In today’s New York construction market, liability insurance isn’t what it used to be. Between ever-tightening insurance carrier guidelines, rising claim settlements, and heightened legal exposure, general contractors and property owners have become far more particular about the coverages they require from subcontractors and project managers. If you’re a New York contractor bidding jobs or working with larger general contractors, you need to understand exactly what these decision-makers are looking for in a Commercial General Liability (CGL) and Umbrella Liability policy — and where many policies fall dangerously short.
At BGES Group, we work with hundreds of Tri-State contractors and see firsthand the challenges they face in navigating this insurance maze. Let’s break down what coverages are being demanded today and some hidden policy forms that could quietly ruin your coverage when you need it most.
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Key Coverages General Contractors and Property Owners Expect
Labor Law and Action Over Coverage
New York’s infamous Labor Law Sections 240 and 241 put strict liability on property owners and general contractors for certain worker injuries, especially falls from heights. As a result, general contractors insist that any subcontractor’s liability policy include coverage for Labor Law claims and Action Over actions.
Action Over refers to situations where an injured employee sues a third party (like a GC or owner) who then seeks indemnification from the subcontractor. Many cheap liability policies exclude this exposure, leaving both parties exposed and making your policy unacceptable for quality jobs.
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Contractual Liability
Construction projects are built on contracts. Many liability policies subtly limit Contractual Liability coverage, especially when it comes to hold harmless and indemnity agreements. Contractors need a CGL policy that provides broad Contractual Liability protection, ensuring you can legally and financially honor the agreements you sign on every project.
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Blanket Additional Insured — Know the Difference
Nearly every GC and property owner will demand to be named as an Additional Insured on your policy. But here’s the catch: there are two main versions of this coverage:
• Privity of contract required: The additional insured coverage only extends to those you have a direct written contract with.
• No privity required: Coverage extends to any party you are contractually required to add as an additional insured — even if you don’t have a direct contract with them.
General contractors and risk managers strongly prefer the no-privity version, as it simplifies protection for property owners and upstream parties. Always clarify which version your policy provides.
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Blanket Waiver of Subrogation
Another big requirement is a Blanket Waiver of Subrogation, which prevents your insurance company from suing the GC or owner after paying a claim. Again — watch for the privity vs. no-privity distinction:
• With privity: Waiver only applies to those you have a written contract with.
• Without privity: Covers anyone you’re required to waive subrogation for by contract.
GCs typically prefer the no-privity version for smoother claim handling and risk management.
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Primary and Non-Contributory Language
When your policy lists a GC or property owner as an Additional Insured, it must also state that your policy is Primary and Non-Contributory. This means your insurance responds first in the event of a claim, without expecting contribution from the GC or owner’s policy.
Failure to include this often invalidates your Additional Insured coverage in real-world claim situations.
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Per Project Aggregate
A critical enhancement for CGL policies is a Per Project Aggregate Limit. This ensures that claims from one project won’t deplete your total liability coverage for other jobs. GCs increasingly demand this so they aren’t left uncovered if a contractor burns through their policy limits elsewhere.
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Forms and Exclusions to Watch Out For
Even with these coverages included, many policies hide limitations in endorsement forms. Here are a few of the most dangerous:
• Residential Exclusions: Completely removes coverage for any work on residential buildings, condos, or co-ops — a dealbreaker if you work in this space.
• Height Limitation Endorsements: Exclude work over a specific height, often 2 or 3 stories. Problematic for scaffold, roofing, or multi-story renovations.
• Construction Limitation Forms: Restrict coverage to specific operations only (e.g., drywall or carpentry), leaving you uninsured if you do work outside those descriptions.
• Strict Subcontractor Coverage Requirements: Require all your subcontractors to carry equal or higher insurance, name you as Additional Insured, and provide Waiver of Subrogation. If one sub falls short, your claim could be denied.
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How BGES Group Protects Tri-State Contractors
At BGES Group, we’ve spent decades helping contractors in New York, New Jersey, and Connecticut navigate complex insurance challenges. Unlike many large, factory-style agencies that sell one-size-fits-all policies—often staffed by inexperienced account executives managing more accounts than they can handle, with frequent personnel changes and long hold times—we provide a personalized, mom-and-pop level of service. Every client receives individual attention, direct communication, and tailored insurance solutions.
We know which carriers write quality policies with the right endorsements for your type of work. We’ll review your current policy, identify dangerous exclusions, and help you secure a comprehensive liability and umbrella program that meets the strict demands of today’s GCs and property owners.
And if you’re still unsure about working with us, you don’t have to take our word for it. You can gain confidence in partnering with BGES Group by hearing what others have to say. Just check out our Google reviews — you’ll see real feedback from contractors throughout the Tri-State area who count on us to protect their businesses.
When you work with BGES Group, you’re not just a number — you’re a partner. We take pride in keeping our clients protected and competitive in a rapidly changing insurance environment.
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Contact BGES Group Today
If you’re unsure whether your current policy has the coverages your clients require — or if you’re tired of dealing with impersonal mega-agencies — let’s talk.
Contact:
Gary Wallach
BGES Group
📱 914-806-5853
Protect your business, win more jobs, and work with people who care about your company’s future.