Workers comp insurance

New York Contractors Liability Insurance: Know What Coverage Your Liability Policy Provides – It’s Important To Avoid an Uncovered Claim

In the bustling construction industry of New York, where skyscrapers reach for the clouds and projects seem never-ending, contractors face numerous challenges. One essential aspect often overlooked is liability insurance. Understanding the ins and outs of New York contractors liability insurance, especially when it comes to coverage for subcontractors, can make or break your business’s financial security.

Coverage for Subcontractors:

Subcontractors are a vital part of most construction projects. However, relying on them without proper insurance coverage can expose your business to substantial risks. To safeguard against this, insurance liability companies often attach specific requirements to ensure subcontractors carry minimum liability limits and certain coverages. Failure of  subs to carry what your insurance company requires may cause denial of a claim.

The Consequences of Inadequate Coverage: In the construction world, accidents can happen despite the strictest safety measures. In the event of an incident due to a subcontractor’s negligence, having inadequate coverage can be devastating. This is where these insurance clauses come into play.

1. Standard Independent Coverage: Some liability policies offer standard independent coverage, which is the most lenient form of protection. This means that if a subcontractor fails to meet the minimum coverage requirements, the contractor is still covered, but there may be some financial repercussions.

2. Soft Hammer Independent Contractors Clauses: Others have what is known as soft hammer independent contractors clauses. In this scenario, if a subcontractor doesn’t meet the specified coverage and limits, the contractor is still covered, but they could be responsible for paying a sizable deductible and may face higher insurance premiums as a result.

3. Hard Hammer Independent Contractor Clause: The most restrictive of all is the hard hammer independent contractor clause. In this case, if a subcontractor fails to carry the minimum coverage requirements, there will be no coverage in the event of a claim. This can put a significant financial burden on the contractor and jeopardize the entire project.

Navigating the Complex World of Liability Insurance: With so much at stake, New York contractors need a trusted partner to navigate the intricate web of liability insurance. This is where the BGES Group steps in to provide essential support and guidance.

How BGES Group Can Help: The BGES Group specializes in assisting New York contractors in managing their insurance needs effectively. We offer programs designed to help screen subcontractor insurance to ensure they meet the necessary requirements, thereby minimizing risks for your business.

Our team of experts understands the unique challenges faced by contractors in the New York construction industry. We can help you decipher the complexities of liability insurance, ensuring that both you and your subcontractors are adequately protected.

In conclusion, New York contractors liability insurance is a crucial aspect of safeguarding your business in the construction industry. Understanding the varying degrees of coverage for subcontractors and the associated clauses is essential for making informed decisions. Whether your policy has a standard independent coverage clause (which almost none do), a soft hammer clause, or hard hammer clause, the key is to ensure that your subcontractors meet the minimum coverage requirements to avoid potential financial disasters. With the assistance of the BGES Group, you can confidently navigate the insurance landscape, protecting your business and securing its future in the dynamic world of New York construction.

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, located in Larchmont, N.Y. are New York Construction Insurance Specialists that represent 50+ companies and all the BEST general & umbrella liability programs!  We offer every coverage you need including property, builders risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability and group health.  We are extremely responsive, responsible, trustworthy, fast, minimize your insurance headaches, we don’t charge ridiculous policy or service fees and when you call, text or email, whatever time of day, even weekends, we are ARE THERE to help YOU! 

BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being cancelled, losses causing difficulty getting coverage, in the middle of an audit dispute, payrolls misclassified, whatever your issue, we can help!  We have special programs for: Auto Service, Contractors (especially New York), Limousine Services, Logistic Companies, Manufacturers, Recyclers, Truckers, we can help ANY tri-state business owner.  We are considered “Preferred Agents” for this one program that if we can get you in, their pricing is excellent, offers long-term coverage stability and can cover multi-state operations. Program takes the hassle out of doing annual audits 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.

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



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