Navigating the world of insurance can be confusing, especially when it comes to understanding what workers’ compensation insurance is and why it’s important. In this blog, we’ll break it down in a friendly and simple way to answer all your questions about workers’ compensation insurance in New Jersey.

What Is Workers’ Compensation Insurance?

Workers’ compensation insurance is a safety net designed to protect employees who are injured or become ill due to their jobs. It’s a legal requirement in many states, including New Jersey, where it’s referred to as a no-fault system. This means that employees are entitled to benefits regardless of who was at fault for the accident.

Unlike traditional health insurance, workers’ compensation covers both medical expenses and a portion of lost wages. This makes it a key component in ensuring financial stability for injured workers. Employees can receive timely medical care and rehabilitation support to help them return to work safely and swiftly.

It’s important to note that workers’ compensation insurance also shields employers. By providing these mandated benefits, employers are often protected from lawsuits initiated by injured employees. This mutual benefit is the cornerstone of a thriving workplace environment.

Why Is Workers’ Compensation Insurance Required in NJ?

Alongside ensuring workplace safety, New Jersey’s mandate for workers’ compensation insurance serves to offer a financial umbrella for both workers and companies. Any business with employees, whether part or full-time, must comply with this requirement, further emphasizing the importance of legal adherence.

Through this regulation, the state aims to prevent lengthy legal battles and ensure workers receive necessary compensation without delay. This foresight facilitates a smoother, quicker recovery process and emphasizes a culture focused on care rather than contention.

For new or existing businesses, understanding your obligations under state law can be simplified by consulting knowledgeable insurance advisors. They provide invaluable insights into tailoring a plan that not only covers legal essentials but also aligns with company goals.

What Are the Benefits of Workers’ Compensation Insurance for Employees?

The primary benefit for employees is financial security during unforeseen hardships. Workers’ compensation ensures that individuals can focus on their recovery without fearing financial ruin. This includes coverage for medical bills and supplemental income for lost wages, giving employees the support they need during difficult times.

Additionally, many policies include vocational rehabilitation services. This component supports injured employees who may need to acquire new skills or adapt to different roles within their company, ensuring that both their health and career trajectory are safeguarded.

Lastly, workers’ compensation plays a crucial role in maintaining mental well-being by alleviating stress related to workplace injuries. With structured support systems in place, employees can focus on healing and returning to their roles when they are ready.

What Are the Obligations of Employers in NJ?

Employer obligations in New Jersey are straightforward yet critical. They include procuring appropriate workers’ compensation insurance policies and ensuring employees are aware of their rights under these policies.

Additionally, it’s imperative for employers to maintain open lines of communication regarding workplace safety regulations and injury reporting protocols. Prompt reporting and transparent communication not only fulfill legal obligations but also foster trust and transparency in the workplace.

How Can Employers Obtain Workers’ Compensation Insurance?

Navigating the acquisition of workers’ compensation insurance can appear daunting, but it doesn’t have to be. Employers have two primary routes: purchasing insurance from private carriers or qualifying as a self-insurer. Each has its advantages, and your choice should ultimately reflect your company’s size, structure, and risk tolerance.

Working alongside adept insurance advisors is a prudent approach. These professionals provide insights into market trends and the savings associated with various options. Such expert guidance can ensure that employers find the right coverage that aligns with both statutory requirements and employer values.

Conclusion: The Importance of Understanding Workers’ Compensation Insurance in NJ

Understanding workers’ compensation insurance in New Jersey is crucial for both employers and employees. It provides essential protection and ensures that everyone involved can feel secure in the workplace. By getting familiar with the requirements and benefits, you can make informed decisions that safeguard your business and support your workforce. To learn more about our offerings, feel free to visit BGES Group’s homepage.

BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders’ risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability, and group health.  Our commitment to you goes beyond the policies we provide. We are always just a call, text, or email away, ready to assist you, even on weekends. We understand the importance of your business and are here to help you navigate any insurance challenges.  

BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or whatever your issue. We can help!  We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, Logistics Companies, Manufacturers, Recyclers, and Truckers; we can help ANY tri-state business owner. We are considered “Preferred Agents” for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too.  

If you want to speak with us, call Gary Wallach at 914-806-5853, click here to email, or visit our website.
 
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

email: bgesgroup@gmail.com

website: http://www.bgesgroup.com

 

If you’re a contractor in New York, you already know how complicated—and expensive—insurance can be. Between strict labor laws, demanding project owners, and the constant risk of accidents, your business is exposed on many fronts. Contractors often ask the same questions about three key coverages: general liability, umbrella liability, and workers’ compensation.

Below, we’ve gathered 15 of the most common questions New York contractors have about these policies, along with clear answers to help you protect your business.

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General Liability Questions

1. What exactly does general liability insurance cover?

General liability protects your business if your work causes bodily injury, property damage, or personal/advertising injury to others. For contractors, this usually means injuries to third parties, damage to client property, or lawsuits related to your completed work.

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2. How does New York Labor Law affect my general liability?

New York’s Labor Laws 240, 241, and 200 make contractors and building owners liable for most construction-related accidents, especially falls from heights. Many insurers exclude or heavily restrict this coverage, which is why having the right policy is crucial.

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3. What is a “completed operations” exposure?

Once a project is finished, your liability doesn’t end. If your work later causes damage or injury (for example, faulty wiring leading to a fire), you could face a completed operations claim. Your policy must specifically include this coverage.

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4. Do subcontractors need to carry their own general liability?

Yes—without it, you’re fully responsible for their mistakes. Every subcontractor should provide a certificate of insurance naming you as an additional insured. Otherwise, their claims may fall back on you.

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5. How much general liability coverage should I carry?

Most New York contractors carry at least $1M per occurrence and $2M aggregate. But many project owners now require higher limits, which is where an umbrella policy comes in.

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Umbrella Liability Questions

6. What does an umbrella policy cover?

Umbrella liability sits on top of your general liability, commercial auto, and employers’ liability policies. It provides extra limits of protection if a claim exceeds the underlying policy’s limit.

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7. Why do contractors in New York often need umbrellas?

Because claim costs here are higher than almost anywhere else. With Labor Law lawsuits routinely reaching into the millions, a $1M general liability policy is often not enough. An umbrella ensures your business isn’t bankrupted by one big claim.

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8. How much umbrella coverage do I need?

It depends on your project size and contractual requirements. Many mid-sized contractors carry $5M, while larger firms may need $10M or more. GCs and owners often specify the required amount in contracts.

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9. Are umbrella policies all the same?

No. Some umbrellas exclude New York Labor Law coverage or have hidden restrictions. Always review the fine print—otherwise you might think you’re protected, only to find an exclusion blocks coverage when you need it most.

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10. Can an umbrella cover subcontractor work?

Yes, but only if the subcontractor is properly insured and your contract requires them to name you as an additional insured. Otherwise, your umbrella could end up paying for their mistakes.

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Workers’ Compensation Questions

11. Who needs to carry workers’ compensation in New York?

Any business with employees—even one part-timer—must carry workers’ comp. In construction, the rules are even stricter: subs and day laborers are often considered your employees for comp purposes if they’re uninsured.

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12. Are 1099 contractors covered by my policy?

If they work under your direction and do not have their own valid workers’ comp, the state may consider them your employees. If they get hurt, you could be responsible. This is one of the biggest areas of confusion (and surprise premium charges) for contractors.

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13. How are workers’ comp premiums calculated?

Premiums are based on payroll, job classification codes, and your company’s claims history. For contractors, rates vary depending on the trade—for example, carpentry is more expensive than clerical work. Insurers audit your records each year to verify payrolls and classifications.

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14. Can I reduce my workers’ comp costs?

Yes. You can:

• Properly classify employees and subs

• Maintain strong safety programs to reduce injuries

• Work with a broker who challenges unfair audit findings

• Consider a pay-as-you-go program to avoid big audit bills

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15. What happens if I don’t carry workers’ comp?

In New York, penalties are severe. You can face fines, stop-work orders, lawsuits, and even personal liability if an uninsured worker is injured. For contractors, operating without comp is a risk that can destroy your business.

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Why Contractors Choose BGES Group

Having the right policies is only part of the solution. You need a broker who understands New York construction inside and out—someone who knows the difference between a policy that looks good on paper and one that actually protects you in court.

That’s where BGES Group comes in.

We specialize in New York construction insurance—it’s not a sideline, it’s our focus. Contractors work with us because:

• We know the risks you face. Labor Law claims, subcontractor issues, audits—this is our daily world.

• We deliver personal, boutique-style service. You won’t be stuck with call centers or shuffled between departments. You’ll deal directly with someone who knows your account.

• We handle the details. From reviewing subcontractor certificates to making sure your umbrella covers Labor Law, we catch what others miss.

• We fight for you. Whether it’s negotiating premiums, fixing audits, or helping during a claim, we’re in your corner.

• We give peace of mind. Our contractors tell us they finally sleep better knowing their insurance program is solid.

While many agencies have become “factory-like” and impersonal, BGES Group still works the old-fashioned way: one contractor at a time, with care, speed, and expertise.

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Contact BGES Group Today

Don’t wait until a claim or audit exposes gaps in your coverage. Protect your company with the right liability and workers’ comp program designed specifically for New York contractors.

📞 Gary Wallach

BGES Group

Phone: 914-806-5853

Email: bgesgroup@gmail.com

🌐 Website: http://www.bgesgroup.com

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👉 New York contractors, you build projects that last. Let BGES Group build the insurance protection your business deserves.

New York contractors face a unique challenge that contractors in most other states do not: Labor Laws 240 and 241. These statutes have been called “Scaffold Laws” and are some of the strictest construction-related liability laws in the country. If you’re a contractor working in New York, it’s not just important to understand these laws—it’s critical to make sure your insurance is set up correctly to protect you from devastating financial loss.

In this article, we’ll break down the laws, provide real-world claim examples, explain how liability shifts depending on whether insurance and hold harmless agreements are in place, and show you how your Commercial General Liability (CGL) policy must be structured to ensure you have coverage. Finally, we’ll introduce how BGES Group can help you navigate these complexities when your insurance comes up for renewal.

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Understanding New York Labor Laws 240 and 241

• Labor Law 240 (Scaffold Law):

This law places absolute liability on property owners and general contractors when a worker suffers injury or death from a gravity-related accident, such as a fall from a height or being struck by a falling object. The key point here is that workers do not have to prove negligence. If proper safety devices (scaffolds, hoists, harnesses, ladders) were not provided, the owner and GC are automatically liable.

• Labor Law 241:

This statute relates to maintaining safe construction, demolition, and excavation sites. It requires that specific safety rules and standards be followed. Violations can result in liability for owners and contractors if an injury occurs.

Together, these laws are the backbone of New York’s worker protection system—but they also expose contractors and owners to lawsuits with little defense.

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Example Claims with Insurance and Hold Harmless Agreements in Place

Assume the following structure:

• Building Owner hires a General Contractor (GC).

• GC subcontracts work to several subcontractors.

• Insurance requirements and hold harmless/indemnification agreements are properly in place.

Claim #1: Roofer Falls from Scaffold

A roofing subcontractor’s employee falls from improperly secured scaffolding, suffering severe injuries.

• Under Labor Law 240, the Building Owner and GC are automatically liable.

• Because of the hold harmless agreement, the subcontractor’s insurance steps in to defend and indemnify the GC and Owner.

• The GC’s risk is greatly reduced, and the Owner’s liability is passed downstream.

Claim #2: Falling Object on Masonry Job

A mason’s employee is struck by a falling brick from above.

• Labor Law 240 applies since it’s a gravity-related injury.

• The subcontractor’s insurance and indemnity agreement provide defense for the GC and Owner.

• The GC’s CGL policy is protected from direct payout, keeping losses contained.

Claim #3: Excavation Cave-In

An excavation worker is injured when a trench collapses.

• Labor Law 241 applies because safety standards for excavation weren’t followed.

• The subcontractor’s policy responds due to contractual indemnity.

• The GC and Owner still face involvement but are financially shielded by proper agreements.

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Example Claims with No Insurance or Hold Harmless Agreements

Now let’s imagine the same accidents—but without insurance requirements or indemnity agreements.

Claim #1: Roofer Falls from Scaffold

The roofer’s subcontractor has no insurance and no indemnification agreement.

• The injured worker sues the Owner and GC.

• Without downstream protection, the GC’s and Owner’s insurance must defend and pay damages.

• The GC’s loss history is hit hard, leading to skyrocketing premiums or non-renewal.

Claim #2: Falling Object on Masonry Job

Same falling brick accident—but the subcontractor lacks insurance.

• The Owner and GC are held directly responsible.

• The GC’s CGL policy responds, but the entire judgment may fall on the GC.

• Out-of-pocket exposure is possible if policy limits are insufficient.

Claim #3: Excavation Cave-In

A trench collapse injures a worker, but the subcontractor is uninsured.

• The worker sues both the GC and Owner.

• With no indemnity in place, liability cannot be transferred.

• Both the GC and Owner face multimillion-dollar exposure, with insurance carriers possibly fighting over coverage.

Bottom line: Without proper insurance and hold harmless agreements, the GC and Owner become the ultimate insurers of every subcontractor’s workforce.

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Your Commercial General Liability Policy and Labor Law Coverage

Most New York contractors assume their CGL policy will protect them if a Labor Law 240 or 241 claim arises. Unfortunately, this is not always true. Many policies contain exclusions that strip away coverage for the very claims most likely to happen in New York construction.

To protect yourself, your policy must:

1. Cover Action Over Claims:

These are lawsuits where an injured worker sues the Owner or GC, and the Owner/GC then brings action against the subcontractor. If your policy has an “Action Over Exclusion,” coverage may be denied.

2. Avoid Employee Injury Exclusions:

If your policy excludes injuries to employees or subcontractors’ employees, you could be left paying damages personally.

3. Provide Broad Contractual Liability Coverage:

Limited contractual liability coverage may not respond to indemnity agreements you’ve signed with Owners or GCs. You need full contractual liability coverage so your insurance can defend and indemnify as promised.

In short: If your policy has any of these exclusions—Action Over, Employee Injury, or Limited Contractual Liability—you may have no coverage for a Labor Law claim.

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Why Contractors Choose BGES Group

More and more New York contractors are coming to BGES Group because we know the ins and outs of Labor Law exposure and contractor liability coverage. Unlike “factory-style” agencies that treat clients like numbers, BGES Group offers boutique-level service. We carefully review your policies, spot dangerous exclusions, and make sure your coverage is structured to protect your business—not leave you exposed.

When your policies come up for renewal, don’t just accept what your broker hands you. Labor Law claims are among the costliest exposures in the country. One uncovered claim could bankrupt your business.

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Contact BGES Group Today

BGES Group specializes in New York construction insurance. We know how to protect contractors from the hidden dangers of Labor Laws 240 and 241.

📞 Call Gary Wallach: 914-806-5853

📧 Email: bgesgroup@gmail.com

🌐 Visit: http://www.bgesgroup.com

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✅ Protect your business. Review your coverage. Don’t leave your future to chance.

Workers’ compensation insurance can be a confusing maze, especially if you’re navigating it in a bustling city like New York. Whether you’re an employer looking to protect your team or an employee wanting to understand your rights, this guide will walk you through the essentials of workers’ compensation insurance in NYC. Let’s dive into what you need to know to ensure you’re covered and complying with the law.

What Is Workers’ Compensation Insurance?

Workers’ compensation insurance is a type of insurance that provides medical benefits and wage replacement to employees who are injured in the course of employment. In NYC, it’s a legal requirement for most employers to carry this insurance to protect their workers. But what exactly does it cover? Essentially, it’s designed to cover medical expenses, rehabilitation costs, and a portion of lost wages for employees who suffer work-related injuries or illnesses. This safety net not only supports workers but also protects employers from potentially costly lawsuits. By understanding the fundamentals of workers’ compensation insurance, both parties can rest assured that there is a structure in place to handle unfortunate events without the added stress of legal proceedings.

It’s crucial to remember that not all injuries are covered under workers’ compensation. Only those injuries that occur as a direct result of job activities are eligible. For instance, if an employee slips and falls in the office or suffers from a repetitive strain injury due to their job, these would typically be covered. On the other hand, injuries sustained during a lunch break off-site might not be. Understanding these nuances can help both employers and employees navigate the complexities of workers’ compensation claims more effectively.

Why Is Workers’ Compensation Important in NYC?

Given the dense urban environment and diverse range of industries, NYC presents unique challenges and risks in the workplace. Workers’ compensation is crucial in mitigating these risks, offering protection to both employees and employers by ensuring workplace injuries are covered without the necessity of legal battles. This insurance acts as a buffer against unforeseen incidents, providing a structured mechanism for dealing with accidents in an organized and legal framework. In such a fast-paced city, having workers’ compensation is not merely a legal necessity but a benefit that promotes workplace harmony and confidence. Without it, the consequences could be financially devastating for both parties involved.

In an environment as dynamic as NYC, where construction, hospitality, and corporate sectors all coexist, the necessity for workers’ compensation becomes even more pronounced. The law mandates it to ensure not only safety but fairness, as employees expect and deserve protection while carrying out their duties. Employers also benefit from workers’ compensation as it protects them from potentially ruinous lawsuits and helps maintain a positive relationship with their workforce. Reducing the risk of workplace injury also translates to enhanced productivity and morale, which ultimately benefits the business long-term.

Understanding Your Rights as an Employee

As an employee in NYC, you have the right to medical care and compensation for work-related injuries or illnesses. It’s important to know how to file a claim and what benefits you are entitled to. This section will outline the steps you need to take if you are injured on the job. Most importantly, you should report your injury to your employer as soon as possible, ideally within 30 days of the incident. Timely reporting ensures that your claim is not only valid but also processed efficiently.

Once reported, the next step involves filling out the necessary forms, often provided by your employer or available through the state’s workers’ compensation board. This paperwork is critical, as it provides the information needed to process your claim accurately. Additionally, you are entitled to seek medical attention from any authorized healthcare provider, ensuring you receive the necessary treatment to facilitate recovery. Knowing these rights and procedures can significantly alleviate stress and confusion in the aftermath of a work-related injury, allowing you to focus on recovery rather than bureaucratic hurdles.

Responsibilities of Employers Under NYC Law

Employers in NYC are required to provide workers’ compensation insurance and ensure a safe working environment. This section will detail the obligations of employers, including obtaining sufficient coverage, reporting injuries, and cooperating with claims processes. It’s essential that employers remain compliant with the regulations set forth by the New York State Workers’ Compensation Board to avoid legal consequences and fines.

Moreover, employers need to actively foster a safe environment by conducting regular safety audits and implementing robust safety training programs. This not only helps in minimizing workplace accidents but also builds a culture of safety and trust within the organization. Additionally, employers are mandated to display the ‘Notice of Compliance’ visibly in the workplace, demonstrating their commitment to workers’ compensation obligations. Proactive involvement in these responsibilities not only signifies respect for their employees’ well-being but also leads to long-term operational efficiency and reduced costs associated with workplace injuries.

How to File a Workers’ Compensation Claim in NYC

Filing a claim can seem daunting, but knowing the right steps can simplify the process. Here, we explain how to file a claim, the necessary documentation, and the timelines involved to make sure your claim is processed smoothly. First, after reporting the injury to your employer, you’ll need to fill out Form C-3, which can be downloaded from the New York State Workers’ Compensation Board’s website. This form captures details about the incident, the nature of the injury, and the medical treatment you’ve received.

Make sure to submit this form promptly, as delays can complicate the claims process. Once submitted, it’s crucial to keep detailed documentation of all medical treatments, expenses, and communications with healthcare providers. Having thorough records ensures that you receive the appropriate compensation and assists in any potential disputes that may arise. Lastly, always check for updates on your claim status, and don’t hesitate to seek legal advice if you encounter any hurdles during the process. Staying informed and organized will ensure a smoother experience overall.

Common Misconceptions and FAQs

There are many misconceptions about workers’ compensation insurance. In this section, we address some of the most common questions and misunderstandings to help clarify how the system works and what employees and employers should be aware of. One prevalent misconception is that only catastrophic injuries are covered under workers’ compensation. In reality, even injuries that seem minor at first can qualify for compensation, as long as they were sustained in the course of employment.

Another frequent misunderstanding pertains to the eligibility criteria for filing a claim. Some employees believe that if the incident was their fault, they would not receive benefits. However, workers’ compensation is a ‘no-fault’ insurance system, meaning that even if you are responsible for your injury, you are still generally entitled to benefits, barring a few exceptions like injuries resulting from substance abuse or violation of company policies. By understanding these nuances, both employers and employees can better navigate the intricacies of workers’ compensation in NYC.

Bringing Clarity to Workers’ Compensation in NYC

Navigating workers’ compensation insurance in NYC doesn’t have to be overwhelming. By understanding the basics, knowing your rights and responsibilities, and staying informed about local regulations, you can ensure that you’re prepared and protected. Remember, knowledge is key to making informed decisions and ensuring peace of mind when it comes to workplace safety and financial protection. For more assistance or personalized guidance, don’t hesitate to reach out to us at BGES Group.

BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders’ risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability, and group health.  Our commitment to you goes beyond the policies we provide. We are always just a call, text, or email away, ready to assist you, even on weekends. We understand the importance of your business and are here to help you navigate any insurance challenges.  

BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or whatever your issue. We can help!  We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, Logistics Companies, Manufacturers, Recyclers, and Truckers; we can help ANY tri-state business owner. We are considered “Preferred Agents” for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too. 
 
If you want to speak with us, call Gary Wallach at 914-806-5853, click here to email, or visit our website.
 
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

email: bgesgroup@gmail.com

website: http://www.bgesgroup.com

 

In the world of construction, unpredictability is one of the few certainties. From unforeseen weather conditions to human error, the industry is rife with complications that can arise at any moment. For masonry businesses, having the right insurance not only safeguards against potential pitfalls but also ensures peace of mind. Let’s explore why masonry insurance should be a cornerstone of your business strategy.

1. Protecting Against Property Damage

Property damage is an inevitable risk in the construction world. Masonry insurance helps cover the costs of damage to buildings, machinery, and tools, ensuring your business continues to operate smoothly. In the construction industry, unexpected events can easily lead to costly repairs. Having financial protection means you aren’t left facing extensive bills when things don’t go according to plan. Additionally, insurance coverage can protect your investments and budget, allowing funds that would otherwise be spent on repairs to be used for business expansion and innovation.

2. Mitigating Liability Risks

Liability is a major concern in construction projects. Masonry insurance provides protection against third-party claims, safeguarding your business from significant financial losses. From slips and falls on your work site to accidental damage caused to neighboring properties, liability coverage is crucial. By ensuring your business is equipped with comprehensive liability insurance, you protect not just your financial interests but also the trust clients place in your operations, reducing the risk of costly lawsuits and potential business interruptions.

3. Ensuring Worker Safety

Worker accidents can lead to costly legal fees and compensation demands. Having insurance ensures you can provide the necessary support to your employees without jeopardizing your business finances. When employees see that their safety and wellbeing are prioritized through appropriate insurance policies, it fosters a sense of loyalty and dedication. Moreover, companies that prioritize worker safety often experience lower employee turnover rates, which contributes to a stable and experienced workforce.

In the unfortunate event of an accident, having the right masonry insurance means you can cover medical expenses, rehabilitation costs, and even loss of income for injured workers. This assurance not only helps maintain your business continuity but also reflects your commitment to employee welfare. In the end, a safe and supportive work environment is a key ingredient in building a resilient and successful masonry business.

4. Covering Equipment Loss or Damage

Masonry equipment is expensive, and any loss or damage can be financially devastating. Insurance helps cover the costs of replacements or repairs, keeping your projects on track. Equipment downtime can severely impact project timelines and client satisfaction, but with appropriate coverage, you can quickly overcome these obstacles. Protecting your assets with insurance is not just about financial recovery; it’s about maintaining reliability and professionalism.

5. Complying With Legal Requirements

Many jurisdictions require construction companies to have specific insurance policies. Staying compliant not only avoids legal penalties but also establishes your business as trustworthy and reliable. Compliance with legal regulations involves navigating the complexities of insurance requirements, which can vary widely depending on location and project specifics. By staying well-informed and insured, you not only avoid fines but also position your company as a vigilant and responsible player in the industry.

In addition to legal benefits, compliance enhances the reputation of your construction business. Clients and partners are more likely to engage with firms that demonstrate a commitment to meeting all legal and ethical standards. The assurance provided by maintaining these standards through appropriate insurance paves the way for greater business success and sustainability.

6. Safeguarding Against Natural Disasters

Floods, earthquakes, and other natural disasters can strike at any time. With masonry insurance, your business is protected against these uncontrollable adversities, minimizing financial risks. Preparing for worst-case scenarios builds resilience within your construction projects and ensures your ability to bounce back quickly from disruptions. By protecting your business from the impacts of weather-related incidents, you guarantee continuity and trust from clients who depend on your steadfast ability to deliver.

7. Enhancing Professional Reputation

Having comprehensive insurance shows clients and partners that your business is responsible and secure. This boosts your professional reputation and can lead to more contracts and business opportunities. In the competitive construction industry, companies must distinguish themselves with reliability and trustworthiness. Insurance demonstrates a proactive approach to potential risks, which is attractive to clients seeking stability in construction partnerships.

Moreover, securing your reputation doesn’t just attract new clients; it retains existing ones—a key factor in long-term business success. When clients feel secure in your ability to manage unforeseen events, they are more inclined to return for future projects, fostering loyalty and sustained growth. Through insured security, you build a network of satisfied partners who trust in your professional capabilities.

8. Offering Peace of Mind

Knowing that your business is protected from the various risks associated with construction work brings peace of mind, allowing you to focus on growth and success. Managing the many stresses of running a construction business becomes more straightforward with the reassurance that your assets, workforce, and liabilities are covered by reliable insurance. An uninterrupted focus on strategic development fosters innovation and competitiveness in a crowded market.

BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders’ risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability, and group health.  Our commitment to you goes beyond the policies we provide. We are always just a call, text, or email away, ready to assist you, even on weekends. We understand the importance of your business and are here to help you navigate any insurance challenges. 

BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or whatever your issue. We can help!  We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, Logistics Companies, Manufacturers, Recyclers, and Truckers; we can help ANY tri-state business owner. We are considered “Preferred Agents” for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too. 
 
If you want to speak with us, call Gary Wallach at 914-806-5853, click here to email, or visit our website.
 
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

email: bgesgroup@gmail.com

website: http://www.bgesgroup.com

Navigating the world of contractor insurance can be tricky, and unwitting mistakes can lead to unexpectedly high costs. Let’s dive into some common pitfalls and how to steer clear of them to keep those insurance premiums manageable.

1. Overlooking Necessary Coverage

Many contractors make the mistake of selecting insufficient coverage options in an attempt to save money, ultimately leading to higher costs in the event of unforeseen incidents. It’s crucial to understand that while the most basic policy might seem budget-friendly, it often lacks comprehensive protection. More robust plans may seem costly upfront but can prove invaluable during unexpected events. Contractors should carefully evaluate their projects’ scope and potential risks to choose the right level of coverage that precisely suits their needs.

Additionally, consulting with an insurance expert can provide insights into gaps in coverage that you may not have considered. This proactive approach can help avert long-term financial implications. Remember, the peace of mind that comes with knowing you are covered against all eventualities is priceless. Ensure you are not just weighing the initial costs but the potential future savings from adequate coverage.

2. Underestimating Project Risks

Failing to accurately assess the risks associated with a project can lead to insufficient coverage, resulting in higher costs when claims arise. Contractors may often overlook or downplay potential risks, assuming that accidents or mishaps are unlikely. However, even the most experienced professionals can encounter unexpected challenges. By conducting thorough risk assessments and accounting for all possible contingencies, contractors can secure the appropriate insurance that might otherwise seem unnecessary but is essential for comprehensive protection.

Utilizing risk management strategies can mitigate potential losses. This involves identifying and analyzing possible hazards and ensuring your insurance policy evolves with these considerations. Not only does this protect you financially, but it also contributes to safer and more efficient project management.

3. Ignoring Policy Reviews

Not regularly reviewing and updating your insurance policy can result in outdated coverage that may not reflect your current business activities. Business operations frequently change, and what was adequate coverage last year may no longer suffice today. Many contractors fall into the habit of auto-renewing policies without considering changes in their projects’ nature or scale. Scheduling annual policy reviews can help identify necessary adjustments to stay aligned with your operational needs.

Furthermore, reviewing policies can unveil opportunities for policy adjustments that lead to cost savings, such as removing redundant coverage or adding necessary protections that reduce the likelihood of costly lawsuits. Keep your policy’s fine print in check to ensure you’re effectively safeguarded from emerging risks.

4. Misclassifying Employees

Incorrectly classifying workers can lead to increased premiums and additional fines, as insurers heavily rely on these classifications to assess risk. The classification affects not only the premium you pay but also determines the kind of coverage your workers receive. Misclassification often happens unintentionally, owing to the complexity of industry-specific codes.

It is crucial to ensure that each employee is accurately classified according to their actual job roles and responsibilities. Regularly updating your employee classifications with your insurance provider helps avoid the common pitfalls of misclassification. Doing so not only saves money but also ensures compliance with legal standards and guarantees that your workforce is adequately protected. Investing in accurate classifications prevents large fees and potential legal liabilities.

5. Neglecting Safety Protocols

Failing to implement adequate safety measures not only increases the likelihood of accidents but can also raise your insurance costs due to high-risk assessments. Insurance providers consider the safety records of contractors when determining premiums. A business with frequent claims associated with accidents will inevitably face higher premiums.

Implementing and maintaining robust safety protocols can drastically reduce incidents and, in turn, lower insurance costs. Regular training sessions, safety audits, and compliance with regulations not only ensure worker safety but also improve your negotiation standing when seeking discounts from insurers. Embracing a culture of safety pays off in the long run by keeping premiums manageable and employees safe.

6. Missing Out on Discounts

Overlooking potential discounts for things like bundling policies or maintaining a claim-free record can prevent you from reducing overall insurance expenses. Many insurers offer discounts for policyholders who consolidate their coverage into a single plan, but this often goes unnoticed due to lack of proactive inquiry.

Additionally, maintaining a good safety record can unlock further discounts. Contractors should actively discuss with their insurance agents about available discounts and how to qualify. Remember, the negotiation process can reveal significant savings opportunities simply by demonstrating diligence in safety practices and claim management.

7. Poor Record Keeping

Disorganized records can complicate claims processes and might result in higher premium adjustments due to perceived increased risk. Maintaining meticulous records of all business transactions, safety incidents, employee classifications, and communications with insurers is essential.

Efficient record-keeping systems are invaluable in demonstrating to insurers that a contractor is responsible and risk-conscious. This not only aids in facilitating smoother claims processes but also positions the business to negotiate better insurance terms, reinforcing the perception of reliable risk management practices.

8. Failing to Compare Quotes

Sticking with the same insurer without shopping around can deprive you of more competitive rates that other providers may offer. The insurance market is dynamic and continually offers varied pricing and packages.

Periodically comparing quotes from different providers can reveal better deals or more suited coverage options. The effort of comparing should be seen as an investment in financial management, ensuring you stay ahead and make informed choices about your insurance costs.

9. Inaccurate Business Descriptions

Providing vague or incorrect information about your business operations can lead to inappropriate coverage options and inflated costs. Insurers base policy terms and pricing on your business description, so accuracy is crucial.

Take time to detailed documentation of all business activities, ensuring they are consistently updated with significant organisational changes. This ensures that insurance coverage is precisely tailored to your business needs, preventing unnecessary charges or gaps in coverage.

10. Overlooking Policy Exclusions

Not fully understanding what is excluded in your policy could result in unexpected expenses if claims fall outside of coverage. It’s vital to have a comprehensive understanding of your policy’s exclusions to avoid unpleasant surprises during a claim.

Carefully reviewing policy documents and seeking clarity from your insurance representative on any ambiguous clauses can preempt future disputes or unexpected costs. Knowing what is covered and excluded empowers contractors to make necessary adjustments or acquire additional coverage where needed, ensuring robust financial protection.

11. Delaying Claim Reporting

Promptly reporting claims is crucial. Delays can complicate the claims process and increase the likelihood of higher premiums. The immediacy of reporting demonstrates your commitment to transparency and can facilitate swifter claim resolutions, minimizing administrative headaches and further costs.

Many contractors underestimate the importance of timely claims submissions and its impact on their insurance relationship. Prompt reporting minimizes potential complications and indicates to insurers that you manage your risks responsibly, often resulting in more favorable premium assessments in the future.

12. Failing to Reassess Insurance Needs

As your business evolves, so do your insurance needs. Regularly reassessing and adjusting your policy is essential to avoid overpaying or being underinsured. Business growth or diversification often necessitates different or additional coverage to align with new risk profiles.

An annual insurance review, ideally with the guidance of an insurance advisor, helps identify changes in assets, liabilities, and future risk exposure. By consistently evaluating your insurance requirements, contractors ensure that they are neither over-protected nor exposed to uncovered risks, leading to optimized insurance costs tailored to their evolving business.

BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders’ risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability, and group health.  Our commitment to you goes beyond the policies we provide. We are always just a call, text, or email away, ready to assist you, even on weekends. We understand the importance of your business and are here to help you navigate any insurance challenges. 

BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or whatever your issue. We can help!  We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, Logistics Companies, Manufacturers, Recyclers, and Truckers; we can help ANY tri-state business owner. We are considered “Preferred Agents” for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too. 
 
If you want to speak with us, call Gary Wallach at 914-806-5853, click here to email, or visit our website.
 
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

email: bgesgroup@gmail.com

website: http://www.bgesgroup.com

Workers’ compensation insurance can be a bit of a mystery for many people. It’s important to clear up some of the common misconceptions to ensure everyone understands their rights and responsibilities. In this blog, we’ll unravel the myths surrounding workers’ compensation insurance.

1. Workers’ Compensation Covers All Injuries

A common misconception is that workers’ compensation covers every type of injury. In reality, it typically covers injuries that occur during the course of employment under certain conditions. For instance, if an employee is injured performing tasks that aren’t related to their job, such as playing sports during breaks, these injuries might not be covered. Coverage can vary significantly depending on the state and the specifics of the injury. Understanding these nuances is key to properly navigating your workers’ compensation plan.

Additionally, not all workplace-related injuries are eligible for compensation. For example, if an employee knowingly violates company policies and gets injured, the claim might be denied. State laws play a crucial role in defining eligibility, and employers are urged to maintain updated policies to reflect these laws. Always consult a legal representative if you’re unsure about a specific injury case.

2. Filing a Claim Means You’ll Lose Your Job

Many fear that filing a workers’ compensation claim will lead to losing their job. However, it is illegal for employers to retaliate against employees for filing a legitimate claim. Yet, this fear of retribution persists, causing stress and anxiety for employees considering filing a claim. The Occupational Safety and Health Administration (OSHA) ensures protection against retaliation, reinforcing that it’s unlawful for employers to fire or discriminate against employees exercising their rights.

In most cases, transparent communication with your employer about the incident and your intention to file a claim can alleviate tensions. Employers tend to respect adherence to the correct procedures, and seeing the claim through in a professional manner can reinforce the trust and respect in the employee/employer relationship. Keeping open lines of communication ensures that both parties are on the same page and misunderstandings are minimized.

3. You Can Choose Any Doctor for Treatment

While it would be nice to pick any doctor, most workers’ compensation policies require you to see a doctor from an approved list to ensure the treatment is covered. This can be frustrating for employees who have established trusting relationships with personal doctors not included on the list. It’s important to check your state’s rules as some might provide more flexibility allowing for your personal doctor if prior arrangements are made. This ensures that the employee receives appropriate care while the employer’s liability is minimized.

Failing to use an approved physician can lead to denial of your workers’ compensation claim, which is a risk many employees aren’t aware of. Conversely, some states allow a one-time change of doctor if the employee isn’t satisfied with initial treatment. Understanding these subtleties can make navigating the claim process smoother and more predictable for all parties involved.

4. Workers’ Compensation Is Automatic

Contrary to belief, workers’ compensation is not automatic. Employees must report injuries promptly and go through the claim process to receive benefits. Timing is critical, as delays in reporting can result in reduced benefits or denials. The process often requires meticulous documentation, from incident reports to medical evaluations, all contributing to the validity of the claim.

Employees might not realize the importance of keeping records even during what may seem like an informal incident. It’s always better to err on the side of caution by documenting any workplace injury, no matter how minor it may appear initially. Prompt and honest communication with employers also facilitates a smooth claim process, enabling quicker recovery and return to work.

Understanding the importance of this formal process not only protects the employee’s rights but also aligns with the employer’s policies, minimizing conflicts. Employers who clearly articulate their claim procedures can help streamline the process and reduce potential roadblocks. Once the claim is made, there’s a clear paper trail protecting both parties against future liabilities.

5. Independent Contractors Are Covered

Independent contractors often mistakenly believe they are covered. Usually, workers’ compensation only applies to employees, with specific criteria distinguishing employees from contractors. This difference hinges on several factors, such as the level of autonomy the worker has, payment schedules, and whether the worker supplies their tools. It’s crucial for both parties to clearly outline the nature of their relationship in any contract.

Sometimes, even with clear distinctions in contracts, disputes can arise about whether someone is an independent contractor or an employee. Courts may look at the reality of the working relationship over the contractual terms, so it’s important for workers and employers to be on the same page from the outset. Knowing this helps avoid nasty surprises and sets realistic expectations around coverage.

6. Pre-existing Conditions Disqualify You

While pre-existing conditions can complicate claims, it doesn’t necessarily disqualify you. If an on-the-job activity worsens the condition, you may be eligible for compensation. Such cases can be particularly complex, requiring detailed medical evidence to establish the work-related aggravation of the condition. Often, a doctor’s evaluation can reveal crucial insights into whether the workplace played a notable role in the exacerbation.

Medical history must be transparently disclosed when filing a claim related to a pre-existing condition. A consistent treatment history is invaluable in proving that the workplace activities were indeed linked to the aggravation of the condition. This is where accurate record-keeping makes all the difference, which is invaluable in supporting your claim and ensuring a fair assessment.

7. Workers’ Compensation Settlements Are Always Large

Many assume settlements are significant, but each case is unique. Settlements depend on the injury’s severity and other factors. Misleading depictions in media can contribute to this misconception, painting a picture of extravagant payouts when the reality is often more nuanced and individualized. The compensation structure often balances between fair restitution and economic feasibility for the employer.

It’s essential for employees to have realistic expectations when pursuing a claim. Understanding the types of benefits available, whether temporary or permanent disability, medical benefits, or rehabilitation, can help employees focus on recovery knowing that their livelihood is protected. Legal counsel might advise on the terms of settlement, ensuring that employees understand each component thoroughly before deciding.

8. Only the Injured Worker Benefits

While primarily benefiting the injured worker, workers’ compensation indirectly benefits the employer and the whole business by protecting against legal action. Offering workers’ compensation demonstrates that the company values its employees’ safety and welfare. This, in turn, fosters a more motivated workforce, reduces turnover, and builds a positive work culture.

Employers gain valuable insights from workers’ compensation claims, which can be pivotal in formulating safer workplaces. By analyzing claim reports, they can identify frequent hazards and rectify them, potentially preventing future incidents. This proactive approach not only minimizes company liabilities but also boosts overall employee morale, promoting a safe and productive working environment.

BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders’ risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability, and group health.  Our commitment to you goes beyond the policies we provide. We are always just a call, text, or email away, ready to assist you, even on weekends. We understand the importance of your business and are here to help you navigate any insurance challenges. 

BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or whatever your issue. We can help!  We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, Logistics Companies, Manufacturers, Recyclers, and Truckers; we can help ANY tri-state business owner. We are considered “Preferred Agents” for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too. 
 
If you want to speak with us, call Gary Wallach at 914-806-5853, click here to email, or visit our website.
 
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

email: bgesgroup@gmail.com

website: http://www.bgesgroup.com

 

Running a contracting business in New York is challenging enough without having to worry about whether your insurance agency is doing its job. Unfortunately, many contractors are unknowingly putting their business at risk because their agency is failing them in ways they don’t even realize.

If you’re tired of rising premiums, poor service, and mistakes that could cost you big at claim time, here are 10 things your insurance agency doesn’t want you to know — and how BGES Group is different.

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1. They Don’t Market Your Account at Renewal

When your insurance policy is up for renewal, you probably assume your agency is shopping your account to multiple carriers to find you the best pricing and coverage. The truth? Many agencies simply let your policy renew with the same company — even if you face a double-digit premium increase.

You could be missing out on better options that could save your business thousands of dollars annually.

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2. Your Account Executive is Overloaded

The account executive servicing your account might be managing 150 to 200 accounts at once. That means limited time for reviewing your policies, strategizing ways to lower your costs, or even answering your questions promptly. When your account is just one of hundreds, you’re not getting the attention you deserve.

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3. Constant Turnover of Account Executives

High turnover is common in the insurance industry. Your account executive today may be gone tomorrow. Each time someone new takes over, they have to learn your business from scratch — and in the meantime, details get lost, mistakes get made, and service quality suffers.

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4. Poorly Trained Account Executives

While account executives often know more than their clients, many are still undertrained. This lack of expertise can result in you getting subpar advice, missed coverage gaps, or policies that don’t truly protect you. A single oversight can expose your business to major financial loss.

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5. They Don’t Understand Your Policy Forms

Contractors often rely on their agencies to ensure that their insurance meets the requirements of each job contract. Unfortunately, many account executives don’t fully understand the forms attached to your liability policies.

Take “Blanket Additional Insured Coverage,” for example. You might think it covers all the parties required by each job contract — but that’s not always the case. You could find out at the worst possible time: when a claim arises, or when payment for your work is delayed because your coverage wasn’t correct.

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6. Slow Response Times

When you need help, you need it fast — whether it’s a certificate of insurance, advice about a claim, or clarification on your coverage. But with many agencies, getting someone on the phone can feel impossible. Emails may sit unanswered for hours, even days, leaving you frustrated and potentially jeopardizing your contracts.

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7. Unnecessary Policy and Service Fees

Some agencies quietly tack on thousands of dollars in policy and service fees. These fees are pure profit for the agency and do nothing to improve your coverage or service. Many contractors are paying far more than necessary without even realizing it.

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8. Your Account is Ignored Post-Renewal

For many agencies, once your policy is renewed, they won’t touch it again until the next renewal period. This “set it and forget it” approach means that important changes in your business or risk profile go unnoticed — leaving you exposed until something bad happens.

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9. Agencies Don’t Double-Check Policies

When your policies are issued, they need to be carefully reviewed for accuracy. Many agencies skip this step. Errors such as incorrect limits, wrong job classifications, or missing endorsements could leave you uninsured when you need coverage most.

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10. Incompetence Runs Rampant

It’s not pleasant to hear, but incompetence is widespread in the insurance industry. Many employees simply don’t have the experience, training, or commitment to handle your account effectively. The result? Frustration, higher costs, and unnecessary risk.

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There’s a Better Way – BGES Group

If you’ve experienced even a few of these problems, it’s time for a change. BGES Group specializes in contractor insurance and offers the exact opposite of what’s described above.

When you work with BGES Group, you get:
✅ Active marketing of your account at every renewal – We shop your policies with over 50 top carriers and programs to get you the best coverage and pricing.
✅ Personalized service – You work directly with Gary Wallach, who knows your account inside and out.
✅ Fast response times – Call, text, or email — even on weekends — and you’ll get the help you need quickly.
✅ Expert policy review – We check every policy and endorsement so you’re never surprised at claim time.
✅ No unnecessary fees – We focus on saving you money, not adding to your costs.

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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 represent over 50+ companies and offer the very best general liability and umbrella programs. Our coverages include:

• Property & Builders’ Risk
• Inland Marine
• General Liability & Umbrella Liability
• Commercial Auto
• Bid & Performance Bonds
• Workers’ Compensation & N.Y.S. Disability
• Group Health Insurance

We don’t just sell policies — we partner with you to protect your business, keep costs under control, and make sure you’re covered correctly.

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Workers’ Compensation Specialists

Are you unhappy with your workers’ compensation rates, company, or audits? Are you being canceled or having trouble getting coverage because of losses? BGES Group can help.

We have special programs for contractors, auto services, logistics companies, recyclers, and more. Our preferred program offers:

• Excellent pricing
• Long-term coverage stability
• Multi-state coverage
• Hassle-free annual audits

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Get in Touch

If you’re ready to work with an agency that cares about your business and fights for you, contact BGES Group today.

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

Like a trusted friend referring a good resource, take a moment to read BGES Group’s Google Reviews and see what other contractors are saying. You’ll quickly see why so many business owners trust us with their insurance.

Workers’ compensation insurance is one of the most important coverages for New York business owners. It protects employees by covering medical bills and lost wages when injuries occur on the job—and it protects employers by limiting lawsuits from workplace accidents.

Yet many business owners don’t fully understand how the rules work, especially when it comes to contractors, cash workers, and cross-state employment. Misunderstandings can lead to severe financial penalties, uncovered claims, and potential lawsuits.

Below are ten of the most common—and often misunderstood—questions about workers’ compensation insurance in New York, along with clear answers every business owner should know.

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1. Are independent contractors covered if they don’t have their own insurance?

Generally, independent contractors are not automatically covered under your policy. However, New York has very strict definitions of who qualifies as an “independent contractor.” If they are working under your direction, using your tools, and not operating an independent business of their own, the Workers’ Compensation Board may reclassify them as your employee. If they don’t carry their own valid workers’ comp insurance, you could be held liable.

Takeaway: Always obtain a certificate of insurance from independent contractors showing proof of coverage—or risk being responsible for their claims.

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2. Are day laborers covered if paid in cash?

Yes. The method of payment does not matter. If you hire someone to perform work—even for a single day—and they are injured, they are considered your employee under the law. Paying cash does not exempt you from workers’ compensation requirements. In fact, the Workers’ Compensation Board frequently targets cash payrolls for audits and penalties.

Takeaway: If you’re using day labor, make sure they are properly insured or run the risk of uncovered claims and significant fines.

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3. Are 1099 workers covered if they do not have insurance?

Much like independent contractors, 1099 status does not protect you if the worker is really functioning as an employee. The IRS and the New York Workers’ Compensation Board apply different tests, but if the worker is under your supervision and does not have their own workers’ comp, you will be treated as their employer.

Takeaway: If you issue 1099s, double-check that these workers truly qualify as independent. If not, you must provide coverage.

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4. If a company has their workers’ comp with the New York State Insurance Fund and the employee works in New Jersey for a couple of weeks, then is injured and files a claim in New Jersey because they live there, would they have coverage?

This is a tricky situation. Most New York workers’ comp policies—especially through the State Insurance Fund—only provide coverage for work in New York. If the employee was temporarily working in New Jersey and files their claim there, coverage may not apply. To avoid this problem, your policy should include Other States Coverage or a separate New Jersey policy.

Takeaway: If your employees ever work outside New York, talk to your broker about multi-state coverage.

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5. What happens if a worker gets injured, comes back to work the next day, then after 45 days disappears and 8 months later they file a workers’ comp claim directly with the Workers’ Comp Board?

New York law generally gives employees two years to file a claim. Even if they seemed fine after the injury, they can still file later. As long as they can demonstrate the injury was work-related and notify the Board, the claim may be valid.

Takeaway: Always document every workplace incident, no matter how minor. File a First Report of Injury with your carrier to protect your business in case of delayed claims.

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6. Are owners, partners, and members of an LLC automatically covered under workers’ comp?

No. In New York, sole proprietors, partners, and members of an LLC are not automatically covered. They must elect to cover themselves. This can be critical for businesses where the owner also performs physical work.

Takeaway: If you’re actively working in your business, strongly consider electing coverage for yourself.

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7. What are the penalties for not carrying workers’ compensation insurance in New York?

The penalties are severe. Businesses without coverage face fines of up to $2,000 for every 10 days of noncompliance. In addition, owners can be held personally liable for medical bills and lost wages of injured workers. Criminal charges are also possible.

Takeaway: Never let your workers’ comp lapse—even for a short period.

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8. If an employee is intoxicated or using drugs when injured, will workers’ comp still cover them?

In most cases, yes. Workers’ comp in New York is a no-fault system, which means benefits are generally paid regardless of who is to blame for the accident. The only exceptions are if the injury was intentional or caused by a deliberate attempt to harm oneself or others.

Takeaway: Do not assume intoxication disqualifies a claim. Carriers may reduce benefits in some cases, but coverage usually still applies.

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9. Can an employee sue their employer even if workers’ compensation benefits are provided?

Generally, no. Workers’ comp is designed to be the exclusive remedy for workplace injuries. However, employees may still sue if the employer failed to carry insurance or in rare cases involving gross negligence.

Takeaway: Having proper coverage protects you from lawsuits. Without it, you are exposed to both claims and lawsuits.

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10. Are volunteers covered under workers’ comp?

In most cases, volunteers are not covered, unless specifically included under the policy or required by law (for example, volunteer firefighters). However, if you “pay” volunteers in any way—cash, gift cards, stipends—they may be deemed employees.

Takeaway: Clarify with your carrier whether volunteers are included or excluded, and avoid offering payments that could trigger employee classification.

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Final Thoughts

Workers’ compensation is not just a legal requirement in New York—it’s a vital protection for your business. Misclassifying workers, ignoring cash labor, or failing to secure multi-state coverage can expose you to devastating claims and penalties.

By understanding how the system works and closing coverage gaps, you can protect both your employees and your company’s future.

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About BGES Group

At BGES Group, we are workers’ compensation insurance specialists covering New York businesses of all sizes and industries. Unlike large, factory-style agencies, we provide personal, boutique-level service that business owners love. We review your policies in detail, identify gaps, and make sure you’re fully protected while keeping costs manageable.

If you’re a contractor, small business owner, or company with workers in multiple states, you need an insurance partner who understands the complexities of New York workers’ comp. That’s us.

📞 Contact: Gary Wallach

📧 Email: bgesgroup@gmail.com

📱 Phone: 914-806-5853

🌐 Website: www.bgesgroup.com

When many contractors hear the term “auto liability,” they think it doesn’t apply if they don’t own company vehicles. Unfortunately, that’s not the case. Even if you don’t have trucks or vans titled in your company’s name, your business still faces serious auto-related exposures that can lead to costly claims. Contractors who overlook these risks can find themselves uninsured and exposed to lawsuits.

Below are 8 auto exposures every contractor should know about:

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1. Employee Use of Personal Vehicles for Business

If an employee drives their own car to pick up materials, visit job sites, or run errands for the company, your business can be held liable for an accident. Personal auto insurance may not provide adequate protection for business-related use, leaving your company vulnerable.

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2. Rented or Leased Vehicles

Sometimes a contractor rents a truck for a day to haul materials or equipment. If there’s an accident, the rental company will pursue you for damages. Without the right “hired auto” coverage, your company could end up paying out of pocket.

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3. Loading and Unloading

Even if your employee never drives, they may still be at fault during loading or unloading a vehicle. Dropping heavy equipment on a third party’s car or injuring someone in the process can trigger liability.

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4. Subcontractor Driving on Your Behalf

If you send a subcontractor to pick up supplies or transport materials and they cause an accident, your business could be named in the lawsuit. Courts often go after the deepest pockets—and that may be your company.

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5. Mobile Equipment That Hits the Road

Contractors often use skid steers, forklifts, or other mobile equipment that may cross a public street. Even if it’s not a traditional “vehicle,” once it’s on the road, it can trigger auto liability exposure.

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6. Job Site Visitors and Parking Lots

If you control a job site, visitors, delivery trucks, or vendors may park or maneuver vehicles on the premises. Accidents involving third parties can create liability for your company if negligence is alleged in how the site was managed.

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7. Transporting Employees

If your foreman drives crew members to a job site in his own vehicle and gets into an accident, your business may be pulled into the claim. Injuries could lead to both auto liability and workers’ compensation issues.

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8. Borrowed Vehicles

Sometimes a contractor borrows a vehicle from a friend, relative, or another company for a quick task. If an accident occurs, the owner’s insurance may not fully cover the claim, and your company could be responsible for the balance.

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Why This Matters for Contractors

Auto liability doesn’t disappear just because your business doesn’t own vehicles. The exposures above are real, frequent, and costly—and too many contractors assume they are covered when they are not. The good news is that with the proper hired and non-owned auto liability coverage, you can protect your company against these risks.

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Why Contractors Choose BGES Group

At BGES Group, we specialize in construction insurance and understand the unique exposures contractors face—auto liability included. Unlike “factory-style” insurance agencies that rush through your coverage, we take the time to review policies carefully, identify hidden gaps, and make sure your business is fully protected.

More and more contractors are turning to BGES Group because we know construction inside and out. Our goal is to help you avoid surprise claims, save money, and have the peace of mind that your insurance program actually works when you need it most.

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Contact BGES Group

If you’re a contractor and want a free review of your auto liability and overall insurance program, call us today. We’ll walk you through your exposures and help you make sure your company is protected the right way.

📞 Gary Wallach, BGES Group

📱 914-806-5853

📧 bgesgroup@gmail.com

🌐www.bgesgroup.com