In the world of New York construction, few laws carry more weight—or more financial risk—than New York Labor Law §240, commonly known as the “Scaffold Law.” While many contractors have heard of it, far fewer truly understand how devastating its impact can be on their business. Misunderstanding this law is one of the most expensive mistakes a contractor, subcontractor, or property owner can make.

At its core, Labor Law §240 was designed to protect workers from gravity-related injuries, such as falls from heights or injuries caused by falling objects. On its face, that seems reasonable. But the way the law is applied in New York courts is what makes it uniquely dangerous from a liability and insurance standpoint.

Absolute Liability: The Game Changer

Unlike most liability laws, Labor Law §240 imposes what is known as absolute liability on owners and general contractors. This means that if a worker is injured due to a gravity-related hazard, the owner or general contractor can be held fully liable—regardless of whether they were actually negligent.

Let that sink in.

Even if:

• The contractor provided proper safety equipment
• The worker was trained
• The accident was partially or entirely the worker’s fault

…the owner and/or general contractor can still be found 100% liable under §240.

This is a major departure from standard negligence principles, where fault is typically shared. In most other states, comparative negligence would apply, reducing damages based on the injured party’s responsibility. In New York, under §240, that defense is extremely limited.

The Types of Claims That Trigger §240

Labor Law §240 applies specifically to gravity-related risks. Some of the most common claim scenarios include:

• Falls from ladders or scaffolds
• Falls from roofs or elevated surfaces
• Injuries from collapsing structures
• Being struck by falling tools, materials, or debris

What makes these cases especially costly is not just the severity of the injuries—but the legal framework that virtually guarantees recovery for the injured worker if a violation is found.

Why These Claims Become So Expensive

The financial exposure tied to §240 claims is enormous. Serious construction injuries often involve:

• Traumatic brain injuries
• Spinal cord injuries
• Permanent disability
• Lost wages over a lifetime

When you combine these damages with absolute liability, settlements and verdicts frequently reach into the millions—and sometimes tens of millions—of dollars.

Defense costs alone can be staggering. Even when a case is defensible on the facts, the legal burden created by §240 makes it extremely difficult to win outright. As a result, many cases are settled simply to control risk.

The Insurance Problem: Coverage Isn’t Always Enough

Many contractors assume that having a Commercial General Liability (CGL) policy means they are protected. Unfortunately, that is not always the case.

Here’s where things get complicated:

• Policy limits may be inadequate for large §240 losses
• Exclusions and endorsements may restrict coverage
• Deductibles or self-insured retentions (SIRs) can be substantial
• Umbrella policies may not follow form as expected

In addition, the structure of construction contracts often pushes liability downstream—creating a complex web of insurance obligations between owners, general contractors, and subcontractors.

The Role of Risk Transfer

Because of the severity of Labor Law §240 exposure, risk transfer becomes critical. This is where many contractors either protect themselves—or unknowingly expose themselves.

Effective risk transfer involves two key components:

1. Contractual Indemnification

A properly drafted indemnification agreement requires subcontractors to assume responsibility for certain claims, including those arising from their work. However, these agreements must comply with New York’s anti-indemnity statutes and be carefully worded to be enforceable.

2. Additional Insured Coverage

Requiring subcontractors to name the general contractor and owner as additional insureds on their liability policies is essential. But not all additional insured endorsements are created equal.

Key issues include:

• Whether coverage applies to ongoing and completed operations
• Whether coverage is primary and non-contributory
• Whether the policy actually responds to Labor Law claims

Too often, contractors rely on certificates of insurance without verifying the actual policy language—only to discover gaps after a claim occurs.

The Subcontractor Trap

One of the biggest exposures under §240 comes from subcontractors. If a subcontractor’s employee is injured, that employee typically cannot sue their employer due to workers’ compensation laws. However, they can—and often do—sue the owner and general contractor under Labor Law §240.

From there, the claim often comes full circle:

• The owner/GC is held liable under §240
• They seek indemnification from the subcontractor
• The subcontractor’s insurance is triggered

If the subcontractor does not have proper coverage, or if the risk transfer mechanisms are flawed, the financial burden can fall back on the general contractor—or even their own insurance program.

Real-World Consequences

Contractors across New York have faced:

• Policy cancellations following large losses
• Skyrocketing insurance premiums
• Difficulty obtaining umbrella coverage
• Increased scrutiny from carriers

In some cases, a single §240 claim has put companies out of business.

This is not theoretical risk—it is a daily reality in the New York construction market.

How Contractors Can Protect Themselves

While Labor Law §240 cannot be avoided, its impact can be managed with the right strategy.

Key steps include:

• Review all contracts carefully to ensure proper indemnification language
• Standardize subcontractor insurance requirements
• Verify additional insured endorsements—not just certificates
• Maintain adequate liability and umbrella limits
• Work with brokers who specialize in construction risk
• Implement strong safety protocols and documentation practices

Just as important is understanding that insurance is not just a commodity—it is a critical component of your overall risk management strategy.

Final Thoughts

Labor Law §240 remains one of the most powerful—and controversial—laws affecting the construction industry in New York. While its intent is to protect workers, its application creates significant financial exposure for contractors, owners, and insurers alike.

Understanding how this law works, and more importantly how it impacts your insurance program, is essential to protecting your business. The difference between being properly structured and improperly exposed can mean the difference between surviving a claim—or not.

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BGES Group is a leading Construction Insurance specialist serving New York, New Jersey, and Connecticut. We represent over 25 top-rated insurance carriers, providing access to the best general liability and umbrella liability programs available. Our comprehensive coverage options include property, builders’ risk, inland marine, general liability, umbrella liability, commercial auto, bid and performance bonds, workers’ compensation, New York State disability, and group health. Beyond offering policies, we pride ourselves on being highly accessible—by call, text, or email—even on weekends—so you always have a trusted partner to help you navigate any insurance challenge.

We are also Workers’ Compensation specialists for tri-state business owners. Whether you are dealing with high premiums, policy cancellations, difficulty obtaining coverage due to losses, audit disputes, or payroll misclassification issues, we can help. We offer specialized programs for industries including auto services, contractors (especially in New York), limousine services, logistics companies, manufacturers, recyclers, and trucking operations. As a “Preferred Agent” for a select workers’ compensation program, we can often secure highly competitive pricing, long-term stability, and multi-state coverage for qualified clients—while also simplifying the audit process and reducing the burden of annual audits.

Contact Us:
Gary Wallach
Phone: 914-806-5853 (Direct)
Email: bgesgroup@gmail.com
Website: www.bgesgroup.com

Office Location:
216A Larchmont Acres West
Larchmont, NY 10538

In New York construction, few issues create more financial damage than misunderstanding additional insured requirements.

Many contractors believe that having liability insurance and providing a certificate is enough. It’s not.

Under New York Labor Law 240, New York Labor Law 241, and New York Labor Law 200, contractors are routinely pulled into lawsuits—even when they did nothing wrong.

And when additional insured coverage isn’t set up properly, that exposure can turn into a six- or seven-figure loss.

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What “Additional Insured” Really Means

Being named as an additional insured allows another company’s insurance policy to protect you for claims arising out of their work.

Example:

• A general contractor hires a subcontractor
• The subcontractor agrees to add the GC as additional insured
• If an accident occurs, the subcontractor’s policy may defend the GC

This is the foundation of risk transfer in construction—but it only works if done correctly.

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⚠️ Certificates of Insurance Are NOT Coverage

This is one of the biggest (and most expensive) misconceptions in construction.

A certificate of insurance:

• Only shows a policy existed on the date issued
• Does NOT guarantee coverage

It does not confirm:

• Additional insured status is properly added
• The correct endorsement is in place
• Coverage applies to the specific job
• The policy will respond to a Labor Law claim

👉 Claims are paid based on policy wording—not certificates

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Why This Matters Under New York Labor Law

New York Labor Law allows injured workers to sue parties beyond their employer, including:

• Property owners
• General contractors
• Construction managers
• Subcontractors

Under New York Labor Law 240, owners and general contractors can be held liable for gravity-related injuries—even without negligence.

That’s why contracts require downstream parties to provide additional insured protection upstream.

If that protection fails?

👉 The subcontractor often becomes the financial target.

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🚧 The Most Common (and Costly) Mistakes

1. Not reading the contract Insurance requirements are often more demanding than standard policies.

2. Using the wrong endorsement

• Ongoing operations only ≠ full protection
• Completed operations coverage is often required

3. Missing required parties Owners, GCs, construction managers, lenders, and others may all need to be included.

4. Ignoring policy exclusions Height work, residential work, or trade-specific exclusions can void coverage.

5. Fixing it too late If coverage isn’t correct before work starts, it’s usually too late.

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How Claims Actually Play Out

A worker falls from a ladder.

• Workers’ comp covers the injury
• The worker sues the GC and owner under New York Labor Law 240
• The GC tenders the claim to the subcontractor

If the subcontractor’s policy isn’t written correctly:

👉 The claim may be denied

Now the subcontractor could be responsible for:

• Legal defense
• Settlements
• Judgments

This is how a simple mistake becomes a million-dollar problem.

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Smart Contractors Do This BEFORE Signing

Before agreeing to any contract:

• Confirm your policy allows required endorsements
• Make sure limits meet contract requirements
• Verify Labor Law exposure is covered
• Ensure all parties can be added as additional insured

If something doesn’t work—negotiate it upfront.

Signing first and fixing later is one of the biggest causes of uncovered claims.

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Why Your Broker Matters

New York construction insurance is highly specialized.

You need a broker who understands:

• Labor Law exposure
• Risk transfer strategy
• Additional insured wording
• Contract review
• High-risk trades

Because one mistake can cost more than your entire premium.

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How BGES Group Helps

At BGES Group, we specialize in construction insurance for contractors across New York, New Jersey, and Connecticut.

We help:

• Review contracts before you sign
• Structure proper additional insured coverage
• Secure compliant liability policies
• Provide workers’ compensation for all trades

Most contractors call after there’s a problem.

Our goal is to make sure that problem never happens.

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Contact

Gary Wallach 📞 914-806-5853 📧 bgesgroup@gmail.com 🌐 www.bgesgroup.com

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Protect your business before the claim happens — not after.

For contractors and business owners across New York, New Jersey, and Connecticut, few issues create more confusion—and more financial risk—than the distinction between independent contractors and employees. Many business owners assume that issuing a 1099 instead of a W-2 automatically removes their responsibility for Workers’ Compensation coverage. Unfortunately, that assumption is one of the most expensive mistakes you can make.

Misclassifying workers doesn’t just create paperwork problems—it can lead to denied claims, massive audit charges, policy cancellations, and even legal penalties. Understanding how Workers’ Compensation laws treat independent contractors is critical if you want to protect your business and avoid costly surprises.

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The Misconception: “They’re 1099, So I’m Not Responsible”

Let’s start with the most common misunderstanding: if someone is paid as an independent contractor, they are not your responsibility.

From an insurance and legal standpoint, that is often not true.

Workers’ Compensation laws—especially in New York—focus less on how you pay someone and more on the nature of the working relationship. If you control how, when, and where the work is performed, there’s a strong chance that worker will be considered your employee, regardless of whether you issue them a 1099.

This means that if a “1099 contractor” gets injured on your job site, the state or your insurance carrier may determine that they were actually your employee all along. And when that happens, the financial consequences can be severe.

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How States Determine Employee Status

Each state has its own criteria, but most look at similar factors when determining whether someone is truly an independent contractor:

• Control: Do you dictate how the work is performed, or just the final result?
• Tools and Equipment: Who provides the materials and tools?
• Exclusivity: Does the worker perform services for multiple companies, or just you?
• Payment Structure: Are they paid per project or on a regular schedule like an employee?
• Supervision: Are they working independently or under your direct oversight?

In construction, it’s especially difficult to justify independent contractor status because the work is often closely supervised and integrated into your overall project.

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Real-World Scenario: The Costly Claim

Imagine this: you hire a subcontractor to perform drywall installation. He doesn’t have his own Workers’ Compensation policy, but he agrees to work under a 1099 arrangement. Everything seems fine—until he falls from a ladder and suffers a serious injury.

He files a claim.

At that point, the insurance carrier investigates and determines:

• He worked exclusively for you
• You provided the materials
• You supervised the job

Result? He’s classified as your employee.

Now you’re facing:

• A Workers’ Compensation claim charged against your policy
• Increased premiums due to the loss
• Potential penalties for uninsured exposure if he wasn’t included in payroll
• A possible audit adjustment adding his wages retroactively

What started as a cost-saving decision quickly turns into a financial nightmare.

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The Audit Trap

Even if no one gets injured, misclassifying workers can come back to haunt you during a Workers’ Compensation audit.

Insurance carriers routinely review:

• Payroll records
• 1099 payments
• Certificates of insurance from subcontractors

If you cannot provide valid certificates of insurance for your independent contractors, the auditor will often include their payments as payroll under your policy.

This means you could be charged premium on money you already paid out—sometimes going back multiple years.

For contractors running tight margins, these surprise audit bills can be devastating.

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Certificates of Insurance Are Not Optional

One of the most important protections you have is collecting proper documentation from anyone you classify as an independent contractor.

At a minimum, you should always obtain:

• A valid Workers’ Compensation Certificate of Insurance
• A General Liability Certificate of Insurance

And don’t just collect them—verify them. Make sure:

• The policy is active
• The coverage matches the work being performed
• The policy belongs to the actual business entity doing the work

If a subcontractor cannot provide a Workers’ Compensation certificate, you should assume you are responsible for covering them.

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The Legal and Financial Consequences

Misclassification isn’t just an insurance issue—it can also trigger regulatory action.

Potential consequences include:

• State fines and penalties
• Stop-work orders
• Liability for medical expenses and lost wages
• Increased scrutiny from insurance carriers
• Difficulty obtaining coverage in the future

In New York especially, enforcement is aggressive. The state actively investigates employers suspected of avoiding Workers’ Compensation obligations, and the penalties can be significant.

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Risk Transfer Strategies That Actually Work

The good news is that there are clear, practical steps you can take to protect your business:

1. Require Certificates Before Work Begins Never allow a subcontractor on-site without verified insurance.

2. Use Written Agreements Contracts should clearly define responsibilities, including insurance requirements and indemnification language.

3. Work With Legitimate Subcontractors Avoid individuals who operate without proper business structure or insurance coverage.

4. Maintain Organized Records Keep all certificates, agreements, and payment records easily accessible in case of an audit.

5. Review Your Policy Regularly Make sure your Workers’ Compensation policy properly reflects your operations and risk exposure.

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The Bottom Line

Trying to save money by classifying workers as independent contractors instead of employees is a gamble that rarely pays off. In today’s regulatory environment—especially in the construction industry—the risk far outweighs the reward.

The reality is simple: if a worker looks like your employee, acts like your employee, and works under your direction, there’s a strong chance the state and your insurance carrier will treat them as your employee.

And when something goes wrong, it’s your business that will be held responsible.

Taking the time to properly classify workers, collect documentation, and implement risk transfer strategies isn’t just good practice—it’s essential for protecting your company’s financial future.

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BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 25+ 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 contact us:

Call: Gary Wallach

Phone #: 914-806-5853 (Direct Line)

Email: bgesgroup@gmail.com

Website: www.bgesgroup.com

BGES Group is located at 216A Larchmont Acres West, Larchmont, NY 10538

If you are a contractor working in New York, there is one law that can create more financial damage than almost anything else on a job site. That law is

New York Labor Law 240 commonly known as the Scaffold Law.

Many contractors believe that if they carry workers’ compensation and general liability insurance, they are protected. Unfortunately, that is not always true in New York. Labor Law 240 is one of the strictest construction laws in the country, and it can make contractors, subcontractors, property owners, and general contractors responsible for injuries even when the worker caused the accident.

Understanding how this law works is critical for anyone working in construction, renovation, demolition, roofing, drywall, concrete, or any trade where work is performed at heights.

⸻

What Is New York Labor Law 240?

Labor Law 240 applies to accidents involving gravity-related risks. This includes situations where a worker falls from a height or is struck by a falling object.

Common examples include:

• Falling from a ladder

• Falling from scaffolding

• Falling from a roof

• Falling from a lift

• Being hit by falling materials

• Improperly secured equipment

• Unsafe work platforms

Under this law, the responsibility for safety does not fall only on the worker. Instead, the law places responsibility on:

• Property owners

• General contractors

• Subcontractors

• Construction managers

If proper safety devices were not provided, those parties can be held liable even if the worker made a mistake.

⸻

Why Labor Law 240 Is So Dangerous for Contractors

Unlike many other states, New York applies what is called absolute liability under Labor Law 240.

This means that if a worker is injured in a gravity-related accident, the contractor or owner may be responsible even if:

• The worker ignored instructions

• The worker used equipment incorrectly

• The worker was partially at fault

• The accident happened very quickly

• Safety rules were posted

Courts often rule that if proper protection was not in place, the contractor can still be liable.

Because of this, one ladder accident can turn into a lawsuit worth hundreds of thousands or even millions of dollars.

⸻

Workers’ Compensation Does NOT Stop Labor Law Lawsuits

Many contractors believe that workers’ compensation protects them from lawsuits. That is only partially true.

Workers’ compensation usually prevents the employee from suing their own employer directly, but under Labor Law 240 the worker can still sue:

• The property owner

• The general contractor

• Other subcontractors

• Construction managers

Once that lawsuit starts, the general contractor or owner may bring the subcontractor into the case through indemnification clauses in the contract.

This means a contractor who thought they were protected by workers’ compensation can suddenly be facing a major liability claim.

⸻

Real Job Site Situations That Trigger Labor Law 240

Here are real situations that commonly lead to claims:

• A painter falls off a ladder while doing touch-up work

• A roofer slips while installing shingles

• A drywall worker falls from a scaffold

• A laborer is hit by falling debris

• A worker falls through an opening

• A lift tips over

• Materials fall from above

Even small jobs can lead to big lawsuits. Labor Law 240 does not only apply to large construction projects. It can apply to residential, commercial, and renovation work.

⸻

Why Insurance Must Be Structured Correctly

Because of Labor Law 240, contractors in New York must have the right insurance structure, not just a policy.

Important coverages may include:

• Workers’ Compensation

• General Liability with proper limits

• Excess / Umbrella Liability

• Additional insured endorsements

• Primary and non-contributory wording

• Contractual liability coverage

• Waiver of subrogation when required

Many contractors buy insurance based only on price, not realizing their policy may not respond properly in a Labor Law claim.

In New York construction, the difference between the right policy and the wrong policy can mean the difference between staying in business or losing everything.

⸻

Contracts Make the Risk Even Bigger

Most construction contracts today contain strong indemnification clauses.

These clauses often say the subcontractor must defend and indemnify the general contractor or owner if an accident happens.

That means even if the subcontractor did not cause the accident, they may still be responsible for paying legal costs or damages.

This is why it is critical to review contracts before signing them and to make sure your insurance matches what the contract requires.

Too many contractors sign agreements without understanding the exposure they are taking on.

⸻

Why New York Is Different From Other States

Many contractors who come from other states are shocked when they work in New York.

In most states:

• Fault matters

• Workers cannot easily sue third parties

• Liability is more limited

In New York, Labor Law 240 makes construction much more risky.

That is why insurance companies are very strict when insuring New York contractors, and why gaps in coverage or incorrect policies can create serious problems.

⸻

How BGES Group Helps New York Contractors Protect Themselves

At BGES Group, we specialize in helping contractors understand and protect themselves from the risks created by New York labor laws, including Labor Law 240.

We work with contractors in:

• Construction

• Drywall

• Roofing

• Demolition

• Concrete

• Carpentry

• Mechanical trades

• All subcontractor classifications

We help make sure your insurance is structured correctly so that if an accident happens, you are not left exposed.

We also help review contracts, check coverage requirements, and make sure your policies meet what general contractors and property owners require.

Many contractors come to us after a problem starts. Our goal is to help you avoid the problem before it happens.

If you are working in New York, you cannot afford to guess when it comes to Labor Law coverage.

Contact BGES Group

Gary Wallach

📞 914-806-5853

📧 bgesgroup@gmail.com

🌐 www.bgesgroup.com

Protect your business before the accident happens. In New York construction, one fall can change everything.

If you’re a contractor working in New York, you’ve likely heard the term “Action Over Claim” tossed around by insurance brokers, attorneys, or project owners. But many contractors don’t fully understand what it means—until it becomes a serious and expensive problem. In a state known for its strict labor laws and high litigation rates, Action Over claims can significantly impact your business, your insurance costs, and even your ability to win future jobs.

Let’s break down what Action Over claims are, why they matter, and how they can affect your operation as a New York contractor.

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What Is an “Action Over” Claim?

An Action Over claim arises when an injured worker sues a third party (usually a property owner or general contractor), and that third party then “actions over” against the injured worker’s employer—typically a subcontractor—to recover damages.

Here’s the key point: Even though workers’ compensation laws generally prevent employees from suing their own employer directly, New York’s Labor Law creates exceptions that allow other parties to bring the employer back into the lawsuit.

This is most common under New York Labor Law Sections 200, 240(1), and 241(6)—especially Labor Law 240, often referred to as the “Scaffold Law,” which imposes absolute liability on owners and general contractors for gravity-related injuries.

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Why Action Over Claims Are a Big Deal

For contractors, Action Over claims can be devastating for several reasons:

• Circumvents Workers’ Comp Protection: Normally, workers’ compensation is your exclusive remedy. But Action Over claims reopen liability exposure.
• Triggers General Liability Policies: These claims often fall under your General Liability (GL) or Umbrella policies, not Workers’ Comp.
• Drives Up Insurance Costs: Carriers view Action Over exposure as high risk, especially in New York.
• Contractual Risk Transfer: Many contracts require subcontractors to indemnify owners and GCs, increasing your exposure even further.

In short, even if you did nothing wrong, you can still be pulled into a lawsuit and face substantial financial consequences.

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How Action Over Claims Typically Work

1. An employee of a subcontractor is injured on a job site.
2. The employee collects Workers’ Compensation benefits from their employer.
3. The employee sues the property owner and/or general contractor.
4. The owner or GC files a third-party lawsuit against the subcontractor (the injured worker’s employer).
5. The subcontractor is now back in the case—this is the “Action Over.”

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Three Real-World Examples

Example 1: The Falling Worker

A roofing subcontractor’s employee falls from a ladder while working on a commercial building in Manhattan. The worker suffers serious injuries and collects Workers’ Compensation.

The worker then sues the building owner and general contractor under Labor Law 240(1). Because of the Scaffold Law, the owner and GC are held strictly liable—even if they weren’t negligent.

The GC then files an Action Over claim against the roofing subcontractor, alleging:

• Failure to provide proper safety equipment
• Breach of contract (indemnification clause)

Result: The subcontractor is pulled into the lawsuit and their General Liability and Umbrella policies are triggered, potentially leading to a large payout.

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Example 2: The Improper Safety Setup

An electrical subcontractor’s employee is injured when scaffolding collapses. The employee files for Workers’ Compensation and then sues the general contractor and property owner.

The general contractor claims that the subcontractor:

• Improperly assembled the scaffold
• Failed to follow safety protocols

They initiate an Action Over claim to shift liability.

Result: Even though the employee cannot sue their employer directly, the subcontractor is now defending a third-party claim and may be responsible for damages, legal fees, and indemnification obligations.

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Example 3: The Multi-Trade Job Site Injury

On a large construction site in Brooklyn, a laborer working for a masonry subcontractor trips over debris left by another trade and suffers a serious injury.

The worker sues the owner and general contractor. The general contractor then brings Action Over claims against multiple subcontractors, including the injured worker’s employer, arguing:

• Poor site safety coordination
• Failure to maintain a clean work area

Result: Multiple subcontractors get pulled into litigation, even those indirectly involved. Insurance policies across several trades are triggered, creating a complex and costly legal battle.

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How to Protect Your Business

Action Over claims are difficult to eliminate entirely in New York, but there are ways to manage and reduce your exposure:

1. Strong Contracts

Make sure your contracts are carefully reviewed. Pay close attention to:

• Indemnification clauses
• Additional insured requirements
• Scope of work definitions

Poorly written contracts can dramatically increase your liability.

2. Proper Insurance Coverage

Ensure you have:

• Adequate General Liability limits
• Sufficient Umbrella/Excess coverage
• Coverage that does NOT exclude Action Over claims

Some carriers specifically limit or exclude this exposure—this is critical to review.

3. Risk Transfer

Always require your subcontractors to:

• Name you as an Additional Insured
• Provide proper certificates of insurance
• Carry adequate limits

Risk transfer is one of your strongest defenses.

4. Safety Programs

A strong safety culture can reduce the likelihood of accidents and claims:

• Regular safety meetings
• Proper equipment training
• Site inspections and documentation

5. Work with Specialists

New York is a unique and challenging insurance environment. Working with a broker who understands Action Over exposure is essential to structuring proper protection.

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Final Thoughts

Action Over claims are one of the most significant liability risks facing New York contractors today. They blur the line between Workers’ Compensation and General Liability, often pulling subcontractors into lawsuits they thought they were protected from.

Understanding how these claims work—and proactively managing your contracts, insurance, and job site practices—can mean the difference between a manageable incident and a major financial setback.

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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,

Contact: Gary Wallach at 914-806-5853,

Email: bgesgroup@gmail.com

Website: www.bgesgroup.com

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

If a natural disaster struck tomorrow, would your business survive—or would it scramble to recover? It’s a tough question, but one every business owner and executive needs to answer honestly. With natural catastrophes increasing in both frequency and severity, companies can no longer afford to rely on luck or last-minute planning.

Disaster preparedness is not just about reacting—it’s about building resilience into the core of your business. Whether you’re running a construction firm, logistics company, or professional service operation, having a clear and actionable recovery plan can mean the difference between temporary disruption and permanent closure.

Here’s a comprehensive disaster recovery checklist designed to help you safeguard your business, your people, and your future.

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Start with a Written Plan

Every business should have a formal disaster preparation and recovery plan. This document should clearly outline procedures, responsibilities, and contingencies. It’s critical that this plan exists in both digital and physical formats.

Keep hard copies in your office and distribute electronic versions to employees. If your building becomes inaccessible due to fire, flood, or structural damage, your team must still be able to access the plan remotely.

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Prepare Emergency Supplies

In the immediate aftermath of a disaster, access to basic supplies can make a significant difference. Ensure your workplace is equipped with first aid kits, flashlights, batteries, bottled water, and other essential emergency items.

Regularly inventory and replenish these supplies so they are always ready when needed.

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Back Up Your Data—Offsite

Your data is one of your most valuable assets. If your servers are destroyed in a fire or flood, could your business continue operating?

Daily backups to a secure offsite location or cloud-based system are essential. This ensures that even if your physical infrastructure is compromised, your operational data remains intact and accessible.

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Establish an Alternate Work Location

If your office becomes unusable, your employees need to know exactly where to go. Designate an alternate meeting or work site in advance. This could be a secondary office, shared workspace, or temporary leased facility.

Managers should maintain updated employee contact lists and be ready to coordinate operations quickly. Planning ahead can significantly reduce downtime and confusion.

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Invest in a Generator

Power outages are common during disasters, and waiting until one occurs to purchase a generator is a mistake. Demand spikes immediately after major events, making it difficult to secure equipment.

Ensure your generator has sufficient capacity to power your critical systems—whether that includes computers, servers, refrigeration, or machinery.

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Assign Clear Responsibilities

A disaster plan is only effective if people know their roles. Assign specific responsibilities to team members in advance:

• Who will secure the premises before a storm?
• Who will deploy protective measures like shutters or sandbags?
• Who will handle cleanup and recovery efforts?

Keep in mind that some employees may be unavailable due to personal responsibilities or emergency service commitments, such as National Guard deployment. Build flexibility into your plan.

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Review Your Insurance Coverage

Insurance is a cornerstone of disaster recovery. Carefully review all policies to ensure they cover relevant risks and provide adequate limits.

Pay particular attention to flood coverage—most standard policies exclude it. If your business operates in a flood-prone area, separate coverage is essential.

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Protect Key People

Your business relies on more than just physical assets—it depends on people. A disaster could incapacitate or even result in the loss of key personnel.

Review your key-person life and disability insurance policies to ensure they provide sufficient protection. This coverage can help stabilize your business during an already challenging time.

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Consider Business Interruption Insurance

Even if your property damage is covered, what about lost income?

Business interruption insurance provides financial support during temporary closures. It can help you continue paying employees, covering expenses, and maintaining operations while you recover.

This type of coverage can be the difference between surviving a disruption and shutting down permanently.

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Develop a Public Relations Strategy

Communication is critical during a disaster. Without clear messaging, customers and partners may assume your business has closed for good.

Designate a company spokesperson and prepare a communication plan. Share updates with clients, vendors, and the media. If you relocate temporarily, make sure your audience knows where to find you.

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Diversify Communication Systems

Disasters often disrupt communication networks. One provider may go down while another remains operational.

Encourage employees to use different mobile carriers to reduce the risk of total communication failure. This redundancy can keep your team connected when it matters most.

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Secure Emergency Funding

Cash flow can become a major issue if your business is forced to shut down temporarily. Having access to emergency funds is crucial.

The Small Business Administration offers low-interest disaster loans to qualifying businesses. These funds can help cover operating expenses and keep your business afloat during recovery.

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Protect Critical Documents

Your tax returns, contracts, and financial records are essential for recovery and insurance claims.

Store digital copies securely online and keep physical copies in a fireproof safe or offsite deposit box. If you’re in a flood-prone area, store documents at a higher elevation or inland location.

Avoid keeping all copies in areas exposed to the same risk.

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Identify and Mitigate Risks

Every business faces unique risks based on its location, industry, and operations. Coastal businesses may prioritize hurricane preparedness, while others may focus on fire or earthquake risks.

Conduct a thorough risk assessment and tailor your disaster plan accordingly. Avoid a one-size-fits-all approach—what works for one business may not work for another.

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The Takeaway

There is no universal formula for disaster preparedness. Each business must evaluate its own vulnerabilities and develop a customized strategy.

What matters most is taking action before disaster strikes. By planning ahead, assigning responsibilities, and securing the right resources, you can protect your business, your employees, and your long-term success.

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Why Partnering with the Right Insurance Team Matters

At BGES Group, we understand the complexities of protecting businesses in today’s unpredictable environment. As construction insurance specialists serving New York, New Jersey, and Connecticut, we represent over 50 top-rated carriers and offer comprehensive coverage solutions—including property, builders’ risk, inland marine, general liability, umbrella liability, auto, workers’ compensation, and more.

Our commitment goes beyond policies. We are always available—by phone, text, or email—even on weekends—to help you navigate challenges and ensure your business stays protected.

We are also workers’ compensation specialists for Tri-State business owners. Whether you’re dealing with high rates, cancellations, audit disputes, or classification issues, we have solutions. Our preferred programs offer competitive pricing, long-term stability, and simplified audit processes.

If you want to strengthen your disaster preparedness and insurance strategy, we’re here to help.

Contact:
Gary Wallach
BGES Group
216A Larchmont Acres West
Larchmont, NY 10538
Phone: 914-806-5853
Email: bgesgroup@gmail.com
Website: http://www.bgesgroup.com

Your business is too important to leave unprotected. Plan today—so you’re ready for tomorrow.

If you are a contractor working in New York, chances are you have experienced this frustrating situation.

You finish negotiating a job.
You send in your insurance certificate.
Then suddenly the project manager, building manager, or risk manager sends it back with a long list of problems.

“Wrong additional insured wording.”
“Missing endorsement.”
“Coverage doesn’t meet contract requirements.”
“Please revise and resend.”

Now the clock is ticking. The job cannot start until the certificate is accepted. Your client is getting irritated. And when you call your insurance broker for help… they either don’t answer, don’t understand the requirements, or take two days to issue a corrected certificate.

Meanwhile the contractor down the street already has boots on the ground.

This situation happens every day to contractors across New York. And most of the time, the problem is not the contractor.

The problem is the broker.

Insurance certificates are not just administrative paperwork. In New York’s highly litigious construction environment, certificates must match the contract language and the insurance policy endorsements precisely. Building managers and risk managers review them carefully because their liability exposure is enormous.

When your broker does not understand construction risk transfer requirements, your certificate becomes a liability instead of a solution.

Unfortunately, many contractors discover too late that their broker is simply not equipped to handle construction accounts.

Let’s look at the common problems contractors run into.

The Real Problem: Brokers Who Don’t Understand Construction

Construction insurance in New York is complex. Many policies include exclusions that can completely eliminate coverage if not structured properly.

For example:

• Labor Law exclusions
• Action Over exclusions
• Employee injury exclusions
• Improper additional insured endorsements
• Incorrect primary and non-contributory wording
• Missing waiver of subrogation

If your broker does not understand how these issues affect certificates and contracts, they will struggle every time a building manager asks for revisions.

The result?

Delays, frustration, and sometimes losing the job entirely.

And when you try to get help from your broker, the experience can be even worse.

Phones go unanswered.
Emails sit for hours or days.
Certificates take forever to issue.
Nobody wants to take responsibility.

Contractors do not have time for that.

You need a broker who understands construction risk transfer and moves at the speed of the jobsite.

That is exactly where BGES Group comes in.

10 Ways BGES Group Makes Insurance Easier for Contractors

At BGES Group, we understand that contractors do not want excuses. They want results.

Here are ten ways we make your insurance life dramatically easier.

1. We Actually Answer Our Phones

It sounds simple, but it matters.

When you call BGES Group, you get a real person who answers the phone. Not voicemail. Not a ticket system. Not a call center.

When a job is on the line, waiting hours for a response is unacceptable.

2. Certificates Issued in Five Minutes or Less

Most certificates should not take hours or days.

If we already have the correct certificate holder information and contract requirements, certificates are often issued in five minutes or less.

Contractors move fast. Your broker should too.

3. Account Executives Who Know Construction

Many brokers assign inexperienced staff to handle certificates.

At BGES Group, your account executive understands construction insurance and risk transfer requirements. That means fewer mistakes and faster approvals.

4. Certificates That Actually Match the Contract

Building managers reject certificates because they do not match contract language.

We review the contract requirements and issue certificates that reflect the correct:

• Additional insured endorsements
• Primary and non-contributory wording
• Waiver of subrogation
• Completed operations coverage

This dramatically reduces rejection rates.

5. No Dealing With Anyone Who Has a Mood Disorder

Let’s be honest.

Some insurance offices are miserable places. Staff members sound annoyed when you call and treat you like you are bothering them.

At BGES Group, contractors are treated with respect. You get professionals who are calm, responsive, and solution-oriented.

You have enough stress running a construction business. You do not need attitude from your broker.

6. We Help Solve Risk Manager Problems

When building managers push back on coverage or wording, many brokers simply forward the email to you and say “see attached.”

That is not helpful.

We communicate directly with project managers, risk managers, and property management companies when needed to resolve issues quickly.

7. Real Certificate Expertise

In New York construction, certificates must reflect very specific forms such as:

• CG 20 10
• CG 20 37
• Waiver of Subrogation endorsements
• Primary and Non-Contributory wording

If your broker does not understand these forms, certificates will continue getting rejected.

We do this every day.

8. We Remarket Your Account

Too many brokers place your policy once and never revisit it again.

At BGES Group, accounts are actively remarketed when appropriate to ensure contractors have competitive pricing and proper coverage.

Insurance markets change constantly. Your broker should be paying attention.

9. A Broker Who Is a Street Fighter for Your Interests

When claims happen or underwriting becomes difficult, you need a broker who fights for your interests.

We advocate aggressively for our clients with insurance carriers.

Contractors deserve representation, not passive order-takers.

10. No Bullshit Fees

Some brokers load policies with excessive “policy fees,” “service fees,” or “administrative charges.”

At BGES Group, we believe in transparency.

No hidden surprises. No inflated fees.

Just straightforward insurance support.

Why This Matters More in New York

Contractors in New York operate in one of the most challenging insurance environments in the country.

Labor law liability exposure is enormous. Many insurance companies have left the market entirely. Those that remain often impose strict underwriting requirements.

This makes it even more important that your broker knows what they are doing.

If your insurance is structured incorrectly or your certificates are constantly rejected, it can cost you:

• Lost projects
• Payment delays
• Contract disputes
• Major liability exposure

Insurance should support your business, not slow it down.

The Bottom Line

Contractors already deal with enough challenges.

Scheduling.
Labor shortages.
Material costs.
Permits.
Inspections.
Clients demanding faster timelines.

The last thing you should have to worry about is whether your broker can issue a correct certificate of insurance.

If your certificates keep getting rejected, your broker does not answer the phone, or you feel like nobody is advocating for your business, it may be time to work with a firm that actually understands contractors.

BGES Group was built specifically to help contractors navigate New York’s complicated insurance environment without the headaches.

Because when your broker knows what they are doing, your projects move faster and your clients stay happy.

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Contact BGES Group

Gary Wallach
BGES Group

Phone: 914-806-5853
Email: bgesgroup@gmail.com
Website: www.bgesgroup.com

If your certificates keep getting rejected or your broker is not helping you solve problems, call today. A five-minute conversation could save you days of frustration on your next project.

If you are a contractor working anywhere in New York, you have probably noticed a major change in how insurance companies handle construction risk.

Before a subcontractor can begin work, contractors are now required by their insurance companies to collect several specific documents and insurance protections.

This is not just administrative paperwork.

It is a critical part of how construction liability risk is transferred.

Insurance companies today want to ensure that each subcontractor is financially responsible for their own work. Without these protections in place, a contractor’s insurance policy could end up paying for accidents that were actually caused by subcontractors.

As a result, contractors are now required to obtain several key protections from subcontractors before work begins on a jobsite.

Below are the most common requirements and why insurance companies insist on them.

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1. Insurance and Hold Harmless Agreements

The first requirement is a written subcontract agreement that includes a hold harmless or indemnification clause.

A hold harmless agreement requires the subcontractor to defend and indemnify the contractor for claims arising out of the subcontractor’s work.

For example:

If a subcontractor installs framing improperly and an injury occurs, the subcontractor agrees to defend the contractor and pay damages related to that claim.

Construction lawsuits in New York frequently name every party involved in a project. Even if the subcontractor caused the accident, the contractor will almost always be pulled into the lawsuit.

A properly written hold harmless agreement allows the contractor to transfer responsibility back to the subcontractor whose work caused the loss.

Without this provision, the contractor’s insurance company may be forced to defend and pay claims that were actually caused by someone else.

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2. Being Listed as an Additional Insured

Another key requirement is that subcontractors must list the contractor as an Additional Insured on the subcontractor’s Commercial General Liability (CGL) policy.

When a contractor is listed as an additional insured, the subcontractor’s insurance policy extends coverage to the contractor for claims arising out of the subcontractor’s work.

This is extremely important in construction accidents.

If a worker or third party is injured and the contractor is sued, being listed as an additional insured allows the contractor to tender the claim to the subcontractor’s insurance company.

That means the subcontractor’s insurer must:

• Provide legal defense • Pay settlements or judgments • Protect the contractor from financial loss

Insurance companies require this because they do not want the contractor’s policy paying claims caused by subcontractors.

Additional insured status ensures the subcontractor’s insurance responds first.

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3. Waiver of Subrogation

Another critical requirement is a Waiver of Subrogation.

Subrogation is the legal right of an insurance company to recover money from another party after paying a claim.

A waiver of subrogation changes that.

When a subcontractor provides a waiver of subrogation in favor of the contractor, it means that if the subcontractor’s insurance company pays a claim, it cannot later pursue the contractor or the contractor’s insurance company to recover those payments.

In simple terms:

If a subcontractor’s insurer pays for a loss, they waive the right to sue the contractor afterward.

Insurance companies require this provision because construction projects involve multiple insurers. Without waivers of subrogation, insurers could spend years suing each other after a claim.

The waiver helps ensure that once a claim is paid, the matter is resolved without further litigation between insurance companies.

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4. Primary and Non-Contributory Coverage

Another phrase frequently seen in subcontract agreements is Primary and Non-Contributory coverage.

This language determines which insurance policy must respond first when a claim occurs.

When a subcontractor’s policy is written on a primary and non-contributory basis, it means:

• The subcontractor’s insurance policy pays first • The contractor’s insurance policy does not contribute unless the subcontractor’s limits are exhausted

Insurance companies insist on this because they want the subcontractor’s policy to handle claims arising out of the subcontractor’s work.

Without primary coverage, both policies may have to contribute to a loss.

By requiring primary coverage, insurers ensure the contractor’s insurance policy is protected and used only as a last resort.

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5. Minimum Insurance Limits Required From Subcontractors

In addition to contractual protections, insurance companies typically require subcontractors to carry minimum liability limits.

Most contractor insurance policies require subcontractors to carry:

Commercial General Liability (CGL) Minimum limits of $1,000,000 per occurrence

Excess or Umbrella Liability Minimum limits of $1,000,000 or higher

For larger projects, contractors may require $2M, $5M, or even $10M umbrella limits.

Insurance companies require these limits because construction accidents can produce extremely large claims.

Injury lawsuits in New York can easily exceed one million dollars once legal costs, medical expenses, and settlements are involved.

If subcontractors carry insufficient limits, the contractor’s policy may be forced to cover the remaining damages.

Strong subcontractor insurance limits create a layered protection structure that protects everyone involved in the project.

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What Happens If Contractors Don’t Collect These Documents?

Many contractor insurance policies now contain Subcontractor Warranty Clauses.

These provisions require contractors to collect the documents discussed above before subcontractors begin work.

If contractors fail to do this, the consequences depend on whether the policy contains a Hard Hammer or Soft Hammer provision.

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Hard Hammer Subcontractor Requirement

A Hard Hammer Clause is the strictest policy condition.

If the contractor fails to obtain required subcontractor documentation and that subcontractor causes a loss, the insurance company may deny coverage entirely.

This means:

• No legal defense • No claim payment • The contractor becomes personally responsible for damages

Considering that serious injury lawsuits in New York can reach millions of dollars, a hard hammer clause can be financially devastating.

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Soft Hammer Subcontractor Requirement

Some policies instead contain a Soft Hammer Clause.

With a soft hammer provision, coverage is not completely denied, but the contractor is penalized financially.

Typical penalties include:

• Higher deductibles • Reduced policy limits • Shared responsibility for the loss

For example, a contractor who fails to collect subcontractor documentation may suddenly face a $50,000 or $100,000 deductible when a claim occurs.

While coverage still exists, the financial impact can still be severe.

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Why Insurance Companies Are Enforcing This More Than Ever

Construction liability losses in New York have been rising dramatically.

Several factors are driving this trend:

• High-cost construction injury lawsuits • Strict labor laws favoring injured workers • Multiple parties being sued on every project • Extremely high legal defense costs

Because of these risks, many major insurance companies have stopped writing contractor insurance altogether.

Those that remain in the market require strict risk transfer procedures involving subcontractors.

Collecting subcontractor insurance documents is now one of the most important ways contractors protect themselves.

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How BGES Group Helps Contractors Protect Their Business

Understanding subcontractor insurance requirements can be confusing and complicated.

That’s where BGES Group can help.

BGES Group specializes in insuring contractors operating in New York and understands the unique challenges contractors face in this difficult insurance market.

We help contractors:

• Obtain proper liability insurance • Understand subcontractor requirements • Structure risk transfer agreements • Avoid dangerous policy exclusions • Secure stable insurance coverage

Whether you are a general contractor or subcontractor, we help ensure your business is properly protected.

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Contact BGES Group

If you are a contractor and want expert guidance on protecting your business with the right insurance coverage, contact BGES Group today.

BGES Group Specialists in New York Contractor Insurance

📞 Gary Wallach 914-806-5853

📧 bgesgroup@gmail.com

🌐 www.bgesgroup.com

When it comes to construction insurance, the right advice can mean the difference between a protected contractor and a catastrophic uninsured loss.

BGES Group is here to help New York contractors build that protection — before the job even begins. 🔨

If you’re a contractor operating in New York today, you’ve probably noticed something unsettling happening in the insurance market.

When your general liability policy comes up for renewal, the conversation with your broker is no longer as simple as it used to be.

Rates are rising. Underwriting is tightening. And perhaps most concerning of all—there are fewer insurance companies willing to write New York contractors.

Over the past year, several well-known “Main Street” insurance companies have quietly stepped away from the New York contractor liability market. Carriers that once insured small and mid-size construction firms are now declining accounts or dramatically restricting the types of work they will cover.

Why?

Because New York remains one of the most difficult liability environments in the country. Between strict labor laws, rising claim costs, and complex construction risks, many insurance companies have decided the exposure simply isn’t worth it.

For contractors, the result is simple: less competition means higher premiums and fewer options.

That’s why every contractor should be asking themselves an important question:

“What’s my Plan B when my liability policy comes up for renewal?”

Why Waiting Until Renewal Is Risky

Too many contractors wait until 30 days before renewal to think about their insurance.

By that time, if your current insurance company decides not to renew your policy—or comes back with a major price increase—you may have very limited options.

In today’s insurance environment, underwriters often need 60–120 days to properly review contractor accounts. If there’s a gap in coverage, past claims, or certain types of work involved, the underwriting process can become even more complicated.

That’s why having a backup strategy is critical.

That’s Where BGES Group Comes In

At BGES Group, we specialize in helping New York, New Jersey, and Connecticut contractors navigate one of the most challenging insurance markets in the country.

We understand the construction industry because contractors are a core part of our business.

But just as important, we offer something many larger agencies have lost:

Old-fashioned “Mom and Pop” boutique service.

When you call BGES Group, you’re not being routed through a call center or waiting days for a response. You’re dealing with professionals who understand your business and treat your company like it matters—because it does.

Here are 10 ways BGES Group makes contractors’ lives easier.

1. Access to 50+ Insurance Companies

The contractor insurance market is shrinking. Having access to multiple carriers is more important than ever.

BGES Group represents over 30 insurance companies, including many of the best general liability and umbrella liability programs available for contractors.

2. A True Backup Plan for Your Liability Renewal

If your current carrier increases rates dramatically or decides not to renew your policy, we already have alternative markets ready to review your account.

That’s what a real Plan B looks like.

3. Specialists in New York Contractor Risks

New York construction is unique. Labor Law exposure, high claim severity, and strict insurance requirements mean you need a broker who understands these risks.

We specialize in New York contractor insurance placements.

4. Help Navigating Complex Insurance Requirements

General contractors, property managers, and developers often require complex insurance wording.

Additional insured endorsements. Primary and non-contributory wording. Waivers of subrogation.

We help make sure your policies meet contractual requirements.

5. Faster Responses When You Need Certificates

In construction, work often stops until a certificate of insurance is issued.

We understand that speed matters, and we work quickly to provide the certificates you need so projects keep moving.

6. Assistance with Claims

When a claim occurs, contractors often feel like they’re left on their own to deal with the insurance company.

We help guide you through the process and advocate on your behalf when needed.

7. Workers’ Compensation Expertise

Workers’ compensation is one of the most complicated insurance policies contractors deal with.

Misclassified payroll, incorrect job classifications, and audit disputes can lead to unexpected costs.

We help review policies and identify potential issues before they become expensive problems.

8. Help with Audit Disputes

Many contractors are surprised when their workers’ compensation audit results in a large additional premium.

If you’re in the middle of an audit dispute, we may be able to help review classifications, subcontractor documentation, and other factors affecting the audit.

9. Guidance on Coverage Contractors Often Overlook

Many contractors carry only basic liability insurance when they actually need additional coverage such as:

Builders risk Inland marine Commercial auto Umbrella liability

We help identify potential gaps that could create serious financial exposure.

10. Real People Who Are Available When You Need Them

Construction doesn’t stop at 5 PM—and neither do insurance issues.

At BGES Group, we pride ourselves on being available when our clients need us, even outside normal business hours.

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A Construction Insurance Specialist You Can Count On

BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 30+ 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.

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Workers’ Compensation Insurance Specialists for Tri-State Business Owners

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.

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Don’t Wait Until Your Renewal Is in Trouble

The New York contractor insurance market is changing quickly.

If your liability policy is coming up for renewal, now is the time to start exploring your options—not after the renewal quote arrives.

Having a Plan B could make the difference between securing the coverage your business needs or scrambling at the last minute.

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Contact BGES Group

If you want to speak with us:

Gary Wallach BGES Group 216A Larchmont Acres West Larchmont, NY 10538

📞 Phone: 914-806-5853

📧 Email: bgesgroup@gmail.com

🌐 Website: http://www.bgesgroup.com

Call, text, or email anytime to discuss your insurance needs. We’re here to help keep your construction business protected.

If you spend any time talking with construction contractors across the Tri-State area — New York, New Jersey, and Connecticut — you’ll hear the same complaint again and again.

It’s not the work. It’s not the employees. And it’s not even the premiums.

It’s the workers’ compensation audit.

For many contractors, the annual workers’ comp audit has become what they jokingly call:

“The insurance proctologist visit.”

Auditors comb through:

• Payroll records
• 1099s
• Subcontractor agreements
• Bank statements
• Tax documents

And the result is often the same:

A surprise bill months after the policy year ends.

Sometimes that bill is enormous.

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The Problem With Traditional Workers’ Comp Policies

Traditional workers’ compensation policies are typically written using estimated payroll.

That means the premium you pay during the policy term is based on projections.

After the policy expires, the insurance carrier performs an audit to determine what the payroll actually was.

If payroll turns out to be higher than estimated, the contractor receives a large additional premium bill.

For construction companies — where payroll fluctuates with projects, seasonal work, and job schedules — these audits can become a constant headache.

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Why Contractors Are Losing Patience

Construction is already one of the most regulated industries in America.

Contractors deal with:

• OSHA
• Building inspectors
• Union rules
• Strict labor laws
• Jobsite safety compliance

This is especially true in states like New York.

When unpredictable insurance audits are added on top of that, many contractors say it pushes them to the breaking point.

Here are the frustrations contractors mention most often:

• Surprise premium bills months after the policy ends • Auditors questioning subcontractors and 1099 labor • Disputes over employee classifications • Endless requests for payroll documentation • Cash flow disruptions from unexpected charges

Many contractors say the process feels less like an audit and more like a financial interrogation.

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A Growing Search for Alternatives

Because of these frustrations, more contractors are exploring alternative workers’ compensation structures.

One option that has gained traction over the past 25+ years is a payroll-based workers’ compensation program.

These programs move away from the traditional audit model and toward a pay-as-you-go payroll system.

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A Different Way to Handle Workers’ Compensation

Instead of estimating payroll for the entire year and adjusting later, payroll-based workers’ comp programs calculate premiums using actual payroll each pay period.

This model changes everything.

Premiums adjust automatically as payroll changes, eliminating many of the traditional audit surprises.

Employers pay for coverage as payroll occurs, aligning insurance cost with real business activity.

In simple terms:

No projections. No guessing. No painful year-end audit surprises.

For contractors whose payroll fluctuates with projects and seasonal work, this structure can provide much greater financial stability.

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10 Ways Payroll-Based Workers’ Comp Programs Help Contractors

Without referencing any specific provider, here are ten reasons many contractors are moving toward payroll-driven workers’ compensation systems.

1. No Traditional Annual Audits

Because premiums are calculated from real payroll each pay cycle, the dreaded year-end audit often disappears entirely.

2. Premiums Based on Actual Payroll

Contractors only pay for payroll that actually occurred — not estimates made twelve months earlier.

3. Improved Cash Flow

Instead of large deposits or surprise bills, premiums are spread throughout the year as payroll is processed.

4. Reduced Risk of Surprise Bills

Payroll-based systems dramatically reduce the risk of massive audit adjustments.

5. Automatic Premium Adjustments

When payroll increases or decreases, premiums adjust automatically.

6. Easier Budgeting

Contractors know their insurance cost at the same time payroll is processed.

7. Integrated Payroll Reporting

Many programs integrate directly with payroll systems, reducing paperwork and administrative time.

8. Enhanced Claims Management

Some programs include modern claims handling and safety resources that help reduce claim frequency.

9. Scalable for Growing Contractors

As companies grow or expand into new states, coverage can often adjust quickly without rewriting an entire policy.

10. Long-Term Market Stability

Some payroll-based workers’ comp programs have operated successfully for more than 25 years, providing an alternative to constantly shifting insurance markets.

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Why This Matters in the Tri-State Construction Market

Contractors in the New York metropolitan region face unique challenges.

New York’s construction labor laws, liability exposure, and insurance costs are among the highest in the country.

Workers’ compensation costs can be especially high for trades such as:

• Roofing
• Masonry
• Interior demolition
• Concrete work
• Exterior façade work
• Structural steel

When unpredictable audits are added on top of those already high costs, it creates serious financial pressure for small and mid-size contractors.

That’s why many contractors are now asking a simple question:

“Is there a better way to handle workers’ comp?”

For many businesses, the answer may be yes.

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The Bottom Line

Workers’ compensation is essential protection for both employers and employees.

It covers:

• Medical expenses
• Lost wages
• Workplace injury protection

But how the coverage is structured can make a huge difference.

For contractors tired of audit surprises, payroll-based workers’ compensation programs can offer a more predictable and contractor-friendly approach.

Instead of worrying about what an auditor might find a year later, contractors can focus on what they do best:

Building projects. Running crews. Growing their businesses.

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About BGES Group

BGES Group specializes in helping contractors and businesses secure the right insurance programs, including workers’ compensation solutions designed for stability and long-term success.

With extensive experience in construction insurance throughout New York, New Jersey, and Connecticut, BGES Group helps contractors navigate complex insurance markets and identify solutions that align with their business model.

If you are tired of workers’ compensation audit surprises and want to explore payroll-based programs that may simplify your insurance structure, we’re happy to have a conversation.

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Gary Wallach BGES Group

📞 914-806-5853 📧 bgesgroup@gmail.com 🌐 www.bgesgroup.com

A short conversation could help determine whether a more stable workers’ compensation program may be available for your business.