For contractors in New York, finding the right liability insurance for contractors can make all the difference between staying protected or facing severe financial and legal risks. The unique challenges of operating in New York’s construction industry—including strict Labor Laws and high litigation risks—mean that contractors need comprehensive and well-structured insurance coverage tailored to their needs.
This guide outlines the most critical coverages New York contractors should seek when purchasing liability insurance and explains how BGES Group, a leading construction insurance specialist, can provide the personalized service and expertise required to safeguard your business.
Critical Liability Coverages for New York Contractors
1. Liability Limits of $1 Million to $6 Million or More
Adequate liability limits are essential to protect against the high costs of claims related to property damage, bodily injury, or lawsuits. For New York contractors, a standard policy with $1 million per occurrence and $2 million aggregate may not be sufficient. Projects with higher risks or larger contract values often require limits of $5 million or $6 million, or even more, to ensure complete protection.
High-limit liability insurance is especially critical for contractors working on large-scale developments or public projects, where the potential for severe claims is significant.
2. Labor Law Coverage
New York’s Labor Laws 240 and 241 create a strict liability environment for contractors. These laws make contractors and property owners liable for certain worker injuries, even if the worker is partially at fault. Labor law coverage is a must-have for New York contractors to defend against costly lawsuits arising from falls, scaffolding incidents, or other worksite injuries.
Without labor law coverage, your business could face judgments reaching millions of dollars, significantly impacting your financial stability.
3. Contractual Liability Coverage
Contractors often enter into agreements that require them to assume certain liabilities, such as holding property owners harmless or covering additional insured parties. Contractual liability coverage ensures that these obligations are covered under your insurance policy, preventing gaps in coverage that could leave your business exposed.
This coverage is particularly important when working with subcontractors or on projects requiring compliance with stringent contractual provisions.
4. Blanket Additional Insured with No Privity Requirements
Many contracts require contractors to add property owners, general contractors, or others as additional insureds on their policies. Blanket additional insured coverage simplifies this process, automatically extending coverage without the need to name individuals or entities explicitly.
Policies that eliminate privity requirements ensure that coverage is extended regardless of a direct contractual relationship. Additionally, the coverage should apply to both ongoing operations (work currently being performed) and completed operations (work completed in the past).
5. Waiver of Subrogation with No Privity Requirements
A waiver of subrogation prevents your insurance company from pursuing claims against other parties involved in a project, such as property owners or general contractors.
To ensure seamless protection, contractors should look for a waiver of subrogation that:
• Does not require privity of contract.
• Applies to both ongoing and completed operations.
This type of waiver minimizes disputes and fosters better working relationships with project stakeholders.
6. Per Location Aggregate Coverage
For contractors working across multiple sites, per location aggregate coverage is essential. It ensures that the aggregate liability limit applies separately to each project or location rather than being shared across all jobs.
For example, if a contractor’s policy has a $2 million aggregate limit and the policy covers multiple projects, a single large claim could exhaust the limit. Per location aggregate coverage prevents this, providing dedicated limits for each site.
7. Primary and Non-Contributory Coverage
Primary and non-contributory coverage ensures that your policy responds first in the event of a claim and does not seek contribution from other insurance policies covering the same risk. This coverage is often a contractual requirement in construction projects, particularly for general contractors or property owners who want assurance that their insurance is secondary to the contractor’s policy.
Why BGES Group is the Right Partner for New York Contractors
When it comes to construction insurance, most agencies treat clients as numbers. That’s not the case with BGES Group. Unlike larger, impersonal brokers, BGES Group operates like a boutique mom-and-pop business, offering highly personalized service to meet each client’s unique needs.
What Sets BGES Group Apart?
1. Expertise in Construction Insurance: With years of experience specializing in New York construction insurance, BGES Group understands the challenges contractors face and how to address them effectively.
2. Tailored Policies: They don’t believe in one-size-fits-all solutions. Instead, BGES Group customizes policies to ensure comprehensive protection at competitive rates.
3. Exceptional Service: Clients work directly with seasoned insurance professionals who are committed to providing personalized attention and fast, effective solutions.
BGES Group doesn’t just sell insurance; they become your partner, ensuring your business is protected and that you understand your policy’s benefits and requirements.
Contact BGES Group Today
If you’re a New York contractor looking for comprehensive liability insurance for contractors, BGES Group can help. Whether you need high liability limits, labor law coverage, or specialized endorsements like blanket additional insured or waiver of subrogation, BGES Group has you covered.
• Website: bgesgroup.com
• Phone: 914-806-5853
• Email: bgesgroup@gmail.com
Don’t wait until it’s too late to secure the protection your business needs. Contact BGES Group today and experience the difference of working with a true construction insurance specialist.
Key Takeaways
• Contractors in New York must prioritize coverages like labor law, high liability limits, blanket additional insured endorsements, and waiver of subrogation to stay protected.
• Comprehensive policies should include per location aggregate and primary and non-contributory coverage.
• BGES Group offers tailored solutions and boutique-like service for New York contractors, ensuring peace of mind and optimal coverage.
For construction insurance, partnering with BGES Group means more than just buying a policy—it means gaining a trusted ally in protecting your business. Reach out to BGES Group today to learn how they can help your construction company thrive.