Do You Have Proper Protection Against Subcontractor Liability Claims?

Many contractors sub work to other contractors and believe they have coverage under their own General & Umbrella Liability policies.  But do they?

It’s important to understand what your insurance policies require in order to afford coverage for claims caused by subcontractors.  You can’t plead ignorance at time of claim, insurance companies WILL NOT PAY!

Most contractors rely on their insurance brokers to make sure they’re covered.  The reality is many brokers, once they sell their policies, do not stay on top of client’s to make sure they have the proper paperwork from each sub.  They do not have the time to do so.  There is a way though to get this done, not by you, but by farming it out to someone like my company. Interested, call Gary Wallach at 914-806-5853.


If you are a New York contractor, your Commercial General Liability and Commercial Umbrella &/or Excess Liability policies usually have very strict requirements if they are to cover subcontractor accidents.  Failure to be in FULL COMPLIANCE WILL result in declination of a claim.

Many contractors have their liability policies with “Surplus & Excess Lines Carriers.”  Most policies have “Hammer Clauses” as part of the contract. Want to be covered in the event of a subcontractors accident?  It is CRITICAL you understand what’s in your policy regarding subcontractors insurance requirements.

In simple terms, “Hammer Clauses” require you to get, before work starts, the following:

  1. A written, signed and dated “Subcontractor Hold Harmless and Insurance Agreement” incorporating a hold harmless provision and outlining the coverages and limits required of subs.  CONTRACTOR BEWARE!  Due to the cost of New York contractor liability insurance, a large percentage of subs carry inferior coverage and are NOT in compliance with YOUR insurance requirements.  In the event of a claim, YOU WILL NOT HAVE COVERAGE UNDER YOUR POLICY FOR ACCIDENTS CAUSED BY SUBS!

  2. Obtain a “Certificates of Insurance” from each subcontractor including:

    1. Your company being listed as an “Additional Insured.”

    2. Their being a “Waiver of Subrogation” in favor of your company.

    3. Your sub evidencing “Primary and Non Contributory Clause” in their policy.

    4. Specific coverages subs need to carry: i.e. “Contractual Liability,” “Labor Law Coverage, etc.

Addressing the above seems easy but it’s not.  Contractors don’t understand the technicalities of insurance.  They are in the business of building.  The reality, most are not in compliance with their policy requirements and better hope they never have a claim because they if they do, they’ll probably get knocked out of business!

If you are concerned about having the right coverage for subcontractors, we will be glad to review your policies for FREE.  If you need a sample “Hold Harmless and Insurance Agreement,” we can give you one for FREE!  Of course we are not lawyers so it will have to be reviewed by your attorney.  We are glad to give it to you though.

So Who Are We?  About The BGES Group:

  1. We are one of tri-state’s (located in Westchester County, NY so New York contractors are our main clients) “Construction Insurance Specialists.”

  2. We offer “REALLY GOOD” construction insurance programs. Our pricing is VERY COMPETITIVE and we offer REALLY GOOD POLICIES TOO!

  3. We can save you a lot of money. We just saved a NYC contractor $100,000 on their GL & Umbrella premium; A Queens contractor had a $3 million Umbrella, paying $103,000.  We reduced premium to $78,000 and increased limit to $5 million; Upstate demolition contractor was paying $50,000+ for a $3 million Umbrella, we got them a $5 million Umbrella for $23,000.

  4. We offer boutique service. You WILL ALWAYS get us when you need us.

  5. We get the job done that others can’t.

  6. We have great relationships with insurance companies so we can get things done that a lot of brokers can’t!

  7. Every year we review your account and if we feel we can get you better coverage or pricing we market your account and DO NOT just let it renew with the same companies, year in, year out.

  8. We are very trustworthy

  9. We are very reliable

  10. You want to work with someone whose always helpful and there for YOU? Who are some of the most reliable people you’ll ever want to deal with? Who when they say something they do what they say?

If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.

Here’s What People Have to Say About Us:

Sarah S.

Gary is a considerate and honest guy. I have nothing but respect for him and 5 stars isn’t enough.

Nick S.

Over 20 years of excellent relationship that has met all our insurance needs.

Steve S.

My previous Workers Comp insurer was always trying to reclassify employees to put them in higher risk groups to raise the premium (despite no claims in over 5 years). Broker at the time wasn’t helping. Gary was recommended by a friend and did a phenomenal job. Found new insurer for less money who then, a year later, further reduced premium after the audit! I’m now paying 40% less than I used to and only 1/4 of what my old insurer wanted to jack the rate to.


Gary is a great, responsible, professional…someone you can rely on. I would highly recommend him.

George K.

Since I transferred my insurance policy to BGES Group I have saved a lot on the rates and service is a first class. Always get immediate response to all my needs. It’s a A Plus from me.

Elena E.

My broker, Gary Wallach, is the BEST!  He’s professional and a pleasure to deal with. Always has the answers for me and is quick to respond to my emails and phone calls. This is one reason I remain a loyal BGES Group customer. Good Rates on all my insurance needs too!

If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.

BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Workers Compensation InsuranceWorkers Compensation Premium Recovery, New York State Disability, Group Health, Life insurance, Personal lines and Identity Theft.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 50+ insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages. We can help contractors set up proper risk transfer. We offer extensive information about insurance markets, coverages, risk transfer, subcontractor screening and numerous ways to lower your insurance costs.

BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you money; 2) Finding a new company; 3) Replacing coverage when you are being cancelled or non renewed; 4) Workers Compensation Audit disputes;  5) Lowering high experience modifications factors; 6) Misclassification of payrolls; 7) Lowering or eliminating renewal deposits;  8) Getting coverage when you’ve been without for a few months; 9) Covering multiple states under one policy; 10) Eliminating 10% service or policy fees; 11) Timely issuance of certificates; 12) Always being able to get someone on the phone when you need to; 13. Finding you a new payroll/workers compensation plan.  We represent many and know who offers excellent service.

If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.

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



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