not always the case.

Some common gaps include:

• Claims that exceed policy limits

• Contractual liability assumed but not properly insured

• Exclusions buried in policy language

• Personal liability due to improper business structure

• Claims involving gross negligence, labor law exposure, or uninsured subcontractors

When these situations arise, plaintiffs often look beyond the insurance policy and go straight after the company’s assets—or even the owner personally.

That’s where proper company setup and risk layering becomes essential.

Choosing the Right Business Entity Matters

One of the most important steps a New York contractor can take is selecting the right legal entity.

Sole Proprietorship: High Risk

Operating as a sole proprietor offers no legal separation between you and your business. If your company is sued, your personal assets—home, savings, investments—can be at risk, regardless of insurance.

LLC or Corporation: A Necessary Shield

Most contractors should operate as either:

• A Limited Liability Company (LLC), or

• A Corporation (S-Corp or C-Corp)

When properly set up and maintained, these entities create a legal barrier between business liabilities and personal assets.

However, simply forming an LLC is not enough.

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Maintaining the “Corporate Veil”

Courts in New York can “pierce the corporate veil” if the business is not run properly. This means personal assets may still be exposed even if an LLC or corporation exists.

To maintain protection:

• Keep separate business and personal bank accounts

• Never pay personal expenses from the business account

• Use written contracts in the company’s name

• Maintain proper licenses and registrations

• File required annual reports

• Keep operating agreements and corporate records up to date

This is an area where attorneys and accountants are essential—but insurance professionals play a role by ensuring contracts and policies align with the entity structure.

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Using Multiple Entities for Risk Segmentation

Some larger or growing contractors choose to separate operations into multiple entities. For example:

• One entity owns equipment

• One entity employs labor

• One entity signs contracts

The idea is to limit exposure so that a catastrophic lawsuit in one area does not jeopardize the entire operation.

This approach must be done carefully. Poorly structured entity layering can create tax issues, insurance coverage disputes, and even increased legal exposure if done incorrectly. Again, legal guidance is critical—but insurance must be coordinated across all entities to avoid dangerous coverage gaps.

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Contracts Are as Important as Insurance Policies

Many large claims arise not from accidents alone, but from bad contracts.

Key contract issues include:

• Indemnification clauses that go beyond insurance coverage

• Additional insured requirements that are impossible to meet

• Waivers of subrogation not properly endorsed

• “Defense outside limits” assumptions that are incorrect

• Agreements that shift all liability upstream or downstream unfairly

Contractors should never sign contracts without understanding how they interact with their insurance program. This is where experienced insurance advisors add tremendous value.

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Umbrella and Excess Liability: How Much Is Enough?

New York verdicts can be enormous—especially under Labor Law 240 (“Scaffold Law”). A $1 million general liability policy may barely scratch the surface of a serious injury claim.

Umbrella and excess liability policies:

• Provide higher limits

• Can drop down over certain claims

• Often require careful underwriting and disclosure

However, umbrellas are not all the same. Some follow form, some don’t. Some exclude labor law claims. Some require strict underlying coverage compliance.

This is another area where contractors think they are protected—until a claim is denied or limited.

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Workers’ Compensation Strategy Reduces Lawsuit Exposure

Workers’ compensation isn’t just about statutory compliance. A properly structured workers’ comp program:

• Reduces employee injury frequency

• Limits third-party over actions

• Improves defense against labor law claims

• Keeps experience modification factors under control

Poor workers’ comp management can increase both insurance costs and lawsuit severity.

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Why Working With the Right Insurance Advisor Is Critical

This is where BGES Group comes in.

At BGES Group, we specialize in working with New York contractors across all trades. We understand:

• New York Labor Law exposure

• OCIP and CCIP projects

• Additional insured and contractual risk transfer

• Completed operations issues

• Workers’ compensation strategies

• Umbrella and excess liability placement

• How underwriters view New York risk

We don’t just “sell policies.” We help contractors identify where lawsuits come from, where insurance stops, and how to structure coverage to reduce exposure before claims happen.

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Insurance as Part of a Larger Protection Plan

The smartest contractors treat insurance as one layer of protection—not the only one.

A strong protection plan includes:

• Proper legal entity structure

• Sound contracts

• Disciplined operations

• Safety programs

• Correct insurance placement

• Ongoing reviews as the business grows

BGES Group works alongside attorneys, CPAs, and contractors to make sure insurance supports the broader risk strategy—not undermines it.

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Final Thoughts

Large lawsuits are not a matter of “if” in New York construction—they are a matter of when. Contractors who survive and thrive are the ones who plan ahead, structure their companies properly, and work with professionals who understand the realities of New York risk.

Again, we are not attorneys, and you must seek legal advice before implementing any structural changes. But ignoring these issues entirely is far riskier than addressing them proactively.

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About BGES Group

BGES Group is a New York–based insurance brokerage specializing in construction insurance and workers’ compensation for contractors and businesses across all industries. We help clients identify risk, close coverage gaps, and position their companies for long-term stability in a challenging legal environment.

Contact Information:

• BGES Group

• Website: www.bgesgroup.com

• Phone: 914-806-5853

• Email: bgesgroup@gmail.com

If you’re a New York contractor and want a second set of eyes on your insurance program—or want to understand where your real exposure lies—BGES Group is here to help.

New York Labor Laws 240 and 241 are critical statutes that directly affect contractors, subcontractors, and property owners working in the construction industry. Commonly referred to as the Scaffold Law, Labor Law 240 imposes strict liability on contractors and property owners for falls and related injuries resulting from inadequate fall protection. It mandates that workers performing tasks on elevated surfaces must be protected by appropriate safety equipment like harnesses, guardrails, or scaffolding, and makes their employers strictly liable for injuries that occur due to a lack of such protections regardless of fault. Labor Law 241 complements this by incorporating specific safety standards, largely drawn from the New York Industrial Code, that require employers to provide construction workers with a workplace free from recognized hazards. Together, these laws were enacted to prioritize worker safety, ensure proper safety protocols, and reduce the number of preventable injuries in construction and renovation sites across New York State.

Compliance with these laws has wide-ranging implications for contractors beyond just safety practices. Because 240 and 241 operate under strict liability in many cases, injured workers can pursue claims against insurers and contractors without needing to prove negligence. For contractors operating in New York, this has influenced insurance underwriters’ perspectives and increased scrutiny when writing Commercial General Liability (CGL) policies. Insurers view the state’s liability landscape as high risk, which can lead to higher premiums, narrower coverage terms, and more frequent disputes over policy application after accidents occur. As a result, understanding the nature of labor law claims and how they intersect with liability insurance is essential for any contractor doing business in New York.

Five Types of Labor Law Claims Contractors May Face

1. Fall from Height A classic Labor Law 240 claim involves a construction worker falling from an unprotected elevated surface — for example, a worker falling from a roof edge while installing HVAC equipment. If the contractor fails to supply or enforce the use of appropriate fall protection, they can be held strictly liable for the worker’s injuries. Because fault is not a defense under this statute, even if the injured worker disregarded provided safety measures, the contractor and responsible parties may be financially accountable.
2. Falling Debris Injuries Under Labor Law 241’s safety standards, contractors must implement safeguards to prevent tools, materials, or debris from falling and injuring workers below. Imagine a scenario where unsecured tools fall from scaffolding and strike a laborer on a lower level. Such an incident may prompt a Labor Law 241 claim alleging inadequate protective measures, such as missing overhead protection or netting.
3. Trenching and Excavation Collapse Trenching work poses unique hazards, and without proper shoring, benching, or shielding, an excavation collapse can result in serious injury or death. Labor Law 241 mandates that employers follow established safety codes for excavation work. If a collapse occurs because these codes weren’t followed, the injured party could pursue a claim against the contractor for failing to comply with the statutory safety requirements.
4. Defective Scaffold or Ladder Claim Labor Law 240 claims are not limited to cases involving the absence of fall protection; they also include the use of defective or improper safety equipment. A worker injured due to a malfunctioning scaffold or faulty ladder may trigger a strict liability claim under 240, asserting that appropriate, safe equipment was not provided despite regulatory expectations.
5. Action Over Claim (Third-Party Liability) While most labor law lawsuits arise directly from injured workers, Action Over claims involve third parties — often subcontractors — seeking indemnity or contribution from a general contractor or property owner. For example, if a subcontractor is sued by an injured employee and believes that the general contractor’s failure to maintain a safe worksite was the cause, they may file an Action Over claim to shift or share liability. These claims can significantly complicate defense strategies and risk allocation among project stakeholders.

Securing Coverage Under a CGL Policy

For New York contractors, a Commercial General Liability (CGL) policy provides essential financial protection against bodily injury and property damage claims arising from jobsite incidents. However, because of the unique nature of Labor Laws 240 and 241, not all CGL policies automatically respond to these claims. Insurers may include specific endorsements or exclusions that limit coverage for strict liability claims, especially those rooted in scaffold and elevation-related injuries. Contractors must therefore be diligent when selecting and reviewing CGL coverage to ensure that it truly protects them against the full range of labor law exposures present in New York.

A standard CGL policy without proper endorsements might technically provide liability coverage for bodily injury, but carriers often deny coverage post-accident by invoking exclusions that purport to remove coverage for certain categories of labor law claims. These denials can leave contractors exposed to significant defense costs and potentially devastating judgments. To mitigate this exposure, contractors should negotiate with brokers and underwriters to secure proper policy language that remains as broad and inclusive as possible in covering Labor Law 240 and 241 claims.

Three Critical Policy Exclusions to Avoid or Modify

1. Action Over Exclusion An Action Over exclusion prevents a CGL policy from covering claims where another insured — typically a subcontractor — sues the named insured (often a general contractor) seeking indemnity or contribution after a third-party injury. Given the prevalence of Action Over claims in the aftermath of Labor Law incidents, especially in multi-tiered construction projects, excluding this type of coverage can expose a contractor to substantial unreimbursed liabilities. Contractors must ensure that their CGL forms either omit this exclusion entirely or include endorsements that restore coverage.
2. Employee Injury Exclusion Many CGL policies contain exclusions for injuries to employees of the insured, reasoning that such risks should be covered under workers’ compensation. However, because Labor Laws 240 and 241 allow injured workers to pursue third-party claims against contractors and owners beyond traditional workers’ compensation, a broad employee injury exclusion can swallow up valid liability coverage. It is vital to negotiate the narrowing or removal of this exclusion so that claims brought by employees — such as those under strict liability statutes — are still eligible for defense and indemnity under the CGL.
3. Limited Contractual Liability Exclusion Contractors often enter into contractual agreements that require them to assume liability for certain jobsite risks. CGL policies may include a limited contractual liability exclusion that narrows or eliminates coverage for liabilities assumed under contract. Since many construction contracts include indemnity provisions related to compliance with safety laws, ensuring that the CGL policy covers these assumed contractual liabilities — particularly those involving Labor Laws 240 and 241 — is paramount. Contractors should seek tailored endorsements to expand contractual liability coverage where necessary.

BGES Group: Your Partner in New York Construction Insurance

Given the complexity of New York’s construction liability environment, working with specialists who understand labor law exposures and insurance markets is essential. That’s where BGES Group stands apart. We are seasoned experts in construction insurance, with a dedicated focus on providing tailored solutions for contractors navigating New York’s unique regulatory and risk landscape. From designing robust CGL policies that address strict liability exposures to ensuring critical exclusions are appropriately negotiated, BGES Group is committed to protecting your business from the unforeseen financial consequences of jobsite accidents.

Our deep industry knowledge enables us to analyze your risk profile and secure coverage that aligns with your operations, project mix, and contractual obligations. Whether you’re a general contractor, subcontractor, or specialty trade, we take a proactive approach — helping you understand not only what your policy covers, but also where gaps might exist and how to address them before a claim arises.

Contact BGES Group

To learn more about construction liability insurance tailored for New York contractors or to review your current coverage, reach out to our team: BGES Group

📞 Phone: 914-806-5853 – Gary Wallach

📧 Email: bgesgroup@gmail.com

🌐 Website: www.bgesgroup.com

Protect your business with confidence — partner with BGES Group for expert guidance and industry-leading construction insurance solutions.

As the construction industry continues its rebound from the recession, contractors are facing a rapidly changing risk landscape. Growth brings opportunity—but it also introduces new exposures that, if left unaddressed, can result in significant financial and legal consequences.

Labor shortages, expanded responsibilities in design, and increased reliance on technology are fundamentally changing how construction firms operate. To stay protected, contractors must reassess their risk management strategies and ensure their insurance coverage keeps pace with these evolving challenges. Below is a closer look at three of the most critical risks impacting the construction industry today.

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The Ongoing Shortage of Qualified Workers

The construction industry has struggled with a labor shortage for years, and the issue has only intensified in the wake of the COVID-19 pandemic and increased immigration enforcement actions in 2025. According to Associated Builders and Contractors, the industry will need approximately 439,000 new workers in 2025 and nearly 499,000 more in 2026 to meet demand.

As construction activity ramps up, many firms are finding it increasingly difficult to hire skilled tradespeople, as well as experienced project managers, engineers, and estimators. This shortage often forces existing employees to take on heavier workloads, increasing the likelihood of workplace injuries, errors, and project delays.

In addition, contractors are employing more inexperienced workers who may lack proper safety awareness or the ability to identify hazards. This not only puts those workers at risk but also increases exposure for the entire job site.

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Rising Professional Liability Exposure

More project owners are now seeking “design-build” solutions, asking contractors to take on both design and construction responsibilities. While this can be attractive from a business standpoint, it introduces a significant new risk: professional liability.

Standard contractor insurance policies typically do not cover design-related errors or omissions. When a contractor performs any design work—even partially—they assume responsibility for design deficiencies. This liability remains even if the actual construction is subcontracted.

Courts have consistently ruled that design professionals who engage in traditional construction activities lose certain liability protections. Likewise, contractors who perform design-related services can no longer shift responsibility for design flaws to architects or engineers. Without the proper professional liability coverage, contractors may be left exposed to costly claims.

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The Growing Threat of Cyber-Security Risks

Technology has become integral to modern construction operations. From project management software to digital blueprints and employee records, contractors are storing more sensitive data than ever before.

While construction firms may not store credit card data, they do maintain confidential project designs and personal employee information. Cyber incidents are no longer hypothetical risks—they are happening in real time.

In one recent case, a contractor’s foreman had a company-issued laptop stolen from a café. The device contained sensitive company data and building design information. Due to confidentiality clauses in the firm’s contracts, the contractor was required to notify 2,300 current and former employees of a potential data breach and provide one year of credit monitoring.

Even though there was no evidence that the data was ever misused, the notification and monitoring costs totaled $25,000 out of pocket—a loss that could have been mitigated with proper cyber liability coverage.

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The Takeaway: Align Insurance with Today’s Risks

As construction risks evolve, it’s essential for contractors to openly discuss changes in their operations during the insurance renewal process. Expanding services, workforce challenges, and increased use of technology may require additional coverages—such as professional liability and cyber insurance—to ensure your business is fully protected.

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How BGES Group Can Help

At BGES Group, we specialize in helping construction firms navigate today’s complex risk environment. We work closely with contractors, builders, and construction-related businesses to identify exposures, structure appropriate insurance programs, and ensure coverage keeps pace with how you actually operate. We service New York, New Jersey & Connecticut.

Whether you’re facing labor challenges, taking on design responsibilities, or concerned about cyber risks, BGES Group can help protect your business today and into the future.

Contact BGES Group:

Gary Wallach 📞 914-806-5853

📧 bgesgroup@gmail.com

🌐 www.bgesgroup.com

Let us help you build with confidence.