In the world of construction, risk is everywhere — from on-site accidents to property damage, and from legal disputes to contract disagreements. This is why liability insurance is such a vital asset for every New York contractor. But having a policy in place isn’t enough. The details hidden within your policy forms and endorsements could either protect your business or leave you dangerously exposed.
Many contractors don’t realize that insurance requirements imposed by project owners, general contractors, and municipalities involve specific forms and endorsements added to their liability policies. Failing to understand these can delay jobs, lead to denied claims, or even breach contracts.
Let’s break down some of the most important forms New York contractors encounter — and explain why you need to pay attention to them.
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Additional Insured Forms for Ongoing Operations: With and Without Privity
An Additional Insured (AI) form adds another party (like a project owner, GC, or municipality) to your liability policy, extending coverage to them for claims arising out of your work.
Ongoing operations refers to incidents that occur while the work is being performed, but before the job is completed.
• With Privity: This form requires a direct written agreement (like a contract) between the contractor and the party requesting AI status. It limits who gets coverage to those you’ve signed agreements with. It’s often preferred by insurance carriers as it restricts exposure.
• Without Privity: This broader form allows AI coverage to any entity requiring it, whether you have a direct contract or not. It’s more favorable to project owners and GCs because it extends coverage even if the contractor hasn’t signed an agreement with them directly — increasing the potential liabilities for your insurance company.
Contractors need to know what type of form their policy includes, as project requirements will often specify one over the other.
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Additional Insured Forms for Completed Operations: With and Without Privity
Once a job is finished, liability doesn’t just disappear. Defective work or resulting injuries can lead to claims years later. That’s where completed operations coverage comes into play.
• With Privity: Again, only those with whom you have a written agreement are covered for completed operations as an additional insured.
• Without Privity: Offers broader coverage, extending AI status for completed operations to parties even without a direct contract.
It’s crucial to ensure your policy’s completed operations endorsement aligns with what’s required in your contracts. If a claim arises years after project completion and the AI status isn’t properly structured, your client could sue you directly — and your insurance might not respond as expected.
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Primary and Non-Contributory Language
Many contracts require a contractor’s insurance policy to be primary and non-contributory.
• Primary means your policy responds to a claim first, before any other insurance the additional insured might carry.
• Non-Contributory means your insurer cannot seek contribution from the additional insured’s insurance.
This provision ensures the additional insured’s policy is protected and not depleted by claims stemming from your work. If your liability policy lacks this endorsement, your client may refuse to let you on the job — or worse, you might find yourself personally responsible for defense and damages.
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Blanket Waiver of Subrogation: With and Without Privity
Subrogation is your insurance company’s right to recover money from a third party responsible for a loss after they’ve paid a claim. A waiver of subrogation prevents your insurer from pursuing such recovery against certain parties.
• With Privity: The waiver applies only to parties with whom you have a written agreement in place.
• Without Privity: A broader form where the insurer agrees not to seek recovery from any party requiring a waiver, regardless of a written contract.
Many project owners demand this as it reduces their potential liability. Make sure your liability policy includes a blanket waiver of subrogation, and clarify whether it’s with or without privity to avoid costly gaps.
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Per Project Aggregate
A per project aggregate endorsement modifies your general liability policy’s limit so that each individual project has its own separate aggregate limit for claims.
Without it, the total aggregate limit of your policy could be exhausted by claims from one project, leaving others without coverage. For contractors juggling multiple jobs at once, this could be financially devastating.
Clients and GCs often require per project aggregates to protect their projects from being affected by unrelated claims. If you’re bidding on municipal or large commercial jobs in New York, expect this requirement to appear.
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How BGES Group Can Help New York Contractors Stay Protected
Navigating the complexities of liability insurance endorsements and forms isn’t easy. That’s where BGES Group comes in.
BGES Group specializes in providing business insurance for contractors throughout New York, as well as New Jersey and Connecticut. They understand the unique requirements of the construction industry and stay up to date on what project owners, general contractors, and municipalities demand in insurance language.
Gary Wallach, head of BGES Group, brings years of experience to the table and works closely with contractors to:
• Ensure their liability policies contain the proper endorsements for ongoing and completed operations
• Secure primary and non-contributory status when required
• Obtain blanket waivers of subrogation with or without privity, as contractually demanded
• Add per project aggregate limits to meet large job specifications
• Educate clients about their insurance obligations before they sign contracts, preventing costly surprises
Whether you’re a small subcontractor or a large GC, BGES Group helps tailor insurance programs that meet contract requirements and protect your business from jobsite risks and legal exposures.
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Contact BGES Group Today
If you’re a New York contractor and want to be sure your insurance program won’t hold up your projects or leave you exposed to liability, reach out to BGES Group:
• Contact: Gary Wallach
• Phone: 914-806-5853
• Email: bgesgroup@gmail.com
• Website: www.bgesgroup.com
Don’t let unclear insurance language jeopardize your business or delay your next job. Partner with experts who understand your world and protect your future.