If you’re a New York contractor, your commercial general liability (CGL) and excess or umbrella liability insurance policies are more than just paperwork—they’re lifelines that protect your business from devastating lawsuits, costly claims, and project shutdowns. Yet, time and time again, contractors buy the wrong policies, work with inexperienced agents, or overlook key policy details that end up costing them big.
Here’s a guide to help you avoid costly mistakes and make smart choices when buying or renewing your CGL and umbrella/excess liability insurance policies.
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✅ 5 DO’s of Buying CGL and Excess Liability Insurance
1. DO Work with a Specialist in New York Construction Insurance
Not all insurance agents understand the complexities of New York’s construction liability market. Labor Law 240/241 claims, action-over exclusions, and aggressive third-party risk transfer practices make this a uniquely difficult market. Work with a broker who lives and breathes New York construction insurance—and has experience dealing with general contractors, project owners, and certificate requests.
2. DO Review Subcontractor Risk Transfer Language Carefully
If you hire subcontractors, make sure your policy supports risk transfer properly. Look for policies that provide additional insured status via endorsements like CG2010 (11/85 or equivalent), CG2037, and CG2038. You’ll also want waiver of subrogation and primary and non-contributory language to meet most GC and project requirements.
3. DO Make Sure Your Excess or Umbrella Policy Truly Follows Form
Your umbrella or excess liability policy should match (or “follow form” over) your underlying general liability policy. Many low-cost excess policies exclude key coverages or drop down in ways that don’t protect you. Make sure your umbrella includes action-over protection, covers additional insureds, and follows your general liability terms without nasty surprises.
4. DO Understand the Rating Basis and Premium Drivers
Your general liability premium is often based on payroll or subcontractor costs. Umbrella policies are typically rated off of the underlying limits and the nature of your operations. Track your payroll and subcontractor costs accurately, and communicate changes to your broker to avoid surprises at audit or renewal.
5. DO Get a Written Review of Exclusions and Endorsements
You need to know what your policy covers—and what it doesn’t. Ask your broker for a plain-English summary of key endorsements and exclusions. Pay close attention to:
• Labor Law exclusions
• Residential exclusions
• Roofing exclusions
• Height limitations
• Subcontractor warranty clauses
A five-minute review could save your business from a $1 million claim denial.
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❌ 5 DON’Ts of Buying CGL and Excess Liability Insurance
1. DON’T Buy Based on Price Alone
The cheapest policy is rarely the best. That $10,000 policy might have exclusions that could put you out of business after one claim. Always compare coverage first, price second.
2. DON’T Assume All Policies Include Action-Over Coverage
Labor Law 240/241 exposes contractors to strict liability when a worker falls from a height. Action-over claims—when a worker sues the owner or GC, who then sues you—can cost millions. Many budget policies exclude action-over protection, even in general and excess layers. If it’s not explicitly included, assume it’s excluded.
3. DON’T Ignore Subcontractor Coverage Requirements
If your subs are not properly insured, or you don’t collect and track COIs correctly, your own policy could be on the hook for their mistakes. Worse, you could be surcharged or denied renewal. Your policy should clearly state coverage for subcontracted work, and you need a system to verify your subs’ coverage.
4. DON’T Overlook Your Certificate Requests
If you’re constantly being asked for COIs with custom wording or endorsements, you need a broker who understands compliance. Some carriers won’t issue certain endorsements, causing project delays or disqualification. Don’t wait until you’ve been rejected by a GC—get your certificates reviewed up front.
5. DON’T Trust That Your Policy Will Be Accepted Everywhere
Just because you have insurance doesn’t mean it will be accepted by every general contractor, municipality, or project owner. Carriers like Atlantic Casualty, Lloyd’s of London (some programs), or certain surplus lines policies are often rejected due to limited coverage, poor claims history, or incomplete forms. Ask your broker if your policy is “widely accepted” before binding.
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Why Smart Contractors Choose BGES Group
At BGES Group, we specialize in New York construction insurance, including general liability, excess liability, workers’ compensation, and commercial auto. With decades of experience in the Tri-State area, we know the carriers, know the policies, and most importantly—know what can go wrong.
We don’t just sell policies—we help you build a risk management program that protects your business, wins you more work, and keeps your clients happy. Whether you’re a GC in Manhattan, a subcontractor in Yonkers, or a drywall contractor in Long Island, we’ve got your back.
We work with contractors in:
• New York
• New Jersey
• Connecticut
• And via our trusted partners, across the U.S.
We handle all types of contractors including tough classes of business:
• Asbestos
• Roofing
• Concrete
• Drywall
• Masonry
• Residential work
• Mixed-use and commercial renovations
Our Services Include:
• General liability & excess/umbrella policies
• Workers’ compensation and pay-as-you-go plans
• Commercial auto and inland marine
• Certificate management
• Claims guidance and loss control
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Contact BGES Group Today
Stop wasting time with agents who don’t return calls or leave you hanging at audit time.
📞 Gary Wallach – Owner
📱 914-806-5853
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Protect your business like a pro. Call BGES Group today.