How Labor Law Coverage Differs Between New York and New Jersey Contractors—and Why Liability Insurance Costs Less for New Jersey Contractors

When it comes to obtaining general liability insurance, New York and New Jersey contractors operate under different legal and regulatory landscapes. These differences, particularly regarding labor laws, greatly impact the cost of liability insurance. Contractors in New York face significantly higher premiums, largely due to the state’s stringent labor laws, notably Labor Laws 240 and 241. In contrast, New Jersey’s labor laws are more lenient, which leads to lower insurance costs for contractors.

Understanding Labor Law Coverage: New York vs. New Jersey

New York’s Labor Laws 240 and 241

New York’s infamous “Scaffold Law” (Labor Law 240) and Labor Law 241 impose absolute liability on contractors and property owners for gravity-related injuries, such as falls from heights. These laws do not allow the injured worker to be found at fault in most cases, making contractors and their insurers liable for nearly all workplace injuries related to height. As a result, the financial risk to insurance companies is much higher, leading to significantly higher premiums for contractors in New York.

Example 1: A New York contractor working on a high-rise construction project must have coverage for the risk that any worker injured from a fall can sue under Labor Law 240. Even if the contractor followed all safety protocols, they can still be held liable, which makes the cost of liability insurance far higher compared to New Jersey.

New Jersey’s More Balanced Liability Laws

In contrast, New Jersey law does not impose the same level of absolute liability for worker injuries as New York. Workers must prove negligence to hold a contractor responsible, meaning that in many cases, if the contractor can demonstrate that all reasonable safety measures were taken, they may avoid liability. This balanced approach lowers the financial exposure of contractors and, consequently, reduces the cost of liability insurance.

Example 2: A New Jersey contractor working on a similar construction project only faces liability if it can be proven that the contractor was negligent. If an employee falls from scaffolding but it is shown that the scaffolding was properly secured and maintained, the contractor may not be held liable. This significantly lowers insurance premiums compared to a similar project in New York.

Why Liability Coverage Costs More for New York Contractors

The key reason liability insurance is more expensive for New York contractors is the absolute liability imposed by Labor Laws 240 and 241. These laws expose contractors to lawsuits and compensation claims, even if the contractor or property owner wasn’t directly at fault. Insurers must account for this heightened risk, driving up premiums.

In contrast, New Jersey’s more balanced negligence-based system mitigates some of the liability for contractors, leading to lower insurance costs. New Jersey contractors are less frequently the target of high-cost lawsuits, which allows insurance companies to offer more affordable premiums.

Protect Yourself: Get a Quote from BGES Group

If you’re a contractor operating in the Tri-State area, it’s crucial to understand the difference in labor law coverage between New York and New Jersey and how it affects your liability insurance costs. With rates for New York contractors continually rising due to increased legal exposure, it’s wise to get a backup quote this year to protect against a large rate increase.

BGES Group, one of the Tri-State area’s construction insurance experts, can help you secure the best coverage at competitive rates. Whether you’re working in New York or New Jersey, BGES Group offers tailored insurance solutions to meet your specific needs.

Contact BGES Group today for a free consultation:

        •         Phone: 914-806-5853

        •         Emailbgesgroup@gmail.com

        •         Websitewww.bgesgroup.com

Don’t wait until your premiums skyrocket—reach out to BGES Group now and get ahead of any potential increases in your insurance costs.

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

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