In the fast-paced, high-risk world of New York construction, having the right liability insurance can mean the difference between staying in business or going bankrupt after a single mishap. Whether you’re building skyscrapers in Manhattan or remodeling homes in Westchester, liability insurance is not optional — it’s essential. But not all policies are created equal, and one wrong move can cost you time, money, or your reputation.
Here are the 5 dos and don’ts every New York contractor should know before buying liability insurance — straight talk that could save your business.
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1. DO Understand What General Liability Insurance Covers
General liability insurance is your first line of defense against claims for bodily injury, property damage, and even legal costs. It covers things like:
• A client tripping over your tools and getting injured.
• Damage to a client’s property during a job.
• Legal fees if you’re sued over faulty workmanship (depending on the policy).
Why it matters: Many contractors assume they’re covered for everything just because they have “general liability” — but not all policies include the same protections. Read the fine print and work with a broker who knows construction.
DON’T assume one-size-fits-all coverage is enough.
Each job site is different, and your insurance should reflect that. Don’t rely on a basic plan that may exclude crucial coverages like subcontractor-related claims or damage to rented equipment.
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2. DO Choose an Insurance Company That Knows Construction
Insurance is a specialized game — and so is construction. A company that doesn’t understand the risks contractors face may miss important coverage details, or worse, deny claims over fine-print loopholes.
DON’T buy from a generalist or online-only broker.
Those “instant quotes” may look attractive, but they don’t come with real-world advice or guidance. If your broker doesn’t know the difference between an Acord 25 and Acord 855 form, you’re in trouble. In New York especially, compliance and certification requirements can be complex and ever-changing. You need someone who keeps up.
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3. DO Verify That Your Policy Meets New York’s Insurance Requirements
New York is one of the strictest states when it comes to contractor insurance requirements — especially in NYC. You’ll often need:
• $1M per occurrence / $2M aggregate general liability minimum.
• Workers’ comp and disability insurance if you have employees.
• Additional insured endorsements for property managers, landlords, and developers.
• Waivers of subrogation.
• Primary and non-contributory language.
DON’T wait until the last minute to get these documents.
Many contractors lose jobs because they can’t provide proper insurance documentation in time. Make sure your broker can issue certificates fast and understands exactly what your clients need.
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4. DO Know the Difference Between Claims-Made and Occurrence Policies
This is one of the most overlooked — and misunderstood — aspects of liability insurance. Here’s a quick breakdown:
• Occurrence policies cover claims based on when the incident happened — even if the claim is filed years later.
• Claims-made policies only cover claims filed while the policy is active (or within a specific reporting period).
DON’T buy a claims-made policy unless you fully understand the risks.
They’re usually cheaper, but if you cancel or switch insurers without buying “tail coverage,” you could be left completely unprotected against past work. For construction work with long liability tails (like structural issues), occurrence policies are usually safer.
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5. DO Factor in Subcontractors and Additional Insureds
If you use subcontractors — and most contractors do — make sure your policy includes subcontractor coverage and that you collect Certificates of Insurance (COIs) from all of them. Also, make sure your policy has the right language for naming third parties as additional insureds — which is often required by clients, landlords, or GCs.
DON’T assume your subcontractors’ insurance automatically protects you.
If a subcontractor causes damage or injury and isn’t properly insured, the claim could fall back on you. Worse, your insurer could deny the claim if your policy excludes work done by uninsured subs. Always verify and document coverage from everyone on site.
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Bottom Line: Get Help From Experts Who Know the Game
Buying liability insurance as a contractor in New York isn’t just checking a box — it’s a strategic business decision. If you don’t want to spend hours sifting through legalese and hoping you’ve got the right coverage, partner with people who do this every day.
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BGES Group: Construction Insurance Is What We Do
At BGES Group, we specialize in construction insurance for contractors in New York, New Jersey, and Connecticut. With over 30 years of experience, we’ve seen it all — and more importantly, we know how to protect you from it all.
We’re not a call center. We’re real people who answer the phone, listen to your needs, and get you insured fast. We’ll review your current policy for free, identify gaps, and help you get better coverage — often for less money.
Whether you’re a GC, electrician, plumber, painter, roofer, or remodeler — if you work in the Tri-State Area, you need a team who knows how to keep you compliant, covered, and competitive.
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Call BGES Group Today
Gary Wallach – Construction Insurance Specialist
Phone: 914-806-5853
Email: bgesgroup@gmail.com
Website: www.bgesgroup.com
Don’t wait for a claim to find out you’re underinsured. Get peace of mind today — call BGES Group and let us get to work protecting your business.