When a New York homeowner decides to gut-renovate their property, the first thought is usually about design, finishes, and budgets. But in New York, one of the most overlooked issues is liability under Labor Law Sections 240 and 241—often called the Scaffold Law and its companion. These laws create unique exposures for homeowners, general contractors, and subcontractors.
If a contractor is subcontracting 100% of the work out to trades, who’s legally on the hook when an accident happens? Let’s break it down:
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The Homeowner’s Position
New York law recognizes the one- and two-family homeowner exemption. This means that if a homeowner is renovating a property used exclusively for residential purposes and does not direct or control the work, they are exempt from liability under Labor Law 240/241.
In simple terms: If the homeowner is hands-off and leaves supervision to the professionals, they are protected. But if they start managing the job—telling workers where to place scaffolding or how to perform tasks—they could lose this exemption and be pulled into a lawsuit.
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The General Contractor’s Responsibility
The general contractor (GC) carries the heaviest legal burden. Even if they subcontract 100% of the work, New York law places a non-delegable duty on them to ensure the job site is safe.
If a worker falls from a ladder, scaffold, or gets injured because of a safety violation, the GC can be held strictly liable—even if they had no direct involvement in the unsafe condition. Their only shield is strong contractual agreements with subs and the right insurance program.
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The Subcontractors’ Exposure
Subcontractors are responsible for maintaining safety while performing their trades. If their unsafe practices cause an accident, they can be sued directly. But in practice, most injured workers file claims against the owner and GC first. From there, liability trickles down via indemnification clauses and insurance requirements.
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The Liability Chain
Here’s how it usually plays out:
1. Worker falls → sues homeowner and GC.
2. Homeowner uses the one- and two-family exemption → usually gets dismissed.
3. GC remains strictly liable.
4. GC looks to subcontractors’ insurance and indemnity to push responsibility back downstream.
The lesson? The GC must have airtight risk transfer strategies—otherwise, they’re left holding the bag.
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Why More Contractors Are Turning to BGES Group
This is exactly where BGES Group steps in.
Contractors across New York are realizing that most insurance agencies operate like factories—pushing policies out the door with little thought to the real risks involved. The result? Contractors are left exposed when a Labor Law claim comes in, and by then it’s too late.
BGES Group is different. We don’t just sell policies—we dig into the details, review contracts, and structure coverage so that when a Labor Law 240/241 claim hits, our clients aren’t blindsided. More and more New York contractors are coming to us because they see the difference in service, responsiveness, and knowledge.
We know the fine print that protects you, the endorsements that matter, and the pitfalls other agencies overlook.
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Contact BGES Group Today
If you’re a contractor working in New York—especially on residential jobs—don’t leave yourself exposed under Labor Law 240/241. Let BGES Group review your program and show you the difference a specialist makes.
📞 Gary Wallach
BGES Group
Phone: 914-806-5853
Email: bgesgroup@gmail.com
🌐 www.bgesgroup.com