In New York State, employers are required by law to carry workers’ compensation insurance for all employees. This requirement applies whether the business is seasonal, part-time, or full-time. Failing to carry proper coverage—even inadvertently—can lead to significant penalties and legal consequences. However, if a lapse occurs due to an honest mistake, there are steps you can take to resolve the situation and minimize the fallout.

Penalties for Not Carrying Workers’ Compensation in New York

The New York State Workers’ Compensation Board (WCB) enforces strict compliance with workers’ compensation laws. If an employer operates without the required insurance, they can face:

1. Financial Penalties

• $2,000 per 10-day period: The Board may impose a penalty of up to $2,000 for every 10-day period the employer is found to be non-compliant.

• These fines are not capped and can accumulate quickly, even if no employees filed a claim during the uncovered period.

• Penalties apply even if the business had no injuries during the lapse. The law assumes that the risk existed regardless of claims activity.

2. Stop Work Orders

• The WCB can issue a stop work order, legally requiring the employer to cease all operations until coverage is obtained and fines are addressed.

3. Criminal Charges

• In extreme cases, operating without insurance may result in misdemeanor or felony charges, particularly if injuries occurred while the business was uninsured.

• Business owners or officers of the corporation can be held personally liable for these violations.

4. Loss of Contracts and Licenses

• Certain business licenses or state contracts can be suspended or revoked due to non-compliance, affecting future operations and reputation.

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Common Reasons for a Lapse in Coverage

While some employers may intentionally try to avoid the cost of coverage, many lapses occur due to honest mistakes, such as:

• Miscommunication with the insurance carrier or broker

• Clerical errors within the business office

• Non-renewal of policies due to incorrect paperwork

• Change of address or contact info leading to missed notices

• Belief that seasonal or part-time work does not require coverage (it usually does)

Even if the lapse was accidental, the employer is still considered non-compliant and subject to penalties.

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How to Fix an Inadvertent Lapse in Workers’ Compensation Coverage

If you discover that your business experienced an unintended lapse in coverage, it’s essential to act quickly and responsibly. Here’s what you should do:

1. Contact the Workers’ Compensation Board Immediately

Reach out to the WCB to notify them of the error as soon as possible. Be honest and transparent. Provide:

• The dates your coverage was active

• The date the lapse occurred

• A statement explaining how the lapse happened

• Documentation showing the business did not employ anyone (if applicable) during part or all of the lapse

Early communication may help reduce penalties and show that you’re acting in good faith.

2. Gather Supporting Documentation

To support your request for penalty mitigation, collect records such as:

• Payroll reports showing no active employees during the uncovered period

• A cancellation notice or correspondence from your insurer

• Copies of new or reinstated policy documents

• Internal emails or memos that demonstrate the lapse was unintentional

The more detail you provide, the more likely the Board will be to consider leniency.

3. Request a Penalty Review or Appeal

The WCB allows businesses to request a review or appeal of penalties. If you believe the fine is unfair due to a short-term, accidental lapse, submit a written request including:

• An explanation of the lapse

• A statement of good-faith efforts to maintain coverage

• A formal request for reduction or elimination of the fine

In some cases, the Board may waive or reduce the penalty—particularly for seasonal businesses that had no employees during the uncovered time.

4. Reinstate or Purchase Coverage Immediately

If you are currently uninsured, take immediate steps to purchase a valid workers’ compensation policy. This demonstrates responsibility and compliance moving forward. Many insurers will backdate coverage, depending on the situation.

5. Consult a Workers’ Compensation Specialist or Attorney

If the penalties are substantial or if you’re unsure how to respond to the Board, it’s wise to consult a professional. A specialist or attorney experienced with NY workers’ comp can help:

• Draft and submit appeals

• Communicate with the WCB on your behalf

• Gather the appropriate records

• Negotiate penalty reductions

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Final Thoughts

In New York State, failure to maintain active workers’ compensation insurance—even for a short period—can result in harsh penalties. However, when the lapse is clearly unintentional and quickly addressed, the state often shows flexibility, especially if there was no employee exposure or injury during the uncovered period.

If you’re a seasonal or part-time employer, or you have unique circumstances, make sure your policy aligns with your actual operating dates. A small error in communication or timing can result in big fines—but acting quickly and cooperatively can go a long way toward resolving the issue.

Stay informed, stay insured, and when in doubt, seek professional help to stay in compliance and protect your business.

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

On April 2, 2025, former President Donald Trump announced a new round of tariffs that are already driving up material and operational costs for contractors across the country. With profit margins tightening, it’s more important than ever to reevaluate your insurance policies—including General Liability, Umbrella Liability, Business Auto, and Workers Compensation—to make sure you’re getting the best value without sacrificing essential protection.

Here are 10 actionable ideas to help contractors navigate this financial squeeze:

1. Bundle Your Policies

Insurers often offer package discounts when you bundle multiple policies, such as General Liability and Workers Compensation. Ask your broker about combining coverages under one carrier.

2. Increase Your Deductibles

Raising your deductible can lower your premiums. If you have a solid safety record and cash reserves to cover small losses, this can be a smart way to cut costs without losing coverage.

3. Reassess Payroll and Class Codes

Make sure your Workers Compensation policy accurately reflects your team’s job duties. Misclassified employees can drive up premiums. Adjusting codes to better fit the work being done can result in savings.

4. Review Subcontractor Agreements

Ensure your subcontractors carry their own valid insurance and name you as an additional insured. This can help limit your liability and reduce claims against your own policy.

5. Shop Around at Renewal

Insurance markets shift constantly. Even if you’ve been with the same carrier for years, it pays to get competitive quotes. A construction insurance specialist can do this for you.

6. Use Telematics in Business Vehicles

Installing GPS tracking and telematics devices in work vehicles helps reduce Business Auto premiums by promoting safer driving and offering usage-based insurance options.

7. Implement a Formal Safety Program

Insurers love proactive safety. Having a documented program—including safety training, toolbox talks, and proper PPE usage—can qualify you for discounts, especially on Workers Comp.

8. Reduce Claims Through Better Risk Management

Fewer claims mean lower premiums over time. Regular job site inspections, fall protection measures, and substance abuse policies are all proven ways to reduce incidents and costs.

9. Review Your Umbrella Policy Limits

Make sure your umbrella coverage is appropriate for your current operations. You may be able to adjust the limit up or down based on project size and risk exposure to better align with your budget.

10. Work with a Construction Insurance Specialist

Navigating these policies is complicated. A specialist knows the nuances of the construction industry and can find savings opportunities a general broker might miss.

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BGES Group—Your Construction Insurance Experts

If you’re a contractor in New York or the Tri-State area, BGES Group can help you protect your business while managing rising costs. We specialize in General Liability, Umbrella, Business Auto, and Workers Compensation coverage for construction businesses of all sizes.

Contact Gary Wallach

Phone: 914-806-5853

Email: bgesgroup@gmail.com

Website: www.bgesgroup.com

Let BGES Group analyze your current policies and show you how to save—without compromising the coverage you need.

Navigating the complexities of workers’ compensation can be a daunting task for contractors in the Tri-State area. With varying state regulations and evolving industry standards, understanding workers’ comp is essential. This guide aims to simplify the process, offering practical tips and insights to help contractors manage their workers’ comp review efficiently.

Understanding Workers’ Comp Basics

Before diving into the specifics, it’s crucial to grasp the basic principles of workers’ compensation. This system is designed to protect both employers and employees when a work-related injury occurs. Knowing the fundamental elements can help contractors navigate their responsibilities accurately. For instance, workers’ compensation provides financial assistance for medical expenses and a portion of lost wages to employees who suffer from work-related injuries or illnesses. In return, employees generally relinquish the right to sue their employer for negligence. This exchange creates a safety net for both parties, fostering a sense of security within the workplace. Contractors in the Tri-State area must ensure they clearly understand what constitutes a compensable injury and how to handle reporting and filing processes efficiently.

Another critical aspect of workers’ comp is coverage requirements. Employers are typically required to obtain insurance that meets specific criteria to fulfill legal obligations. It’s important to identify who is eligible for coverage under your policy. Independent contractors, for instance, might not be covered unless specified in your contract or state guidelines. Understanding these fine details will ensure you are both compliant with the law and adequately protecting everyone involved. By aligning your knowledge with the basics of workers’ compensation, you’ll establish a solid foundation for more complex topics and ensure all involved parties benefit from the arrangement.

Navigating State-Specific Regulations in the Tri-State Area

The Tri-State area, comprising New York, New Jersey, and Connecticut, presents unique regulatory challenges. Each state has distinct requirements for workers’ comp. Understanding these differences is key to maintaining compliance and ensuring proper coverage for your workers. For instance, New York’s workers’ compensation law mandates that nearly all employers have coverage, yet there are exemptions based on the number of employees and nature of the business. Meanwhile, New Jersey demands coverage even for part-time employees, emphasizing the state’s commitment to protecting its workforce. Connecticut also follows strict guidelines, with an emphasis on rapid processing of claims to provide quick relief to injured workers.

Contractors need to analyze state-specific regulations carefully to determine which rules are applicable to them. This process involves reviewing each state’s workers’ comp board guidelines, understanding differentiation in benefits, and recognizing the varying statutes of limitation for filing a claim. Furthermore, each state’s definitions of ‘employee’ and ‘employer’ may vary significantly, impacting who must legally receive coverage. This can influence how you categorize your workforce and even the types of policies you invest in. Engaging with local experts familiar with the intricacies of each state’s requirements can help simplify this process, ensuring you meet all necessary legal obligations while providing adequate coverage for your team.

Conducting Regular Workers’ Comp Reviews

Routine reviews of your workers’ comp policies can help in identifying gaps or outdated coverage. These reviews are crucial for staying up-to-date with changes in regulations and ensuring your policies adequately meet your business’s evolving needs. A comprehensive review might include examining your current claims history to identify any patterns or recurring issues. This could reveal opportunities for implementing preventive measures, such as enhanced safety training or ergonomic assessments. Additionally, reviewing the classification of your employees and the potential need for coverage expansion as your projects grow in complexity are essential steps during this assessment.

Technology also plays a vital role in streamlining this process. Many contractors are turning to digital solutions for tracking compliance and claim status changes. These platforms can provide real-time updates on regulatory shifts, helping you to adapt swiftly and avoid penalties or lapses in coverage Business Software. Incorporating tools that automate parts of the review process allows you to focus on strategic decision-making rather than administrative tasks. By prioritizing regular reviews through a mix of technology and expert consultancy, you can uphold a standard of excellence within your workers’ comp protocol, ensuring comprehensive protection.

Engaging with Workers’ Comp Experts

Consulting with experts can provide valuable insights and guidance. These professionals can help interpret complex regulations and recommend best practices tailored to your business’s specific needs. By collaborating with specialists, you gain access to up-to-date information regarding legal obligations and industry trends. They can offer critical evaluations of your current policy standing, identifying areas that could benefit from adjustments or enhancements. Additionally, experts often provide training sessions for management and staff, equipping them with the knowledge needed to handle claims efficiently and foster a safer work environment.

As a contractor, your focus should be on your projects and clients, and letting an expert manage the intricacies of workers’ comp frees up vital resources. Furthermore, partnering with a seasoned advisor can facilitate a smoother claims process, ensuring prompt settlements and minimizing disputes. Engaging with specialists is particularly beneficial when you operate across multiple states with varying laws, as they can ensure compliance on all fronts. This partnership fosters a proactive approach to risk management, aligning your business’s growth with a vision of safety and legal adherence.

Implementing Safety Programs to Reduce Claims

Proactive safety measures can lead to a reduction in workers’ comp claims, potentially lowering your premium costs. Implementing a comprehensive safety program is a practical way to protect your workforce and your bottom line. Start by conducting a thorough workplace assessment to identify potential hazards. Engage employees in this process, fostering a culture where safety is a shared responsibility. Regular training sessions and drills not only educate but also empower your team to act decisively in critical situations.

Incorporating technology can enhance the effectiveness of your safety initiatives. For example, using apps and wearable technologies that monitor and report conditions in real time can dramatically decrease the likelihood of accidents Safety Technology. Such tools facilitate prompt hazard detection and response, transforming how safety protocols are administered. Encouraging a transparent communication channel within your workforce for reporting safety concerns or near-misses also builds trust and a proactive safety culture. Investing in these programs not only helps prevent claims but also cultivates an environment where employees feel valued and protected, ultimately contributing to your business’s reputation and success.

Wrapping Up: Empowering Your Business with Knowledge

By understanding the nuances of workers’ comp policies and employing proactive strategies, Tri-State contractors can protect their businesses and employees effectively. Consistent reviews and expert consultations will ensure compliance and peace of mind.

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 – 2025 – BGES Group

For Tri-State area contractors, managing overhead costs is always top of mind. One of the biggest expenses—workers comp insurance for contractors—can feel like a financial drain, especially when you’re locked into a high, fixed monthly premium that doesn’t reflect your actual payroll activity. Fortunately, there are better ways to manage your workers’ comp that can free up cash flow and keep your coverage compliant. Two powerful alternatives—Pay-As-You-Go Workers’ Comp and Workers’ Comp Payroll Programs—can help contractors stay protected without overpaying.

Let’s explore both options and see how a specialist like BGES Group can help contractors across New York, New Jersey, and Connecticut set up smarter coverage that fits the way they work.

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Option 1: Pay-As-You-Go Workers’ Comp – Stay Flexible, Pay Only for What You Use

Traditional workers’ compensation insurance requires businesses to estimate their annual payroll and pay premiums based on that estimate. This often results in contractors overpaying up front or getting hit with large bills at audit time when actual payroll figures don’t match the estimate. Not ideal—especially for seasonal businesses or companies with fluctuating crew sizes.

Enter Pay-As-You-Go Workers’ Comp, a flexible billing option that allows you to:

• Pay premiums based on actual payroll each pay period

• Avoid large year-end audit adjustments

• Reduce the strain on cash flow by paying smaller, more accurate amounts regularly

• Easily adjust coverage as your workforce grows or shrinks

Many contractors search online for workers comp insurance for small business or affordable workers comp coverage and discover Pay-As-You-Go plans as a way to gain more control and avoid overpaying during slower months.

This option is particularly beneficial for companies that:

• Hire temporary or seasonal workers

• Subcontract certain jobs

• Deal with unpredictable work volume

With Pay-As-You-Go, your premium aligns with your payroll—nothing more, nothing less.

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Option 2: Workers’ Comp Payroll Program – One Source for Payroll and Coverage

Another increasingly popular solution is integrating your workers’ comp with your payroll service through a Workers’ Comp Payroll Program. Instead of using separate vendors for payroll and insurance, you combine them, streamlining the process and reducing the risk of errors.

Here’s how it works:

• Your payroll provider automatically calculates your workers’ comp premium based on real-time payroll numbers.

• Premiums are deducted when you run payroll—no estimating, no guesswork.

• You receive detailed reporting and avoid surprises at audit time.

Contractors often discover this option when looking for payroll integrated workers comp or workers comp programs for contractors, realizing it simplifies administrative tasks while offering accurate premium calculations.

This option works especially well for:

• Small to mid-size contractors who want to simplify operations

• Companies looking to reduce administrative overhead

• Business owners who want real-time insight into labor and insurance costs

One of the biggest advantages? Peace of mind. When everything is synced, the chances of misreporting payroll or missing a payment decrease significantly.

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Why BGES Group is the Go-To Workers’ Comp Partner for Tri-State Contractors

Choosing the right partner for your workers’ comp coverage can be the difference between saving money or losing it. That’s where BGES Group comes in. As one of the Tri-State area’s most trusted workers compensation insurance specialists, BGES Group has built its reputation by offering customized solutions for contractors of all sizes.

We work with contractors every day to set up:

• Pay-As-You-Go plans with top-tier carriers

• Integrated payroll workers comp programs with trusted payroll providers

• Audit-proof coverage with real-time tracking

• Coverage that aligns with your business structure (whether you use W2 employees or 1099 subcontractors)

Our team understands the complexities of the construction world. Whether you’re a general contractor, plumber, electrician, landscaper, or roofer, we’ll help you find a plan that protects your business, meets state requirements, and keeps costs under control.

Many of our clients come to us after searching for best workers comp insurance for contractors or Tri-State contractors workers comp help. They stay with us because we simplify the process, provide competitive pricing, and offer white-glove service.

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Ready to Rework Your Workers’ Comp Plan?

If you’re tired of paying fixed premiums that don’t reflect your actual workforce, or if you’ve been hit with unexpected audit bills, it’s time to rethink your approach. Let BGES Group show you how to take control of your coverage.

Contact BGES Group Today:

Gary Wallach

Phone: 914-806-5853

Email: bgesgroup@gmail.com

Website: www.bgesgroup.com

Whether you need help setting up Pay-As-You-Go, integrating payroll and comp, or reviewing your current policy for savings, BGES Group has your back.

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In Summary

Contractors in New York, New Jersey, and Connecticut have options when it comes to workers comp insurance. You don’t need to accept a fixed monthly premium that doesn’t reflect the ebb and flow of your job sites. With Pay-As-You-Go and Payroll Workers Comp Programs, you can:

• Save money

• Avoid audit surprises

• Simplify administration

• Get coverage that fits the way you work

And with BGES Group guiding the process, you’ll have a partner who knows the ins and outs of contractor insurance like no one else. Call us today and find out why more contractors are switching to smarter, more flexible workers’ comp coverage.

For contractors in New York, New Jersey, and Connecticut, navigating workers’ compensation can be a frustrating and expensive process. Traditional programs often lack flexibility, offer little incentive for safe work practices, and provide minimal transparency when it comes to claims management and costs. But there’s a smarter, more strategic option that many Tri-State contractors are turning to—a workers’ compensation solution built specifically to meet the needs of contractors who want control, savings, and better service.

Below, we break down the key benefits and features of this innovative program—without the jargon or fluff. Just the straight facts contractors care about most.

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1. Substantial Upfront Premium Savings

One of the most attractive features of this program is its potential to significantly reduce your upfront workers’ compensation premium. Contractors often find their initial premium to be 15% to 30% lower than traditional carriers. This can free up much-needed cash flow—especially important for businesses dealing with tight margins or seasonal fluctuations.

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2. Pay-As-You-Go Flexibility

With traditional carriers, contractors often face large lump-sum payments or rigid billing schedules that don’t reflect actual payroll or job volume. This program uses a pay-as-you-go model that allows contractors to pay based on real payroll figures. That means you only pay for what you use—no more, no less. It’s a cash-flow-friendly option that adapts as your business grows or contracts.

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3. Customized Loss Control and Safety Support

Unlike cookie-cutter policies, this program includes tailored safety consulting and loss prevention strategies specific to the construction industry. Safety experts work with you to build and improve on-site protocols, reducing injuries and claims. The better your safety record, the more you save over time.

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4. Aggressive Claims Management

One of the key ways this program stands out is in its claims handling. Rather than passively managing claims like many traditional carriers, this program proactively investigates and manages each claim to ensure legitimacy and resolution. That means fewer fraudulent claims, quicker closures, and lower long-term costs.

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5. Long-Term Cost Stability and Control

This is not a short-term fix. The program is designed to reward safe contractors over time. As you demonstrate better safety performance and claim control, you build a stronger track record—which directly impacts your future premiums. Contractors who stay in the program long-term often experience significant reductions in total workers’ comp costs.

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6. No Audits or Surprises at Year-End

One of the biggest pain points for contractors is the dreaded year-end audit, which can result in unexpected premium hikes. This program avoids that hassle. Because it’s based on real-time payroll data, you eliminate audit exposure and gain peace of mind knowing your premiums won’t suddenly spike.

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7. Coverage for Multi-State Operations

For contractors who work across New York, New Jersey, and Connecticut—or who occasionally take on projects beyond their home state—this program offers multi-state coverage under a single policy. No need to juggle multiple policies, carriers, or rates. It’s a streamlined solution built for the way you actually work.

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8. Support for Subcontractor Vetting

Subcontractor liability is a constant concern in the trades. BGES Group can help verify your subs’ insurance coverage and compliance. You can protect your company from costly claims that should have fallen on a subcontractor’s policy—not yours.

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9. Built-In Employment Practices Liability Coverage

In addition to statutory workers’ comp coverage, this program includes Employment Practices Liability Insurance (EPLI), also known as EPL insurance, which protects businesses from financial losses stemming from employment-related claims, including discrimination, wrongful termination, and harassment, by covering legal costs.

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10. Dedicated Account Manager and Personalized Service

With traditional carriers, it’s easy to feel like just a number. This program assigns you a dedicated account manager who knows your business and industry. Whether you have a question about payroll, a concern about a claim, or need help with compliance, you have a direct contact who can handle it—fast.

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11. Program Stability and Financial Strength

Backed by an A-rated carrier, this program provides the financial security you need while still delivering the flexibility you want. You can rest assured that claims will be paid promptly and your coverage will remain in force, even in volatile market conditions.

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12. Ideal for Growing Contractors

If you’re a contractor on the rise—adding new crews, expanding into new regions, or bidding on larger jobs—this program grows with you. It scales smoothly, ensuring your workers’ comp coverage remains comprehensive, compliant, and competitively priced.

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13. Excellent Fit for Safety-Minded Contractors

If you take safety seriously, this program rewards you. The safer your company, the more you stand to benefit through lower total costs. This creates a strong incentive to invest in training, equipment, and practices that keep your crews safe and your premiums down.

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14. Works for General Contractors and Subcontractors Alike

Whether you’re a GC managing multiple job sites or a subcontractor specializing in framing, electrical, plumbing, HVAC, masonry, or roofing, this program adapts to your operation. It’s specifically structured to meet the needs of hands-on trades, not just desk jobs.

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BGES Group: Your Tri-State Workers’ Compensation Experts

If you’re a contractor in New York, New Jersey, or Connecticut and you’re tired of overpriced, underperforming workers’ comp policies, it’s time to work with a specialist who understands your industry.

BGES Group is one of the Tri-State area’s most trusted workers’ compensation experts for contractors. We specialize in finding custom-fit solutions that offer the protection you need and the savings you deserve. We understand how you work, and we know how to help you keep your crew covered without killing your cash flow.

Contact BGES Group Today:

• Gary Wallach – Workers’ Comp Specialist

• Phone: 914-806-5853

• Email: bgesgroup@gmail.com

• Website: www.bgesgroup.com

Let us help you take control of your workers’ comp—so you can focus on building your business.

As of April 2, 2025, the new round of tariff announcements has taken effect—and the impact on our industry is immediate. Material prices are climbing, shipping delays are extending timelines, and overall uncertainty is rippling through the construction sector. Whether you’re a general contractor, subcontractor, or small construction business owner, it’s critical to take proactive steps over the next three months to protect both your business and your peace of mind.

Here are 10 practical ways to navigate the turbulent months ahead, keep your operations resilient, and care for yourself in the process:

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1. Review All Contracts Immediately

Make sure your contracts account for pricing fluctuations. If you haven’t already, add escalation clauses to protect against material cost surges due to tariffs. This ensures you won’t be stuck absorbing price hikes that weren’t part of the original budget.

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2. Lock in Pricing and Secure Materials Early

If possible, purchase materials now before additional tariffs raise prices further. Build relationships with local suppliers and negotiate bulk deals to avoid the uncertainty of international shipping and tariff surcharges.

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3. Communicate Clearly With Clients

Your clients may not understand the ripple effects of tariffs. Be transparent about how these changes can impact costs and timelines. A well-informed client is more likely to be patient and understanding, especially if you’ve built trust early in the process.

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4. Get Your Insurance in Order

Protect What You’ve Built With BGES Group – The Construction Insurance Experts

As uncertainty looms, your business insurance becomes more important than ever. BGES Group specializes in construction insurance for contractors throughout the Tri-State area (New York, New Jersey, and Connecticut). Whether you’re a solo operator or managing a crew of 50, we tailor coverage to your specific needs — from general liability and workers’ comp to commercial auto and umbrella policies.

Why Contractors Choose BGES Group:

• Fast, friendly service that understands the construction world

• Competitive pricing with top-rated carriers

• Real-world experience — we know what keeps you up at night

Call Gary Wallach today at 914-806-5853 or email bgesgroup@gmail.com. Let’s protect your business before the next big surprise hits.

Because one mishap without the right insurance can be more costly than any tariff.

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5. Diversify Your Supplier Base

If you’ve been relying on one or two major suppliers (especially overseas), now’s the time to diversify. Look for regional sources or even recycled and repurposed materials to buffer against long lead times and price volatility.

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6. Tighten Your Project Scheduling

Time is money—and delays can cost even more in today’s environment. Tighten your scheduling systems to avoid gaps between subcontractors, wasted time on-site, or idle equipment. Use project management software to streamline communication and coordination.

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7. Reassess Your Budget Projections

Inflation, tariffs, and increased fuel costs all combine to blow up your original numbers. Review your budgets and adjust profit margins, contingency funds, and bids accordingly. It’s better to revise now than to find yourself short on funds mid-project.

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8. Take Care of Your Crew

Rising stress levels aren’t just hitting owners—they’re affecting your workers, too. Make sure your team is supported with open communication, safe working conditions, and clear expectations. A steady crew is your greatest asset in uncertain times.

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9. Take Care of You

Running a construction business is always stressful, and the added pressure from tariffs can push you to the brink. Don’t burn out. Make time to unplug, delegate when you can, and lean on your network—whether that’s your business peers or your family. Your mental health is as vital as your financial health.

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10. Get Strategic With Technology

Use the next three months to modernize your business wherever possible. Drone inspections, estimating software, accounting platforms, and AI tools like SEONA AI (which I personally use) can help you work smarter, not harder. I get 3 to 5 calls a day using SEONA AI — imagine what it could do for you!

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Final Thoughts: It’s Not About Panic — It’s About Preparation

Tariffs may slow the industry down, but with the right tools, support, and insurance coverage, your business can weather this storm and come out stronger. Think of the next three months as a challenge—and an opportunity—to fine-tune your operation, safeguard your finances, and build your resilience.

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About BGES Group

BGES Group is a trusted construction insurance specialist serving contractors in New York, New Jersey, and Connecticut. We’re here to give you peace of mind with tailored policies, expert advice, and the kind of responsive service you’d expect from someone who actually knows the construction world.

Contact Gary Wallach today:

Phone: 914-806-5853

Email: bgesgroup@gmail.com

Website: www.bgesgroup.com

From general contractors to specialty trades, BGES Group has your back.

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Stay safe, stay sharp, and stay covered.

Your future self will thank you.

On April 2, 2025, President Donald Trump made headlines yet again—this time with a sweeping announcement that has left the construction industry bracing for impact. In a bold move to reshape America’s trade relationships, the administration revealed a new 10% across-the-board tariff on all imported goods, along with steep additional tariffs targeting over 180 countries.

Set to go into effect this month, the tariffs are being framed as a way to revive domestic manufacturing and protect American jobs. But for contractors, developers, and suppliers across the country, especially in the construction industry, the consequences could be disruptive—if not outright costly.

So, what do these tariffs really mean for your business? And what can contractors do to protect themselves in this new economic landscape? Let’s dig in.

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The True Cost of Tariffs for Construction

The construction industry is deeply reliant on imported materials. Whether it’s steel from China, aluminum from Canada, tiles from Italy, or copper wiring from Chile, these goods play a crucial role in nearly every project—large or small.

Under Trump’s new tariff regime, all of these products—and countless others—are about to become more expensive. The 10% flat tariff is just the beginning. Countries deemed to have “unfair trade practices,” or those with which the U.S. has significant trade deficits, are being hit with tariffs as high as 25% or more. That includes major trade partners like China, Germany, Mexico, and Brazil.

For the construction industry, that means:

• Material cost spikes across steel, aluminum, insulation, lumber, tiles, fixtures, and more.

• Project delays due to supply chain disruptions and sourcing challenges.

• Margin pressure as costs rise faster than bids can be adjusted.

• Tighter competition, especially for small to mid-sized contractors without purchasing leverage.

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Contractors Already Feeling the Squeeze

Contractors across the Tri-State area and beyond are already seeing price increases from suppliers trying to get ahead of the changes. Some have had to pause quoting new jobs or revise existing bids. Others are scrambling to find domestic alternatives, which are either more expensive or have long lead times.

And that’s just the beginning. As tariffs ripple through supply chains, even equipment manufacturers are warning of upcoming price hikes on tools, vehicles, and machinery.

If you’re in construction, you know this isn’t a short-term issue—it’s a full-scale challenge that could affect your business for years.

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Workers’ Compensation Insurance

Is Your Workers’ Comp Plan Costing You Too Much? Let BGES Group Help.

At BGES Group, we specialize in workers’ compensation programs built specifically for contractors. Whether you’re a general contractor, electrician, roofer, or other trade professional, we can help you save money, improve coverage, and streamline your insurance needs.

We serve the Tri-State area (NY, NJ, CT) and work with an associate who covers the entire country, so no matter where your job sites are, we’ve got your back.

If you’re unhappy with your current plan, it’s time to try one of ours.

Call Gary Wallach today at 914-806-5853 or email bgesgroup@gmail.com. Let’s build a better future together.

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What Contractors Can Do to Protect Themselves

The tariffs are here—and they may not be going away anytime soon. So how can contractors navigate this new economic terrain without losing ground?

1. Reevaluate Your Supply Chain

Now is the time to identify which of your materials are imported and determine where alternative, domestic options may exist. Even if U.S. suppliers are more expensive, they may become more reliable as tariffs on foreign goods rise.

2. Renegotiate Supplier Agreements

Talk to your vendors. Ask about price-locking, alternative sourcing, and timelines. Consider building stronger relationships with local or regional suppliers who might offer better stability than global providers.

3. Include Escalation Clauses in Contracts

If you’re not already using them, cost escalation clauses can help protect you from material price increases after a contract is signed. It’s a safeguard that could save you thousands per project.

4. Adjust Your Bidding Strategy

With costs going up, make sure your bids reflect the new economic reality. It’s better to lose a job due to price than to win a job that puts you in the red.

5. Review Your Insurance and Overhead Costs

With profit margins under pressure, every dollar counts. If your workers’ compensation plan is overpriced or not meeting your needs, that’s money you could be using to manage tariff-related increases. (That’s where BGES Group comes in!)

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Looking Ahead: Will This Get Better or Worse?

Some analysts believe that the tariffs may be used as a bargaining chip for future trade deals, meaning they might not stay in place forever. However, given the administration’s commitment to “America First” policies, contractors should prepare for these tariffs to be the new normal—at least for the foreseeable future.

There’s also the risk of international retaliation. Other countries may impose their own tariffs on American goods, which could ripple back to the construction industry in the form of restricted access to key foreign products, more shipping delays, and global price instability.

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Final Thoughts

Trump’s April 2025 tariff announcement has set the stage for a new era in American construction. While the long-term goal may be to boost domestic manufacturing, the short-term reality is rising costs, disrupted projects, and difficult decisions for contractors nationwide.

This is a moment where strategy, preparation, and smart partnerships matter more than ever. Now is the time to tighten your operations, adjust your approach, and align with professionals who can help you stay ahead—no matter what comes next.

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About BGES Group

BGES Group is one of the Tri-State area’s leading providers of workers’ compensation insurance for contractors. We understand the challenges the construction industry is facing right now—from rising costs to labor issues—and we’re here to help you save money, stay protected, and keep your projects moving forward.

If you’re not satisfied with your current workers’ comp provider, we invite you to try one of our specialized programs. We work with contractors across New York, New Jersey, and Connecticut, and thanks to our trusted associate, we can help you no matter where in the U.S. you operate.

Contact Gary Wallach today:

• Phone: 914-806-5853

• Email: bgesgroup@gmail.com

• Website: www.bgesgroup.com

The world is changing fast—but with BGES Group on your team, you don’t have to navigate it alone. Let’s build something stronger—together.

New York has one of the most challenging insurance markets for construction companies in the country, largely due to the impact of Labor Laws 240 and 241. These laws, originally intended to protect workers, have significantly increased liability costs for contractors, leading many insurance companies to exit the New York market entirely. As a result, the cost of general liability insurance has skyrocketed, making it harder for construction firms—especially small and mid-sized contractors—to stay competitive.

This article explores Labor Laws 240 and 241, their effects on liability insurance, and the growing challenges New York contractors face in securing affordable coverage.

Understanding Labor Laws 240 and 241

Labor Law 240 – The “Scaffold Law”

New York Labor Law 240, commonly known as the Scaffold Law, is one of the most contractor-unfriendly laws in the nation. It imposes absolute liability on property owners and general contractors for elevation-related injuries on construction sites. This means that if a worker falls from a height—whether from scaffolding, ladders, roofs, or any other elevated surface—the owner or general contractor is fully responsible, regardless of whether the worker was partially at fault.

Unlike most personal injury cases, where comparative negligence applies (meaning fault is shared between parties), the Scaffold Law does not allow for a worker’s negligence to be considered. Even if a worker disregards safety protocols, fails to use provided safety equipment, or was under the influence at the time of the accident, the contractor is still liable.

Labor Law 241 – Construction Site Safety

Labor Law 241 complements Labor Law 240 by setting strict safety requirements for construction, excavation, and demolition sites. Unlike the Scaffold Law, 241 allows for comparative negligence, meaning liability may be shared if a worker contributes to their own injury. However, it still imposes strict safety standards that owners and contractors must follow.

This law gives workers broad rights to sue for injuries caused by violations of specific safety codes. It also opens the door for costly litigation, with courts often ruling in favor of injured workers—even in cases where the contractor had comprehensive safety measures in place.

How These Laws Impact the New York Insurance Market

Because Labor Laws 240 and 241 increase the liability burden on contractors, they have driven significant changes in New York’s construction insurance market.

1. Insurance Companies Are Leaving New York

The absolute liability imposed by the Scaffold Law makes insuring construction projects in New York extremely risky for insurance carriers. The number of multi-million-dollar injury settlements resulting from these laws has led to major insurers pulling out of the market.

Several well-known insurance providers have stopped offering general liability coverage for contractors in New York, leaving a limited number of carriers willing to underwrite policies. Those that remain charge significantly higher premiums to offset their risk.

2. Insurance Costs Are Skyrocketing

With fewer insurance companies willing to provide coverage, competition is reduced, leading to higher premiums for contractors. New York construction firms now face some of the highest liability insurance costs in the country.

• General liability insurance for construction contractors in New York can cost 2 to 5 times more than in other states.

• Some contractors pay over $1 million per year in liability insurance premiums, particularly for high-rise or infrastructure projects.

• Many smaller contractors are forced to work without insurance or use bare-minimum policies, putting them at significant financial risk.

3. Increased Litigation and Payouts

Because of the absolute liability standard in Labor Law 240, injury claims frequently lead to massive settlements or jury awards. Trial lawyers aggressively pursue Scaffold Law cases because they know the law favors injured workers.

• A single Scaffold Law claim can exceed $10 million in damages, even in cases where the worker’s own negligence played a role.

• In 2022, a New York court awarded $24 million to a worker who fell from scaffolding, despite allegations that he failed to use the provided safety harness.

• The growing number of high-dollar settlements makes it more expensive for insurers to operate in New York, which in turn increases premiums for all contractors.

4. Limited Availability of Excess Liability Coverage

In addition to rising general liability costs, contractors are also struggling to obtain excess liability (umbrella) coverage. Many projects require $5 million to $10 million in coverage, but insurers have significantly reduced the availability of excess liability policies in New York.

• Some carriers have stopped offering umbrella coverage for construction companies altogether.

• Those that still provide coverage have raised minimum premiums and tightened underwriting requirements.

• Contractors are often forced to buy policies from multiple carriers to meet project requirements, further driving up costs.

The Impact on New York Contractors

1. Higher Costs for Public and Private Construction

Because liability insurance costs are built into project budgets, higher premiums translate into more expensive construction projects. This affects both private developers and public infrastructure projects, making it more expensive to build in New York compared to other states.

• New York taxpayers end up paying millions more for public projects due to inflated insurance costs.

• Developers are increasingly choosing to build in other states to avoid the high costs of construction liability insurance.

2. Fewer Job Opportunities for Smaller Contractors

For small and mid-sized contractors, the cost of insurance can be the difference between staying in business and shutting down. Many small construction firms cannot afford the rising premiums and are either:

• Leaving New York for other states with more contractor-friendly laws.

• Operating without adequate insurance, exposing themselves to financial ruin if an accident occurs.

• Taking on fewer projects, limiting job opportunities for workers in the construction industry.

3. Subcontractors Face Higher Hurdles

Many general contractors now require higher insurance limits from subcontractors, making it even more difficult for smaller firms to secure work. Some subcontractors are forced to take on high-risk policies with extreme exclusions, leaving them vulnerable in the event of a claim.

Potential Solutions and Reforms

While some industry leaders have pushed for Scaffold Law reform, efforts to change the law have been strongly opposed by labor unions and trial lawyers, who benefit from the current system.

Possible solutions include:

• Introducing comparative negligence to Labor Law 240, which would allow courts to consider worker negligence in injury cases.

• Creating a state-backed insurance fund to help reduce premiums for contractors struggling to find affordable coverage.

• Encouraging alternative dispute resolution (such as arbitration) to reduce the cost of litigation and settlements.

Final Thoughts

New York’s Labor Laws 240 and 241 were originally designed to protect workers, but their unintended consequences have made liability insurance nearly unaffordable for contractors. With insurance companies leaving the market, premiums skyrocketing, and fewer opportunities for small businesses, the construction industry is feeling the pressure.

Without reform, construction costs will continue to rise, driving business out of New York and putting contractors at risk. Until lawmakers take action, contractors must navigate one of the toughest insurance markets in the country, finding creative ways to stay compliant while managing costs.

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

Being a contractor in the competitive and high-risk environments of New York, New Jersey, and Connecticut requires more than just skill and hard work. To thrive, you need discipline, integrity, and smart business practices. From securing workers’ compensation insurance to managing job site safety, every decision you make impacts your success.

To help you build a strong and sustainable business, we’ve outlined the 10 Commandments Contractors Should Live By—a must-follow guide for those serious about their craft.

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1. Always Put Safety First

The number one priority on any job site should be safety. Accidents can lead to serious injuries, legal troubles, and costly delays. Ensuring compliance with OSHA regulations and providing proper safety training for your crew is essential. Invest in safety gear, conduct regular site inspections, and never cut corners when it comes to protecting lives.

2. Get Everything in Writing

A handshake agreement is never enough. Always have a clear, written contract outlining the scope of work, deadlines, payment terms, and any other critical details. This protects both you and your client from misunderstandings and legal disputes. A strong contract can be the difference between getting paid or walking away empty-handed.

3. Manage Your Finances Wisely

Many contractors struggle because they fail to manage cash flow properly. Keep track of your expenses, budget for slow seasons, and always have a financial cushion for unexpected costs. Consider working with a financial advisor to make sure your business remains profitable in the long run.

4. Don’t Skip Permits and Inspections

Skipping permits might seem like a way to save time and money, but it can backfire badly. Failing to obtain the proper approvals can lead to fines, legal trouble, and even forced demolition of completed work. Always comply with state and local regulations to keep your projects running smoothly.

5. Invest in the Right Insurance Coverage

The construction industry is full of risks, and having the right insurance coverage is non-negotiable. Whether it’s general liability insurance, workers’ compensation insurance, or bonding, you need to protect your business from potential lawsuits, accidents, and property damage. The right coverage will keep you in business even when unexpected problems arise.

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Contractors: Protect Your Business with the Best Workers’ Compensation Coverage

If you’re working as a contractor in New York, New Jersey, or Connecticut, you need affordable and reliable workers’ compensation insurance. Don’t wait until an accident happens—protect your workers and your bottom line now.

At BGES Group, we specialize in helping contractors like you secure the best workers’ comp insurance tailored to your needs. We make the process easy, ensuring you’re fully compliant with state laws and not overpaying for coverage.

Call BGES Group today at 914-806-5853 or email bgesgroup@gmail.com for a free consultation!

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6. Build Strong Relationships with Suppliers and Subcontractors

The success of your projects depends on the quality of your materials and the reliability of your team. Cultivating strong relationships with trustworthy suppliers and subcontractors ensures you get the best materials at fair prices and that work gets done on time. A solid network is invaluable in this industry.

7. Stay on Top of Industry Trends and Technology

The construction industry is evolving, with new materials, techniques, and technologies emerging all the time. Keeping up with trends such as green building practices, construction management software, and prefabrication can give you a competitive edge. Staying ahead of the curve helps you offer better solutions to clients and work more efficiently.

8. Price Your Work Fairly—But Competitively

Underpricing to win jobs can lead to financial disaster, while overpricing can drive customers away. Research market rates in New York, New Jersey, and Connecticut, factor in labor, materials, and overhead costs, and price your services accordingly. Don’t be afraid to charge what you’re worth, but always provide value that justifies your pricing.

9. Deliver Quality Work Every Time

Your reputation is everything. One bad job can ruin years of hard work building your name in the industry. Always strive for excellence, meet deadlines, and exceed client expectations. Happy clients lead to repeat business and referrals, which are the lifeblood of a successful contracting business.

10. Market Your Business Like a Pro

Word-of-mouth referrals are great, but in today’s digital world, you need more than that to grow. Use SEO-optimized websites, social media, and platforms like Google My Business to attract new clients. Contractors who invest in online marketing get more leads and stand out from the competition. If you don’t have time for marketing, consider hiring a professional to handle it for you.

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BGES Group: Your Trusted Partner for Workers’ Compensation Insurance

At BGES Group, we specialize in providing contractors with the best workers’ compensation insurance in New York, New Jersey, and Connecticut. Whether you’re a small contractor or running a large operation, we ensure you get the most competitive rates and the best coverage to protect your business.

• Gary Wallach is your go-to expert, ready to assist you with all your workers’ compensation needs.

• Phone: 914-806-5853

• Email: bgesgroup@gmail.com

• Website: www.bgesgroup.com

Don’t take risks with your business—contact BGES Group today and secure the coverage you need to work with confidence!

Workers’ compensation insurance is essential for protecting your business and employees. However, many business owners in New York, New Jersey, and Connecticut make costly mistakes that can lead to higher premiums, legal issues, and unnecessary headaches. To help you navigate this complex area, here are five critical do’s and don’ts when it comes to workers’ compensation insurance.

5 Do’s for Workers’ Compensation Insurance

1. DO Ensure Proper Employee Classification

Misclassifying employees can lead to audits, fines, and increased premiums. Make sure each worker is classified correctly according to their job duties.

2. DO Report Injuries Promptly

Delaying injury reports can raise red flags with your insurer and lead to claim denials or increased costs. Always report workplace injuries as soon as possible.

3. DO Implement a Return-to-Work Program

Having a structured return-to-work program helps injured employees transition back to their jobs faster, reducing claim costs and improving workplace morale.

4. DO Work With a Workers’ Compensation Specialist

A knowledgeable specialist can help you find the best coverage, reduce costs, and ensure compliance with state regulations.

5. DO Regularly Review Your Policy

Your business evolves, and so should your workers’ compensation coverage. Conduct annual policy reviews to ensure you have adequate protection at the best possible rate.

5 Don’ts for Workers’ Compensation Insurance

1. DON’T Assume You’re Overpaying Without Reviewing Your Policy

Many business owners think their premiums are set in stone. A workers’ compensation specialist can often uncover savings you didn’t know existed.

2. DON’T Ignore Safety Training

A safe workplace reduces claims, keeps employees healthy, and can lead to lower premiums. Invest in regular safety training to prevent workplace injuries.

3. DON’T Let Claims Go Unmanaged

Failing to monitor claims can result in unnecessary payouts and premium hikes. Stay involved in the claims process to ensure fair and accurate outcomes.

4. DON’T Forget About Subcontractors

If you use subcontractors, verify that they have their own workers’ compensation coverage. Otherwise, your business could be held liable for their injuries.

5. DON’T Navigate the System Alone

Workers’ compensation laws vary by state and are complex. A trusted specialist can help you stay compliant and avoid costly mistakes.

Why BGES Group is Your Go-To Workers’ Compensation Specialist in the Tri-State Area

Navigating workers’ compensation insurance can be overwhelming, but you don’t have to do it alone. BGES Group specializes in helping business owners in New York, New Jersey, and Connecticut secure the best workers’ compensation coverage while reducing costs.

With decades of experience, BGES Group ensures that your business is compliant, properly classified, and not overpaying for coverage. Whether you need help with risk management, premium reductions, or handling claims, BGES Group is the expert you can trust.

Contact BGES Group Today!

For a free consultation, reach out to:

📞 Gary Wallach – (914) 806-5853

📧 bgesgroup@gmail.com

🌎 www.bgesgroup.com

Don’t let workers’ compensation insurance become a financial burden—let BGES Group help you get the right coverage at the best price!