Running a construction company in New York is both rewarding and challenging. With strict labor laws, complex contractual obligations, and ever-changing insurance requirements, one wrong move can cost contractors millions of dollars. The right insurance program is not just about compliance—it’s about protecting your company, your workers, and your future.

At BGES Group, we specialize in helping New York contractors navigate this maze. Below are the 10 most important insurance questions contractors should be asking—and the answers you need to stay protected.

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1. Do I Have Adequate General Liability Limits?

In New York, construction claims—especially Labor Law 240 and 241 cases—can result in multi-million-dollar judgments. Many contractors carry only $1 million per occurrence and $2 million aggregate limits, which is often not enough. You should discuss umbrella or excess liability coverage with your broker to ensure your business has adequate protection.

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2. Am I Covered for Labor Law (Scaffold Law) Claims?

New York is unique because of its strict liability labor laws. If a worker is injured in a gravity-related fall, you could be held fully liable—even if you were not directly at fault. Not all liability policies properly address these risks. Contractors should confirm their policy specifically covers Labor Law claims, without hidden exclusions that can leave them exposed.

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3. Will My Policy Respond If My Subcontractors Aren’t Properly Insured?

This is one of the most important questions a general contractor can ask. If a subcontractor causes an accident and doesn’t carry proper coverage, your insurance company may deny the claim.

To protect yourself, every subcontractor should be required to provide:

• General liability with at least $2 million coverage

• Workers’ compensation insurance

• Additional insured status for you

• Primary & non-contributory wording

• Waiver of subrogation

Failing to enforce these requirements can leave you exposed, with your own policy refusing to respond. Always verify subcontractors’ coverage before work begins.

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4. Does My Policy Cover Completed Operations?

Completed operations coverage protects you after a job is finished. Claims can arise years later, and without this coverage you could face lawsuits without insurance backing. Contractors should check if their policy excludes completed operations or limits coverage through restrictive endorsements.

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5. Am I Compliant with Contractual Insurance Requirements?

Owners, developers, and municipalities often require contractors to carry specific coverage and endorsements. Failure to comply could void your contract or leave you uncovered if a claim arises. Contractors should review every contract with their broker to ensure insurance compliance before work begins.

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6. Do I Have Adequate Workers’ Compensation Coverage?

Workers’ compensation is mandatory in New York, but not all policies are equal. Rates vary by class code, and if you’re misclassified, you could pay significantly more—or face penalties for underreporting payroll. Additionally, you should confirm coverage extends to all states where your crews might work, especially if you border Connecticut or New Jersey.

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7. Do I Need Professional Liability or Design-Build Coverage?

If you provide any design, engineering, or consulting services—even indirectly—you could face professional liability exposures. Traditional general liability policies do not cover errors in design or professional advice. Contractors involved in design-build projects should strongly consider professional liability coverage.

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8. What Happens If I Lease Equipment or Use Rental Tools?

Many contractors assume their insurance covers rented equipment, but that’s not always the case. Specialized inland marine or equipment floater coverage may be required. Without it, damage to rented machinery could become an uninsured expense. Always verify what your policy covers before renting or leasing equipment.

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9. Am I Protected If a Claim Involves the City of New York?

The City of New York is a unique additional insured requirement. Some liability policies specifically exclude municipalities or public entities. This means that if your contract requires you to name the City as an additional insured but your policy doesn’t allow it, you could be in breach of contract and without coverage. Contractors working on city projects must ensure their policies are written correctly.

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10. Do I Have an Insurance Advisor Who Specializes in New York Construction?

Construction insurance in New York is unlike anywhere else in the country. A broker who doesn’t specialize in this area can overlook critical coverage gaps—leaving you exposed to catastrophic losses. Working with a construction-focused specialist ensures you have policies tailored to your unique risks, contracts reviewed before signing, and guidance when dealing with subcontractor compliance.

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Why These Questions Matter

Insurance is not just about having a policy—it’s about having the right policy. Too many contractors buy coverage based on price alone, only to find out later that their policy has exclusions, insufficient limits, or gaps that leave them exposed. Asking these questions before you bind coverage ensures that your business is protected against the real risks you face every day on the job site.

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BGES Group: Your New York Construction Insurance Specialists

At BGES Group, we don’t just sell insurance—we protect contractors from the unique risks of working in New York. With decades of experience in construction insurance, we know how to structure policies that comply with contracts, cover Labor Law exposures, and give you peace of mind that your business is protected.

We serve contractors across:

• New York, New Jersey, and Connecticut

Whether you’re a small subcontractor or a large general contractor, we can help you secure the right coverage at the best possible terms. Our expertise includes:

• General liability

• Workers’ compensation

• Umbrella & excess liability

• Inland marine (equipment coverage)

• Professional liability

• Contract review & compliance

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Contact BGES Group Today

If you’re a New York contractor, don’t leave your insurance program to chance. The right protection can mean the difference between staying in business and financial disaster.

Contact:

📞 Gary Wallach, BGES Group

📧 bgesgroup@gmail.com

📱 (914) 806-5853

🌐 http://www.bgesgroup.com

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✅ Catchy Closing Line:

“Don’t wait until after a claim to discover what your policy doesn’t cover. Call BGES Group today and let us protect your business the right way.”

If you’re a contractor in New York, you already know this state is one of the toughest in the country when it comes to construction liability. New York’s Labor Law 240 and 241, also known as the “Scaffold Laws,” place absolute liability on contractors and property owners when a worker is injured in a gravity-related accident—whether from a fall or something falling on them. Unlike most states, in New York, comparative negligence doesn’t apply. That means if a worker falls from a scaffold, ladder, or roof—even if they weren’t using safety gear—you as the general contractor (GC) could be held 100% responsible.

This is why having Labor Law coverage built into your commercial general liability (CGL) policy is not just a good idea—it’s absolutely essential for your survival in the New York construction marketplace.

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Why Subcontractor Agreements Aren’t Enough

Many general contractors believe they are protected because their subcontractors sign insurance and hold harmless agreements. These agreements typically state that the subcontractor will indemnify and hold the GC harmless for any claims arising from their work. Subcontractors are also required to carry their own liability and workers’ compensation coverage.

But here’s the catch:

• If the subcontractor doesn’t have adequate coverage (or their insurance denies the claim due to exclusions), the general contractor is left exposed.

• Even if the subcontractor has insurance, their policy may not include full Labor Law coverage, which means the GC’s insurance ends up footing the bill.

• Labor Law cases often trigger “action over” claims—where the injured worker collects workers’ compensation benefits from the subcontractor’s policy, but then sues the GC (and sometimes the property owner).

Without proper Labor Law coverage in your liability policy, your business—and potentially your personal assets—are at risk.

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10 Realistic Labor Law Claim Scenarios (and Their Price Tags)

To show you how costly these claims can be, here are 10 made-up but realistic Labor Law claims involving New York contractors, complete with hypothetical awards and settlements:

1. Scaffold Fall – Bronx

A masonry worker employed by a subcontractor fell 20 feet from faulty scaffolding. Even though the worker wasn’t tied off, the GC was held liable under Labor Law 240.

Settlement: $3.8 million

2. Ladder Collapse – Manhattan

An electrician hired by a subcontractor used a ladder that slipped on wet flooring. The GC was sued under Labor Law 241(6).

Verdict: $2.1 million

3. Falling Object – Queens

A carpenter was struck by a falling steel beam while working below. He sued the GC, citing failure to provide adequate overhead protection.

Settlement: $4.5 million

4. Roof Fall – Brooklyn

A roofing subcontractor’s employee slipped on ice and fell off a two-story building. Despite icy conditions being obvious, the GC was found liable.

Settlement: $5.2 million

5. Action Over Claim – Staten Island

A worker employed by a subcontractor collected workers’ comp from his employer but then sued the GC, claiming lack of fall protection.

Verdict: $3.0 million

6. Elevator Shaft Fall – Midtown

A laborer fell into an unguarded elevator shaft. The subcontractor failed to install proper barricades, but the GC was deemed responsible.

Settlement: $6.7 million

7. Flying Debris – Harlem

A brick fell from the sixth floor and struck a pedestrian passing by. The GC was sued under Labor Law 240(1) for lack of netting.

Settlement: $1.9 million

8. Unsafe Scaffolding – Lower Manhattan

A painter’s scaffold tipped over due to improper assembly by a subcontractor. The GC was held liable.

Settlement: $4.1 million

9. Material Hoist Accident – Long Island City

A hoist carrying sheetrock malfunctioned, causing injuries to multiple workers. The GC and property owner were both sued.

Verdict: $7.5 million

10. Slip and Fall From Ladder – Yonkers

A subcontractor’s worker fell while descending a ladder that wasn’t secured. The worker sued the GC, citing inadequate safety training.

Settlement: $2.4 million

As you can see, these cases often result in multi-million-dollar payouts—and without the right insurance protection, a single claim can wipe out a contractor’s entire business.

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The BGES Group Advantage

At BGES Group, we specialize in New York construction insurance, with a strong focus on Labor Law coverage and workers’ compensation insurance. We’ve been helping general contractors, subcontractors, and construction businesses navigate the unique risks of New York’s labor laws for decades.

Here’s what sets us apart:

• Labor Law Expertise: We know the ins and outs of New York’s Scaffold Laws and how to structure your coverage to protect you from devastating claims.

• Tailored Insurance Programs: We design policies that fit your exact trade—whether you’re a GC, specialty subcontractor, or construction manager.

• Subcontractor Compliance Guidance: We help you enforce subcontractor insurance requirements (AI, primary & non-contributory wording, waiver of subrogation) to limit your risk.

• Regional Reach: We serve New York, New Jersey, and Connecticut, and through our associates, we can provide coverage nationwide.

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Don’t Wait Until It’s Too Late

Too many contractors learn the hard way—after a serious Labor Law claim—that their insurance doesn’t cover them the way they thought. By then, it’s too late. Protecting yourself upfront with the right Labor Law coverage is the only way to keep your business safe from New York’s unique and unforgiving liability environment.

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Contact BGES Group Today

BGES Group – Construction Insurance Specialists

📍 Serving New York, New Jersey, Connecticut, and beyond

📞 Contact: Gary Wallach – 914-806-5853

📧 bgesgroup@gmail.com

🌐 http://www.bgesgroup.com

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✅ Bottom Line: If you’re a contractor working in New York, you simply cannot afford to operate without Labor Law coverage in your liability policy. The risks are too high, the claims are too costly, and the law is too unforgiving. BGES Group is here to make sure you’re covered the right way.

When it comes to New York contractors and their commercial general liability (CGL) policies, few issues are as critical—or as misunderstood—as the treatment of subcontractors’ insurance. Most general contractors hire subcontractors to handle specialized portions of work, but when those subcontractors fail to carry proper insurance, it can directly impact the GC’s liability coverage and premiums.

That’s where hard hammer and soft hammer clauses come into play. These provisions determine what happens if a subcontractor does not carry the required insurance coverages. For New York contractors, where insurance requirements are among the strictest in the nation, understanding these clauses can mean the difference between staying in business and financial disaster.

This article will explain:

1. The difference between hard hammer and soft hammer clauses (and what insurance subcontractors must carry).

2. Whether coverage applies if subcontractors carry inadequate insurance.

3. How insurance companies charge depending on subcontractors’ coverage status.

Finally, we’ll explain how BGES Group helps contractors navigate these challenges and reduce their risk.

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1. Difference Between a Hard Hammer and Soft Hammer Clause

When a general contractor hires subcontractors, insurers typically require that each subcontractor carry its own set of coverages. A standard CGL policy in New York will require subcontractors to carry:

• General Liability Limits: Usually at least $2,000,000 or more.

• Additional Insured Endorsement: The GC must be listed as an additional insured.

• Primary and Non-Contributory Coverage: The subcontractor’s policy pays first without contributing from the GC’s policy.

• Waiver of Subrogation: Prevents the subcontractor’s carrier from suing the GC’s carrier to recoup payments.

• Workers’ Compensation Coverage: Required for all subcontractors with employees.

If subcontractors meet these requirements, the GC is protected. But if they do not, the hammer clause in the GC’s policy kicks in.

Hard Hammer Clause

A hard hammer clause is the strictest form. If a subcontractor fails to carry the required coverages, and a claim arises out of that subcontractor’s work, the GC’s insurer can deny coverage entirely. This leaves the general contractor personally responsible for defense costs, settlements, and judgments.

For example: If a subcontractor’s worker falls from scaffolding, and the subcontractor had no workers’ compensation and failed to name the GC as an additional insured, the GC’s policy with a hard hammer clause may outright deny coverage.

Soft Hammer Clause

A soft hammer clause is less severe. In this case, if a subcontractor lacks the required coverages, the GC’s insurer may still provide coverage—but only subject to a significant deductible or self-insured retention (SIR). These can range from tens of thousands to even hundreds of thousands of dollars, depending on the carrier and policy.

So instead of being left without coverage, the GC is still protected—but at a steep cost.

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2. In the Event of a Claim, Would There Be Coverage if a Subcontractor Carries Inadequate Insurance?

The answer depends entirely on whether the GC’s policy contains a hard hammer or soft hammer clause.

• With a Hard Hammer Clause: There would be no coverage at all if the subcontractor’s inadequate insurance contributed to the loss. The claim would be denied, leaving the GC fully exposed.

• With a Soft Hammer Clause: Coverage may still apply, but the GC would be responsible for a very high deductible. For many contractors, this can be financially devastating.

This is why it’s critical for general contractors to not only require subcontractors to carry proper coverage, but also to collect and verify certificates of insurance and endorsements before work begins. Otherwise, one uncovered loss could threaten the survival of the business.

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3. How Insurance Companies Charge Depending on Subcontractor Coverage

Premium calculation is another key area where subcontractor coverage (or lack thereof) plays a huge role. Insurers evaluate the risk subcontractors bring to the table and adjust rates accordingly.

If Subcontractors Carry the Right Coverage

When subcontractors maintain the proper insurance coverages—general liability, additional insured endorsements, primary/non-contributory wording, waiver of subrogation, and workers’ compensation—the GC’s carrier charges their costs at a much lower subcontractor rate rather than at the GC’s higher rate.

This creates two important advantages:

• Lower premiums at audit: At the end of the year, your payroll and subcontractor costs are reviewed. If subcontractors carried valid coverage, their costs are rated at the lower subcontractor rate, saving you money.

• Claims protection: If something goes wrong, the subcontractor’s insurance responds first. This helps prevent losses from hitting your policy, keeping your loss history clean and premiums under control.

If Subcontractors Do Not Carry the Required Coverage

If subcontractors fail to carry the required coverages—or the GC cannot produce proof during audit—their costs are charged to the GC’s policy at the higher general contractor rate. This can dramatically increase premiums.

And if a claim arises under these circumstances:

• With a Hard Hammer Clause: The claim could be completely denied.

• With a Soft Hammer Clause: The claim may be covered, but subject to a large deductible or SIR.

In both scenarios, the GC pays more—either upfront in premiums or after a claim through deductibles or uncovered losses.

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Why This Matters for New York Contractors

New York has some of the toughest liability environments in the country, particularly because of its unique Labor Law 240 (Scaffold Law), which holds contractors and property owners absolutely liable for gravity-related injuries. This makes proper subcontractor insurance—and understanding hammer clauses—even more critical.

One uninsured or underinsured subcontractor can:

• Cause your claim to be denied.

• Leave you with crippling deductibles.

• Trigger higher premiums at audit.

• Put your entire company at risk.

In short: contractors cannot afford to take chances when it comes to subcontractor insurance verification.

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How BGES Group Helps Contractors Navigate This

At BGES Group, we specialize in helping New York and tri-state contractors navigate the complex world of liability insurance. We understand the hammer clause provisions that can destroy a business if misunderstood, and we work closely with contractors to:

• Review subcontractor agreements and certificates of insurance.

• Ensure subcontractors carry the required coverages before work starts.

• Structure policies that minimize exposure to hard and soft hammer clauses.

• Educate contractors on how audits affect premiums so there are no surprises at year-end.

• Find the right carriers who understand New York construction risks.

BGES Group specializes in New York construction insurance and workers’ compensation insurance for all industries. We also provide solutions in New Jersey, Connecticut, and through our national associates, can assist contractors across the entire United States.

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Contact BGES Group

If you’re a New York contractor—or a contractor working anywhere in the tri-state area—don’t take chances with hammer clauses and subcontractor risk. Let BGES Group help protect your business and lower your costs.

📞 Contact: Gary Wallach

📧 Email: bgesgroup@gmail.com

📱 Phone: 914-806-5853

🌐 Website: http://www.bgesgroup.com

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Final Word

Hard hammer and soft hammer clauses are not just technicalities buried in your CGL policy—they are real, enforceable provisions that can determine whether your business survives a claim or collapses under the weight of uncovered losses. By requiring subcontractors to carry the right coverages, verifying compliance, and working with a specialist like BGES Group, New York contractors can keep premiums under control, protect their liability coverage, and safeguard the future of their business.

If you’re a contractor in New York, chances are you’ve felt frustrated with your insurance agency or broker at one time or another. Maybe it’s the service (or lack of it), the constant turnover of people handling your account, or the never-ending fees that eat away at your bottom line. The truth is, many contractors feel let down by agencies that treat them like just another number in their system instead of a valued client with specific needs.

Insurance is supposed to be the safety net that protects your livelihood, your employees, and your business operations. But too often, contractors discover that their broker or agency is more interested in maximizing their own profits than actually supporting their clients. If this sounds familiar, you’re not alone. Let’s dive into some of the most common reasons contractors are unhappy with their agencies or brokers.

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10 Reasons New York Contractors Are Frustrated with Their Insurance Agencies

1. Are You Working with a Big Factory-Like Agency? Many large agencies process clients like a conveyor belt, prioritizing volume over personal service. As a contractor, you need an agency that knows your name, your business, and your industry—not one where you’re just another policy number.

2. Do You Get a New Account Executive Every Few Months? Turnover is rampant in big agencies. One month you’re working with Sarah, the next month with John, and by renewal time, someone else entirely is handling your file. This constant shuffle means you never get consistent service and your account details often fall through the cracks.

3. Can You Ever Get Someone on the Phone? Contractors are busy, and when you need help, you need it fast. Unfortunately, many brokers are “away from their desk,” “in a meeting,” “out to lunch,” or “on vacation.” That doesn’t help when you’re stuck waiting for answers.

4. Does It Take Hours—or Even Days—to Get a Certificate? You shouldn’t lose out on jobs because your insurance agency can’t turn around certificates quickly. For many contractors, waiting hours or days for something so essential is not only frustrating but financially damaging.

5. Are You Being Charged Thousands in Policy Fees? Some agencies tack on outrageous “policy fees” to boost their profits. Contractors have reported paying thousands of dollars on top of premiums—money that could’ve gone toward payroll, equipment, or growth.

6. Do You Only Hear from Your Broker at Renewal Time? Good brokers stay in touch year-round, not just when they want your renewal check. If your broker disappears for 11 months out of the year, they’re not truly serving your business.

7. Does Your Broker Ever Make Coverage Recommendations? Insurance isn’t one-size-fits-all, and contractors face unique risks. Yet many brokers simply process renewals without reviewing whether you’re adequately covered. A proactive broker should be regularly advising you on coverage gaps and changes in the industry.

8. Do You Feel Like You’re Doing All the Work? Many contractors complain that they spend more time chasing their broker than their broker spends helping them. You shouldn’t have to repeatedly follow up to get answers, quotes, or certificates. The agency should be taking work off your plate—not adding to it.

9. Do You Feel Your Broker Doesn’t Understand the Construction Industry? Contractors have specialized needs, from liability concerns to workers’ compensation and umbrella policies. If your broker doesn’t “speak contractor” and understand your world, they’re not the right partner.

10. Are You Paying More Than You Should? Poorly placed coverage, lack of market shopping, or failure to negotiate on your behalf often leaves contractors overpaying. Without the right broker, you may be wasting thousands of dollars every year on inflated premiums.

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Why Contractors Choose BGES Group

If you’re nodding your head in frustration at the list above, there’s good news: not every agency operates that way. BGES Group is different.

We’re a boutique, Mom-and-Pop style insurance agency that specializes in serving contractors across New York, New Jersey, and Connecticut. We’re not a big factory agency, and we don’t treat our clients like numbers. Instead, we provide personal, consistent, and reliable service that makes your life easier.

Here’s how BGES Group stands apart:

• One Dedicated Account Executive – You’ll always work with the same person who knows your account inside and out. No endless turnover, no re-explaining your situation.
• Always Accessible – We’re available Monday through Sunday. When you call, you’ll reach someone who knows your business—not a voicemail maze.
• Fast Certificate Turnaround – We understand certificates are critical for contractors. That’s why we pride ourselves on quick, efficient turnaround so you never lose a job waiting.
• No Ridiculous Policy Fees – Unlike agencies that tack on thousands in extra charges, we don’t believe in exploiting our clients. Your money should go toward protecting your business, not lining an agency’s pockets.
• Proactive Guidance – We don’t just disappear after binding coverage. We review your account, identify risks, and make recommendations to keep you properly protected.
• Deep Industry Knowledge – We specialize in contractors, so we know the ins and outs of your world—from scaffolding exposures to liability limits.
• Personal Touch – We treat clients like family. Many contractors who switch to us say it’s the first time they’ve felt truly supported by their agency.

At BGES Group, our mission is to simplify insurance for contractors, protect them from financial risk, and save them money—while providing the personal attention that large agencies can’t.

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Don’t Stay Stuck with an Agency That Doesn’t Care

As a contractor, your time and resources are too valuable to waste on poor service, high fees, and brokers who don’t understand your business. If your current agency is making you unhappy for any of the reasons listed above, it may be time to make a change.

BGES Group offers a better way. With us, you’ll get personal service, responsive support, and coverage tailored to your unique needs as a contractor.

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Contact BGES Group Today

📍 Location: BGES Group – Serving Contractors Across New York, New Jersey, and Connecticut

📞 Phone: (914) 806-5853 – Gary Wallach

📧 Email: bgesgroup.com@gmail.com

🌐 Website: www.bgesgroup.com

Stop feeling like just another number. Partner with BGES Group and experience the difference of a boutique agency that puts contractors first.

Construction defect lawsuits—long a fixture in the building industry—are on the rise, and legal experts believe this trend will continue over the next several years. While construction disputes have always been part of the business, today’s claims are larger, more complex, and more likely to end in high-dollar verdicts than ever before.

Several major forces are driving this surge, including a persistent shortage of skilled labor, the pressure to quickly rebuild after natural disasters, increasingly complex projects, and the rising frequency of “nuclear verdicts.” For construction companies, contractors, architects, engineers, and even material suppliers, understanding the dynamics behind this trend is essential—not only to manage risk, but also to ensure that insurance programs are robust enough to handle a potential claim.

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Why Defect Claims Are Increasing

1. Skilled Labor Shortage

The construction industry has been struggling with a shortage of skilled workers for more than a decade, and the gap continues to widen. Recent estimates suggest that the U.S. needs roughly 500,000 additional workers to meet demand.

According to Seyfarth Shaw’s 2025 Commercial Litigation Outlook, 30% to 40% of the construction workforce is made up of immigrants, with a significant portion undocumented. Changes in immigration policy, coupled with the industry’s long-standing difficulty in attracting young workers to the trades, have kept the talent pipeline dangerously thin.

When fewer skilled hands are available, the likelihood of mistakes increases—whether that means improper installation, overlooked details, or substandard workmanship. These mistakes may not be immediately apparent but can turn into serious problems years down the road, eventually forming the basis of costly defect claims.

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2. Urgency in Post-Disaster Rebuilding

Natural disasters like hurricanes, wildfires, and floods are another major driver of defect claims. When communities are devastated, the priority is to rebuild as quickly as possible. In some cases, this urgency leads to the loosening or even temporary waiving of certain permitting and inspection requirements.

While well-intentioned, these measures can create conditions where workmanship and design issues slip through the cracks. A roof installed in haste, an electrical system rushed into service, or foundations poured without thorough inspection—all can lead to major defects and disputes years later.

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3. More Complex and Higher-Value Projects

In many markets, construction projects are becoming increasingly ambitious. Builders are taking on high-end custom homes worth tens of millions, large-scale medical facilities, intricate infrastructure work, and mixed-use developments with demanding design requirements.

With more complexity comes more potential points of failure—specialized materials, unique engineering challenges, and a greater number of stakeholders involved in decision-making. A small oversight on a $1 million project might be manageable; the same oversight on a $50 million project can become a legal and financial catastrophe.

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4. Litigation Dynamics and ‘Nuclear Verdicts’

Plaintiffs’ attorneys are increasingly timing defect lawsuits to be filed just before the statute of limitations runs out—often up to 10 years after project completion. This allows more time for defects to become visible and for damages to accumulate.

The rise of “nuclear verdicts”—jury awards in the multi-million-dollar range—is also changing the calculus. Courts are increasingly awarding massive sums when they find negligence or significant property damage, making construction defect cases more attractive to plaintiffs’ firms.

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Examples of Recent Construction Defect Verdicts

• Chester County, PA: A jury awarded $3.3 million to three homeowners who sued their builder for negligence that led to construction defects and water damage.
• Maryland: A condo association secured a $5.6 million award against Ryan Homes for faulty construction.

These verdicts illustrate how defect claims are not just more frequent—they are also becoming far more expensive.

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The Insurance Gap: Why Coverage Isn’t Guaranteed

There is no single insurance policy designed specifically to cover construction defects. While various policies may respond depending on the situation, coverage is often limited and highly dependent on the nature of the claim.

• Commercial General Liability (CGL): May provide coverage for defects that result in property damage or bodily injury, usually through the products-completed operations portion of the policy. However, many exclusions may apply.
• Builder’s Risk: Protects a project during construction but typically does not respond once the project is complete—unless the defect is identified and addressed before handover.
• Professional Liability: Covers architects, engineers, and other design professionals for claims related to design errors or professional negligence.

One of the biggest pitfalls: many defects that involve poor workmanship alone—without causing property damage—may not be covered at all. This leaves builders, contractors, and developers facing potentially devastating out-of-pocket costs for both repairs and legal defense.

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What Industry Professionals Can Do Now

With litigation pressures mounting, construction professionals can take proactive steps to reduce their risk exposure:

1. Tighten Quality Control: Implement formal inspection and sign-off procedures at each phase of construction. Independent third-party inspections can add another layer of protection.
2. Vet Subcontractors Thoroughly: Require proof of adequate insurance and ensure subcontractors name you as an additional insured on their policies.
3. Document Everything: Keep detailed records of design changes, materials used, inspection results, and client approvals. This documentation can be invaluable in defending against a claim years later.
4. Review Insurance Programs Regularly: Work with an experienced insurance advisor to identify coverage gaps, confirm policy terms, and explore endorsements or higher limits where appropriate.
5. Plan for the Long Tail: Understand statutes of limitations in your state and recognize that claims can—and often do—surface years after a project is completed.

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Final Thoughts

The rise in construction defect litigation is more than just a legal trend—it’s a business reality that can severely impact your bottom line. Between the labor shortage, post-disaster rebuilding pressures, complex projects, and the risk of nuclear verdicts, today’s construction industry is operating in a higher-risk environment than ever before.

For contractors, developers, architects, engineers, and suppliers, taking a proactive approach to quality control, subcontractor management, documentation, and insurance coverage isn’t just smart—it’s essential.

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About BGES Group

BGES Group is a leading insurance agency specializing in serving the construction industry. They work with contractors, builders, and developers to design insurance programs that protect against risks like construction defects, jobsite injuries, and property damage.

With extensive experience and strong carrier relationships, BGES Group helps clients in New York, New Jersey, and Connecticut secure the coverage they need—while identifying and closing dangerous gaps that could leave them exposed.

Contact BGES Group – Gary Wallach

📞 Phone: 914-806-5853

📧 Email: bgesgroup@gmail.com

🌐 Website: www.bgesgroup.com

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When you’re a contractor working in New York City, the rules and insurance requirements can feel like a never-ending maze. Between the City’s licensing renewal process, permit requirements, and your own commercial general liability (CGL) policy endorsements, it’s easy to think you’re covered when you may actually be leaving dangerous gaps.

Two common questions come up again and again:

1. If my CGL policy includes CG 20 10 and CG 20 38, will the City of New York automatically be covered as an additional insured if the contract says so?

2. When I renew my contractor’s license with the NYC Department of Buildings, am I required to list the City for both ongoing operations and completed operations—or just ongoing?

Let’s break this down clearly, step by step.

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The Contract and the Policy – How They Work Together

The City of New York often requires contractors, by written contract, to name the City, its officials, and employees as additional insureds. That’s the legal side. On the insurance side, your CGL policy has to include the correct endorsements to make that happen.

The Key Endorsements

• CG 20 10 – Additional Insured – Owners, Lessees or Contractors – Scheduled Person or Organization. The 11/85 version included completed operations, but more recent versions (e.g., 04/13) limit coverage to ongoing operations unless you also have CG 20 37.

• CG 20 38 – Additional Insured – Automatic Status for Other Parties When Required in Written Construction Agreement. This extends coverage automatically to any party required by a written construction agreement, signed before work begins. But it still only covers ongoing operations.

If your contract says the City must be an additional insured, and you have CG 20 38 (or CG 20 10 with the City scheduled), they will be covered for ongoing operations. If the City also wants completed operations coverage, that’s a different endorsement—usually CG 20 37.

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What the “Insured Contract” Definition Covers

This is another piece of the puzzle. Your CGL policy’s definition of “insured contract” includes agreements where you assume the tort liability of another party for bodily injury or property damage. This applies to indemnification clauses you sign with the City.

Important: “Insured contract” coverage is not the same as “additional insured” coverage. Insured contract protects you when you’ve agreed to pay for someone else’s liability. Additional insured coverage protects the other party directly under your policy.

With the City, you usually have both:

• Indemnification (covered if it meets the insured contract definition)

• Additional insured status (covered if the right AI endorsements are in place)

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What the NYC Licensing Rules Actually Require

The New York City Department of Buildings has its own rules when you renew your contractor license. These are spelled out in 1 RCNY § 104-02(d)(3).

Here’s the key part:

• You must provide proof of General Liability insurance.

• The City of New York (and its officials and employees) must be named as additional insureds for work to be performed under any permits issued.

• The forms they reference—CG 20 12 or CG 20 26—are ongoing operations only.

That means you are not required by the City’s licensing rule to name the City as an additional insured for completed operations. The requirement is strictly for ongoing work, not after the work is finished.

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Why This Matters

If you assume you’ve got the City covered for completed operations just because you have CG 20 10 or CG 20 38, you may be wrong.

• City Licensing Requirement: Ongoing ops only.

• Many City Contracts: May require both ongoing and completed ops—but you won’t meet that second requirement unless you have CG 20 37 or an older CG 20 10 that includes completed ops.

If you miss that, you could be in breach of contract with the City, and worse, you could face uninsured claims for completed work.

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Practical Example

Imagine you install HVAC systems in a municipal building.

• Six months later—long after you’ve finished—something goes wrong, causing water damage.

• The City is sued and tenders the claim to your insurer under your additional insured agreement.

• If you only had CG 20 38 or CG 20 10 (04/13), the insurer could deny AI coverage because it’s a completed operations claim.

You would then be on the hook, either through your own liability or through your indemnification obligations.

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Best Practices for New York City Contractors

1. Review your contracts carefully – Check whether the City is asking for completed operations coverage in addition to ongoing operations.

2. Match the endorsements to the requirements – If completed ops are required, make sure you have CG 20 37 or a CG 20 10 version that still provides it.

3. Don’t confuse insured contract with additional insured – Both matter, but they are different coverages.

4. Renewal requirements ≠ full contract requirements – The City’s licensing renewal rule is only a baseline for ongoing ops, not the whole picture.

5. Work with an insurance specialist – NYC construction insurance is full of traps. One wrong assumption can cost you millions.

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How BGES Group Can Help

At BGES Group, we specialize in insuring New York and Tri-State contractors. We understand the City’s licensing requirements, the nuances of ISO additional insured endorsements, and how to structure your policies so you’re protected for both ongoing and completed operations—if your contracts demand it.

We regularly help contractors:

• Avoid coverage gaps with the City of New York and other municipalities.

• Negotiate contract terms so insurance requirements are realistic and insurable.

• Secure policies that satisfy both DOB licensing requirements and project-specific demands.

Don’t risk finding out you’re uncovered after the claim hits. We’ll review your contracts, endorsements, and renewal requirements so you know exactly where you stand.

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Contact BGES Group Today

BGES Group

Specialists in New York & Tri-State Contractor Insurance

📞 Gary Wallach: 914-806-5853

📧 bgesgroup@gmail.com

🌐 http://www.bgesgroup.com

Your reputation, your projects, and your financial security depend on getting this right. Let us make sure you are.

If you’re a New York contractor, you know your Commercial General Liability (CGL) policy is your first line of defense against the financial fallout of accidents, property damage, or injuries that happen on your jobs. But here’s something that catches many contractors by surprise: your coverage is split into two broad categories—Ongoing Operations and Completed Operations—and knowing which is which could mean the difference between a covered claim and a costly out-of-pocket nightmare.

Whether you’re building from the ground up, renovating, or doing smaller subcontracting work, understanding the difference is critical for risk management, contract compliance, and avoiding uninsured exposure. Let’s break it down.

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Ongoing Operations Coverage

This is protection for work you are currently performing. If property damage or bodily injury occurs while the work is still in progress, ongoing operations coverage applies. Importantly, this does not apply once you’ve completed your work or left the job site—that’s where completed operations kicks in.

Here are five examples of Ongoing Operations claims:

1. Falling Debris During Construction While framing the second floor of a townhouse, a piece of lumber falls and damages a parked vehicle below. The damage occurs while the crew is actively working, so it’s covered under ongoing operations.
2. Injury to a Pedestrian Passing the Job Site A pedestrian trips over an extension cord running from the sidewalk into your work area. The work isn’t done yet, so the injury falls under ongoing operations.
3. Property Damage from Active Work A contractor’s crew is cutting pipe inside a building and accidentally floods an office suite below. Since the work was still in progress, ongoing operations applies.
4. Subcontractor Causing Damage Mid-Project An electrician hired by you drills into a water line during installation, damaging drywall and flooring. The project is still underway, so it’s considered an ongoing operations claim.
5. Scaffolding Collapse During Work Hours While a masonry team is actively laying bricks, their scaffolding collapses, damaging a neighboring building. Because the work wasn’t completed, the claim is covered under ongoing operations.

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Completed Operations Coverage

Once you’ve finished the work, packed up your tools, and left the job site, any damage or injury related to your work shifts to completed operations. This coverage is sometimes referred to as the “products-completed operations hazard” in your CGL policy.

Here are five examples of Completed Operations claims:

1. Roof Leak Months After Completion Six months after finishing a roofing project, heavy rain causes leaks that damage a client’s interior. The damage is due to defective installation and falls under completed operations.
2. Faulty Electrical Wiring Causing Fire A year after finishing electrical work on a home, faulty wiring installed by your crew sparks a fire. Completed operations covers resulting damage (but not redoing the defective work itself).
3. Tile Installation Leading to Slip Hazard You install tile in a lobby. Months later, water seeps beneath, causing tiles to lift and a tenant to slip and get injured. This is a completed operations claim.
4. Cabinet Installation Failure Three months after installing kitchen cabinets, they detach from the wall, damaging countertops and injuring the homeowner. This damage occurs after you’ve finished the work, so it’s completed operations.
5. HVAC System Malfunction After completing HVAC installation in an office building, the system fails in the middle of winter, causing water pipes to freeze and burst. Completed operations would respond to the resulting damage.

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Why the Distinction Matters for New York Contractors

In New York—especially in construction—contract requirements often specify both ongoing operations and completed operations coverage for Additional Insureds. General contractors, property owners, and even municipalities want to ensure they’re protected during the job and after the work is complete.

If your policy only covers ongoing operations for Additional Insureds, you could be in breach of contract. Worse, you could be stuck defending a lawsuit out of your own pocket years after the job is done.

Remember: New York has a six-year statute of limitations on construction defect claims. Without completed operations coverage, you could be unprotected for a long time after the work wraps up.

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Best Practices for Contractors

• Review Contracts Carefully – Look for language requiring both ongoing and completed operations for Additional Insureds.
• Coordinate with Your Insurance Broker – Make sure your CGL policy and endorsements match what your contracts require.
• Document Work Completion – Keep records of when your job was finished; it can help determine if a claim is ongoing or completed operations.
• Keep Certificates Updated – If you’re the GC, ensure your subs carry both coverages and keep their certs current.

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Why Work with BGES Group

At BGES Group, we’re not just insurance brokers—we’re New York Contractor Insurance Specialists. We understand the unique liability challenges contractors face in the NY metro area, and we know how to tailor policies that meet tough contractual requirements.

We work extensively with contractors in New York, New Jersey, and Connecticut, from small specialty trades to large general contractors. Our goal is simple: Make sure you’re covered, compliant, and confident—whether you’re in the middle of a job or years past completion.

We stay ahead of industry changes, New York Labor Law complexities, and the nuances of surplus lines markets so you can focus on running your projects without sleepless nights about insurance gaps.

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Contact BGES Group – Gary Wallach

📞 Phone: (914) 806-5853

📧 Email: bgesgroup@gmail.com

🌐 Website: www.bgesgroup.com

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Final Thought: If you’re a contractor working in New York, the difference between ongoing and completed operations coverage isn’t just an insurance technicality—it’s a survival skill. Don’t find out the hard way that your policy doesn’t cover a claim because it happened after the job was done. Let BGES Group make sure you’re protected from day one until long after the last nail is hammered.

Let’s walk through a real-world example that could easily happen to a New York contractor.

You’re an HVAC contractor. Your Commercial General Liability (CGL) policy is written through a surplus lines carrier (meaning it’s not a standard admitted policy). On top of that, your policy includes a Contractors Limitation Endorsement — which means your liability coverage is restricted to specific types of work listed on your policy. In your case, the endorsement says you are covered for HVAC work only.

Now, you subcontract out some sheetrock work on a project. You hire a reputable sheetrock contractor, and per your contract, they add you as an additional insured on their liability policy.

But here’s the question… if your subcontractor causes an accident — let’s say they damage property or injure someone — and you get sued along with them, will your own CGL policy step in to defend you?

The Short Answer: Probably Not

Here’s why: The Contractors Limitation Endorsement in your surplus lines policy says you are only covered for the type of work listed — in this case, HVAC. If the claim involves sheetrock work (or any trade not listed), your insurer will likely deny coverage.

It doesn’t matter if you weren’t swinging the hammer yourself. If the accident arises from work outside your covered classification, the insurer can argue that it’s not part of your insured operations.

But You’re an Additional Insured on the Subcontractor’s Policy

This is where your contract with the sheetrock subcontractor becomes critical. If you were properly added as an additional insured on their liability policy, that policy should respond to claims arising out of their work — including defending you in the lawsuit.

However, there are some catches:

1. Policy Language – Some additional insured endorsements only cover you for “ongoing operations,” not completed work. If the claim happens after the sheetrock is done, you could be out of luck.

2. Exclusions – If their policy excludes certain work or has its own subcontractor restrictions, you could still face denial.

3. Carrier Solvency – A certificate of insurance is only as good as the actual policy behind it.

The Bottom Line for New York Contractors

If you’re operating with a surplus lines CGL policy and a Contractors Limitation Endorsement, you must be extremely careful about what work you subcontract. Always:

• Review the limitation endorsement to understand exactly what’s covered.

• Require subcontractors to add you as an additional insured and provide the actual endorsement, not just a certificate.

• Work with an insurance specialist who can identify dangerous gaps before a claim exposes them.

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About BGES Group

BGES Group is a specialist insurance agency focused on protecting contractors throughout New York, New Jersey, and Connecticut. We understand the complex, high-risk nature of the construction industry and how policy endorsements, exclusions, and subcontractor relationships can make or break your coverage.

Whether you’re an HVAC contractor, general contractor, or specialty trade, we’ll review your current policies, identify dangerous gaps, and recommend programs that actually respond when you have a claim — not just when you pay your premiums.

We represent top carriers, including those with broad coverage for subcontracted work, strong additional insured provisions, and fewer “gotcha” endorsements that can leave you exposed.

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📞 Contact BGES Group Today

• Gary Wallach – Workers’ Compensation & Contractor Liability Specialist

• Phone: 914-806-5853

• Email: bgesgroup@gmail.com

• Website: http://www.bgesgroup.com

BGES Group — Protecting Contractors, Closing Coverage Gaps, and Fighting for You When It Matters Most.

In New York’s construction industry, it’s common for contractors to use a mix of workers—day laborers, leased employees, or independent contractors paid on a 1099. This approach offers flexibility and speed when deadlines are tight and skilled help is hard to find. But there’s a critical question too many contractors overlook until it’s too late:

Are these workers actually covered under your Commercial General Liability (CGL) policy?

The answer depends on how your policy is written—and in many cases, the coverage contractors think they have simply isn’t there.

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1. Day Laborers: The Hidden Exposure

Day laborers are often brought on for short-term needs—unloading materials, site cleanup, or helping with small tasks. Because they’re usually not on your formal payroll, your insurance company may question their employment status if there’s a claim.

If a day laborer is injured on the job, they would most likely be covered under workers’ compensation (either yours or the employer of record). However, that’s not where the risk ends. In New York, injured workers often bring an “action over” claim—a lawsuit against the general contractor or property owner under Labor Law §§ 240/241.

If that GC or owner tenders the claim back to you because of a contract you signed, your CGL policy may not respond. Many policies have injury to employee or worker exclusions that apply to anyone performing work on your behalf—regardless of payroll status. If your policy’s definition of “employee” or “worker” includes day laborers, your insurer can deny coverage.

The result? You could be stuck paying your own defense costs and any settlement or judgment—an uninsured claim that can easily reach six or seven figures.

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2. Leased Employees: Who’s Responsible?

Leased employees—provided by a staffing agency or Professional Employer Organization (PEO)—may seem like a safer option. You might assume the staffing company’s insurance will handle any claim. But the reality is more complicated.

Some CGL policies have an employee leasing exclusion, pushing coverage responsibility onto the leasing company’s insurance. If their coverage is inadequate or excludes certain claims, you could still be on the hook.

It gets even trickier if a leased worker causes property damage or injures a third party. Which policy responds first—yours or theirs? Without clear contractual agreements and properly coordinated insurance, finger-pointing between carriers can delay payments and increase your legal costs.

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3. Independent Contractors (1099 Workers): The Soft and Hard Hammer Problem

Insurance carriers often treat 1099 workers as independent contractors, not employees. That might sound like a positive for workers’ comp purposes, but in CGL coverage, it’s a potential landmine.

Many contractor policies include independent contractor conditions or soft/hard hammer warranties requiring you to:

• Collect proof of insurance from every subcontractor before work starts.
• Ensure you’re named as an additional insured on their policy.
• Verify their coverage meets required limits (often $1M per occurrence or more).
• Obtain signed hold harmless or indemnification agreements.

Failing to meet these requirements can have costly consequences:

• Soft hammer: The claim is covered, but you pay a significantly higher deductible—sometimes $10,000 to $100,000 per occurrence.
• Hard hammer: The claim is denied outright unless the subcontractor had the proper coverage in place.

Example: You hire a 1099 roofer who fails to tarp a roof before a storm, causing $250,000 in water damage. If you didn’t collect the proper certificates and endorsements before work began, your policy could deny the claim—or force you to cover a massive deductible.

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4. Common Exclusions That Can Leave You Exposed

Many New York contractor policies include one or more of these coverage killers:

• Injury to Workers Exclusion – Broadly excludes bodily injury to any worker—employee, leased worker, day laborer, or volunteer—while performing duties.
• Labor Law/Scaffold Law Exclusion – Denies coverage for claims under New York Labor Law §§ 240/241, which are common in construction injury cases.
• Independent Contractor Warranty – Requires strict compliance with risk transfer procedures for all 1099 workers.
• Employee Leasing Exclusion – Removes coverage for leased employees, expecting the staffing company to provide it.

These provisions are often buried deep in the policy, and many contractors don’t know they exist until after a claim is denied.

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5. The Financial Impact of a Coverage Gap

Without proper coverage, the costs can be devastating:

• Medical bills and lost wages for injured workers (if workers’ comp doesn’t apply).
• Property damage repairs from accidents caused by non-covered workers.
• Defense costs in a lawsuit, which can easily exceed $100,000 before trial.
• Settlements or judgments that must be paid out of pocket.

Even one uninsured claim can threaten the survival of your business.

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6. How to Protect Your Business

If you use day laborers, leased employees, or 1099 workers, you can reduce your risk by:

• Reviewing your CGL policy carefully—pay attention to how “employee” and “worker” are defined, and identify exclusions.
• Implementing strict subcontractor protocols—always collect certificates of insurance, additional insured endorsements, and signed hold harmless agreements.
• Working with a broker who specializes in construction risks—generalist agents often miss critical policy details.
• Requiring compliance before work starts—no insurance, no job.
• Auditing insurance certificates regularly to ensure they’re still valid.

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BGES Group: Protecting Contractors in NY, NJ, and CT

At BGES Group, we focus exclusively on helping contractors navigate the complex, high-risk insurance landscape in New York, New Jersey, and Connecticut. We know the traps hidden in many contractor policies—especially the ones that affect coverage for day laborers, leased employees, and independent contractors.

We make sure you’re not blindsided by exclusions, hammer clauses, or misclassified workers when a claim happens. We also help you put subcontractor compliance procedures in place so your policy conditions are met—and your coverage stays intact.

Our services include:

• In-depth policy reviews to identify and fix coverage gaps.
• Negotiating with carriers to secure better terms for independent contractor coverage.
• Setting up subcontractor compliance programs to satisfy warranty requirements.
• Providing fast, expert support when a claim or compliance issue arises.

We don’t just sell insurance—we work as your partner to keep your projects running and your business protected.

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Contact BGES Group Today

Don’t wait for a denied claim to discover your coverage gaps. Let us review your policies and make sure your business is protected from the real-world risks of using non-traditional labor.

BGES Group
Workers’ Compensation & Contractor Insurance Specialists
Serving New York, New Jersey & Connecticut

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

If you’re a New York subcontractor carrying your liability insurance through a surplus lines carrier, you’ve probably run into a familiar situation: the general contractor (GC) sends over a subcontract agreement that requires you to name the GC, the project owner, and various upstream parties as Additional Insureds, along with Waiver of Subrogation and Primary and Non-Contributory endorsements.

On the surface, you might think your Commercial General Liability (CGL) policy already covers all of this. But here’s the trap—especially in the surplus lines world—your policy may not automatically extend Completed Operations coverage to all of those upstream parties. Without the right setup, you could be sitting on a hidden coverage gap that only reveals itself when a claim hits… and by then, it’s too late.

Where the Problem Starts

Most well-written CGL policies include CG 20 38 (“Additional Insured – Owners, Lessees or Contractors – Automatic Status for Other Parties When Required in Written Construction Agreement”) for ongoing operations. This form is a lifesaver because it automatically covers other parties as Additional Insureds while your work is in progress, as long as there’s a written agreement requiring it.

However, many contracts also demand that these same parties be covered for Completed Operations—meaning after your work is finished. That’s where CG 20 37 comes in.

Here’s the catch:

• CG 20 38 = ongoing operations
• CG 20 37 = completed operations

When you look closely, CG 20 37 usually only grants completed operations coverage to the direct party you have a contract with—which is almost always the general contractor. That means the owner, developer, lender, or other upstream parties are left out, even though your subcontract agreement says they must be included.

If a claim arises after your work is done (for example, a slip-and-fall months after project completion), and the owner is sued, your policy might deny coverage because the owner wasn’t specifically included in the completed operations endorsement.

Why This is a Real Problem

Without coverage, those upstream parties can turn around and demand indemnification directly from you. That could mean:

• Paying defense costs out of your own pocket
• Losing the protection you thought you had
• Putting your business at risk of a financially crippling judgment

This isn’t an abstract “insurance nerd” problem—it’s a real-world, high-stakes issue that plays out on construction projects every day.

The Simple, No-Cost Fix

The solution is straightforward and costs you nothing:

Have a separate written agreement signed by all parties—GC, owner, developer, and any other upstream entities—stating that they are to be included as Additional Insureds, with Waiver of Subrogation and Primary & Non-Contributory status, for both Ongoing and Completed Operations.

The magic here is that insurance endorsements like CG 20 37 trigger coverage only if there is a direct written contract between you and the party seeking coverage. By creating a short, standalone agreement that includes everyone, you create that direct contractual link—and your endorsement now applies to all of them.

Why Brokers Don’t Always Catch This

Even seasoned brokers sometimes miss this, especially when working with surplus lines carriers whose forms can differ from standard ISO versions. You need a broker who understands construction risk inside-out and proactively checks that all contractually required parties will truly be covered under both CG 20 38 and CG 20 37.

If your broker doesn’t bring this up before you sign the subcontract, you could be walking into a dangerous gap.

What a Simple Agreement Could Look Like

Below is a sample template you can adapt. It’s intentionally short to keep it easy for all parties to sign without getting bogged down in legal review (though you should always have your attorney approve it).

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Additional Insured & Waiver Agreement

Date: ___________________

Project Name & Address: __________________________________________

Subcontractor: __________________________________________

General Contractor: __________________________________________

Owner/Developer/Other Upstream Parties:
(List all parties to be covered)

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Agreement:
The Subcontractor agrees to provide and maintain Commercial General Liability insurance coverage naming the General Contractor and all listed upstream parties above as Additional Insureds on a primary and non-contributory basis, with waiver of subrogation, for both Ongoing Operations and Completed Operations.

This agreement shall satisfy the “direct written contract” requirement of Additional Insured endorsements CG 20 38 (Ongoing Operations) and CG 20 37 (Completed Operations) or equivalent forms, and applies to all work performed on the above project.

Signed:

Subcontractor: ______________________ Date: __________

General Contractor: __________________ Date: __________

Owner/Other Party: __________________ Date: __________

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This one-page document, when signed by all parties, closes the gap and ensures your endorsements can actually work as intended.

Why You Can’t Afford to Skip This

Here’s a real-world scenario:
A subcontractor installs railings at a commercial building. A year after completion, a tenant leans on the railing, which gives way, causing injury. The lawsuit names the owner, GC, and subcontractor. The GC is covered under the subcontractor’s CG 20 37 endorsement because they had a direct contract. The owner? Not covered—no direct contract. The owner demands defense and indemnity from the subcontractor, and the subcontractor’s carrier denies it.

End result? The subcontractor’s out tens of thousands in defense costs, not to mention the distraction and reputational damage.

One signature on a pre-project Additional Insured & Waiver Agreement could have avoided the whole mess.

Final Word: Protect Yourself Now

Surplus lines CGL policies can be powerful tools, but you need to know exactly how their endorsements operate in the real world. A one-page agreement is a simple, no-cost way to extend protection to all required parties and meet your subcontract obligations without risking a nasty surprise later.

The bottom line: Don’t rely on assumptions. Create the direct contractual link. Close the gap before the job starts.

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About BGES Group

BGES Group is one of the leading construction insurance specialists serving New York, New Jersey, and Connecticut. We understand the unique challenges subcontractors face—especially when dealing with surplus lines carriers, complex contract requirements, and high-stakes liability exposures.

Our team knows how to structure policies and endorsements to truly match your contractual obligations, and we’ll walk you through the critical details—like closing the CG 20 37 completed operations gap—before you sign a subcontract.

We’ve built our reputation on protecting contractors from the hidden pitfalls that can turn a profitable job into a financial disaster.

Contact BGES Group today:
📞 (914) 806-5853 – Gary Wallach
📧 bgesgroup@gmail.com
🌐 www.bgesgroup.com