New York is one of the toughest states in the country for contractors when it comes to business insurance. One major reason is Labor Law 240/241, better known as the Scaffold Law. This unique law places absolute liability on contractors and property owners for gravity-related accidents—falls from heights or falling objects—even if the worker was partially or fully at fault.
Unlike most states where comparative negligence applies, in New York, if a worker is injured in a fall, the contractor and property owner are almost always responsible. The result? Higher claims, more lawsuits, and skyrocketing insurance premiums. For contractors, understanding how this law impacts general liability coverage is critical to staying in business.
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How the Scaffold Law Impacts Contractor General Liability Rates
Insurance companies know that New York’s Scaffold Law leads to frequent, costly claims. Jury awards often run into the millions of dollars. Because of this:
• General liability premiums are much higher in New York compared to other states.
• Many carriers will not write coverage at all for contractors working in the five boroughs.
• Some insurers impose strict underwriting guidelines, requiring detailed safety programs and strong contractual risk transfer with subcontractors.
For a contractor, this means insurance costs can easily be one of your largest business expenses—sometimes more than payroll or equipment financing.
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Exclusions That Can Leave Contractors Exposed
Even when you secure general liability coverage, you need to carefully review the policy exclusions. Insurance carriers often use endorsements to limit their exposure under the Scaffold Law. If you’re not careful, you may think you’re covered when you’re not. Here are three of the biggest exclusions New York contractors must watch for:
1. Height Restrictions
Some policies exclude coverage for work above a certain number of feet—often two stories or 15 feet. This type of exclusion is devastating for roofers, scaffold erectors, steel workers, and any contractor involved in multi-story buildings. A single uncovered claim could bankrupt a business.
2. Employee Injury Exclusions
General liability insurance is designed to cover third-party claims, not injuries to your own employees—that’s what workers’ compensation is for. However, insurers sometimes broaden this exclusion, removing coverage for injuries to employees of subcontractors or anyone considered an employee by law. Under the Scaffold Law, these exclusions can leave contractors without protection when a subcontractor’s worker files a claim.
3. Action Over Exclusions
One of the most dangerous endorsements contractors face in New York is the Action Over Exclusion. This eliminates coverage for lawsuits brought by injured employees or subcontractor employees who sue an owner, developer, or general contractor—and then that party brings action “over” against your company.
Here’s why it matters:
• Scaffold Law claims are almost always action over claims.
• Even if you have workers’ comp, an injured worker can sue the owner or GC, who then brings you into the lawsuit.
• If your policy has an action over exclusion, your insurance company may deny the claim outright—leaving you with no coverage for legal defense or damages.
This single exclusion has bankrupted contractors who thought they were covered.
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Why Standard Policies Aren’t Enough in New York
Because of these exclusions, a “standard” general liability policy is often inadequate for New York contractors. You need to work with a broker who:
• Knows which carriers will write Scaffold Law–exposed risks.
• Can negotiate broader coverage without dangerous exclusions.
• Understands how contracts with general contractors, owners, and municipalities affect your insurance requirements.
Choosing the wrong broker or relying on a cheap policy that looks good on paper can destroy your business when a claim happens.
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How BGES Group Protects New York Contractors
This is where BGES Group comes in. For over 44 years, BGES Group has specialized in helping contractors navigate New York’s complex insurance landscape. We’re not a large, impersonal agency where one account executive manages 200 accounts. At BGES Group:
• Personalized Service: Our account executives typically handle fewer than 50 accounts each, meaning you get the attention and expertise your business deserves.
• New York Construction Experts: Unlike generalist agencies, we live and breathe New York construction insurance. We know the carriers, the exclusions, and the strategies to get you the best protection at the best rates.
• Hands-On Support: We don’t just place your policy and disappear. We help with certificates of insurance, contract reviews, claims assistance, and safety guidance to keep your premiums under control.
• Market Access: We work with the top admitted and surplus lines carriers willing to write Scaffold Law–exposed contractors. We know how to present your business to underwriters so you stand out as a safer, more insurable risk.
When other agencies say “it can’t be done” or push you toward a stripped-down policy full of exclusions, BGES Group finds real solutions.
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What Makes Us Different From Other Agencies
Most agencies:
• Don’t specialize in construction.
• Assign inexperienced account managers to your business.
• Sell the cheapest policy to win the account, leaving you exposed.
• Fail to explain dangerous exclusions hidden in your policy.
BGES Group is different because we:
• Focus exclusively on construction insurance with a heavy emphasis on New York contractors.
• Review every endorsement to eliminate hidden gaps in coverage.
• Negotiate on your behalf with underwriters who trust our expertise.
• Educate you about your risks, so you understand what’s covered and what’s not.
• Give you direct access to senior professionals—not a revolving door of junior staff.
In short, we put ourselves on your side, making sure you’re protected before the claim—not after.
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Don’t Let Insurance Be the Reason You Lose Work
New York contractors already face enormous challenges—tight margins, labor shortages, material costs, and regulatory compliance. Insurance shouldn’t be another obstacle. By partnering with BGES Group, you can:
• Lower your liability premiums with smart risk management and underwriting strategies.
• Win more jobs by providing the correct certificates of insurance that meet contract requirements.
• Protect your business assets from devastating Scaffold Law claims.
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Contact BGES Group Today
Don’t leave your business exposed to New York’s Scaffold Law. Let BGES Group help you secure the right coverage, at the right price, with the right support.
📞 Call: Gary Wallach – (914) 806-5853
📧 Email: bgesgroup@gmail.com
🌐 Website: http://www.bgesgroup.com
With BGES Group on your side, you can focus on building New York—while we focus on protecting you.