Winning a construction project in New York is more competitive than ever. Contractors invest countless hours preparing estimates, meeting with prospective clients, and submitting bids—all with the hope of securing the next job.
Unfortunately, many contractors lose opportunities not because of their pricing, experience, or workmanship, but because their insurance program doesn’t meet the project requirements.
Today’s general contractors, developers, municipalities, and property owners are paying closer attention to insurance than ever before. One missing endorsement or improperly issued certificate of insurance can delay a project—or worse, cause a contractor to lose the job altogether.
Here are five of the most common insurance mistakes New York contractors make and how you can avoid them.
Mistake #1: Assuming a Certificate of Insurance Is Enough
A Certificate of Insurance (COI) is one of the most requested documents in the construction industry. However, many contractors mistakenly believe that simply providing a certificate satisfies every insurance requirement.
It doesn’t.
A certificate only summarizes certain aspects of your insurance coverage. It does not amend your policy or grant additional rights to another party.
Many project owners require specific endorsements that must actually be attached to your insurance policy.
Examples include:
- Additional Insured endorsements
- Primary and Non-Contributory wording
- Waiver of Subrogation endorsements
- Completed Operations coverage
- Specific policy limits
If your policy does not include the required endorsements, a certificate alone will not satisfy the contract requirements.
Before bidding any project, review the insurance specifications carefully and make sure your policy can comply.
Mistake #2: Carrying the Wrong Additional Insured Endorsement
One of the most common reasons certificates are rejected is because the wrong Additional Insured endorsement is being used.
Different projects require different forms depending upon the contract language and the work being performed.
Some owners require coverage during ongoing operations.
Others require completed operations coverage after the project has finished.
If the proper endorsement isn’t attached to your policy, you may not satisfy the contract requirements, delaying the project or forcing you to purchase additional coverage at the last minute.
Understanding which endorsement applies to your operations is critical.
Mistake #3: Ignoring Primary and Non-Contributory Requirements
Many construction contracts require your liability insurance to respond on a Primary and Non-Contributory basis.
What does that mean?
Simply put, your insurance company agrees to respond first before another party’s insurance contributes to the loss.
Without this endorsement, your insurance program may not comply with contractual obligations.
General contractors and property owners routinely verify this language before allowing work to begin.
If your insurance cannot satisfy these requirements, you may find yourself unable to start the project until the issue is resolved.
Mistake #4: Failing to Properly Manage Subcontractor Insurance
Hiring subcontractors can increase productivity and profitability—but it also increases your exposure if their insurance isn’t properly managed.
Too many contractors simply collect a Certificate of Insurance and place it in a file.
Unfortunately, that’s often not enough.
Every subcontractor should ideally provide:
- A current Certificate of Insurance
- A written Insurance and Hold Harmless Agreement
- Additional Insured status naming your company
- Primary and Non-Contributory wording
- Waiver of Subrogation
- Workers’ Compensation coverage
- Appropriate liability limits
- Proof that coverage remains in force throughout the project
If a subcontractor’s insurance is inadequate, your own insurance may be forced to respond following a claim.
Taking a proactive approach before work begins can help avoid expensive disputes later.
Mistake #5: Waiting Until Renewal to Review Your Coverage
Many contractors only speak with their insurance agent once a year—when the renewal invoice arrives.
By then, it’s often too late.
Construction businesses evolve constantly.
Perhaps you’ve:
- Added employees
- Purchased new equipment
- Begun performing different trades
- Expanded into neighboring states
- Started working on larger commercial projects
- Increased payroll
- Purchased additional vehicles
If your insurance hasn’t evolved with your business, you could have significant coverage gaps.
An annual insurance review—preferably 60 to 90 days before renewal—provides time to evaluate your operations, compare carrier options, and identify hidden exclusions or endorsements that may affect future claims.
Why Insurance Requirements Continue to Increase
Insurance requirements have become more demanding over the past several years.
Several factors have contributed to this trend:
- Rising construction claim costs
- Larger jury verdicts
- Increased litigation
- New York Labor Law exposures
- More restrictive underwriting guidelines
- Fewer insurance companies willing to insure contractors
As a result, project owners want greater assurance that every contractor working on their project has appropriate insurance protection.
Being prepared with the proper insurance documentation demonstrates professionalism and helps build confidence with prospective clients.
Don’t Let Insurance Delay Your Next Project
Imagine winning a project only to discover your certificate has been rejected.
Now you’re scrambling to contact your insurance agent, request endorsements, revise certificates, and negotiate with the project owner while your competitors are already mobilizing.
These situations happen every day.
Having an insurance professional who understands New York construction requirements can make the difference between starting work on schedule and losing valuable time—or even losing the contract entirely.
A Strong Insurance Program Is a Competitive Advantage
Insurance should never be viewed simply as an expense.
It is an important part of your company’s reputation.
General contractors appreciate subcontractors who can quickly provide compliant certificates, endorsements, and documentation without repeated requests.
When your insurance program is well organized, you create confidence that carries over into every aspect of your business.
That confidence can help you build stronger relationships, win repeat business, and position your company as a reliable contractor.
How BGES Group Can Help
At BGES Group, we specialize in insurance solutions for New York contractors. We understand the unique challenges construction businesses face in today’s increasingly complex insurance market.
With more than 45 years of insurance experience, we work closely with contractors to review their current insurance program, identify potential coverage gaps, explain policy endorsements in plain language, and help ensure their coverage aligns with the insurance requirements commonly found in construction contracts.
Whether you need Commercial General Liability, Workers’ Compensation, Commercial Auto, Inland Marine, Umbrella Liability, Builder’s Risk, or specialized contractor insurance, BGES Group works with a wide range of highly rated insurance carriers to help find solutions that fit your business.
Our goal is simple: help contractors protect their business, remain compliant with project requirements, and focus on what they do best—building.
If you’d like a second opinion on your current insurance program or want to ensure your policies will meet the requirements of your next project, we’d be happy to help.
Contact Information
Gary Wallach BGES Group
📞 914-806-5853 📧 bgesgroup@gmail.com 🌐 www.bgesgroup.com
Disclaimer: This article is intended for general informational and educational purposes only and should not be construed as legal or insurance advice. Insurance policies vary by carrier, policy language, endorsements, exclusions, and the facts of each individual claim. Contractors should review their insurance policies carefully and consult with a qualified insurance professional or legal advisor regarding their specific insurance needs and contractual obligations.