New York contractors face some of the highest liability insurance rates in the country. Whether you’re a general contractor, a specialty trade contractor, or a small subcontractor, you’ve likely felt the financial strain of rising premiums. But why are rates so high in New York, and more importantly, what can you do to keep your costs from skyrocketing?
In this article, we’ll break down the key reasons behind New York’s soaring contractor liability rates and provide actionable strategies to help mitigate those increases. We’ll also introduce BGES Group, one of New York’s top insurance specialists for contractors, explaining why they’re the go-to choice for businesses looking to save money while maintaining strong coverage.
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Why Are New York Contractor Liability Rates So High?
Contractor liability insurance in New York is notoriously expensive. There are several factors driving these costs:
1. The Scaffold Law (Labor Law 240 & 241)
New York is the only state in the U.S. that enforces absolute liability under the Scaffold Law. This law holds contractors and property owners fully responsible for elevation-related injuries, even if the worker was partially at fault. Insurance companies see this as a major risk, leading to significantly higher premiums.
2. High Frequency of Litigation
New York is one of the most litigious states in the country. Construction-related injury claims and lawsuits are extremely common, with settlements and judgments often reaching millions of dollars. The sheer number of claims drives up insurance costs across the board.
3. Expensive Medical and Workers’ Compensation Claims
The cost of medical care and workers’ compensation benefits in New York is among the highest in the nation. When a worker is injured, insurers pay out substantial sums for medical treatment, rehabilitation, and lost wages—costs that get passed on to contractors in the form of higher premiums.
4. Strict Regulatory Environment
New York has complex labor laws and strict safety regulations. While these regulations help improve job site safety, they also increase the risk of non-compliance penalties, lawsuits, and costly insurance claims.
5. High Population Density & Urban Construction Risks
Working in crowded urban environments like New York City presents unique challenges. Contractors face greater liability risks due to factors such as limited space, pedestrian traffic, and the need for high-rise construction. These risks contribute to higher insurance premiums.
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How Can Contractors Mitigate Rate Increases?
While high insurance rates may seem unavoidable, there are several strategies contractors can use to keep costs under control.
1. Improve Safety Practices
A strong safety culture can reduce the likelihood of accidents and claims. Consider implementing:
• Regular safety training programs
• Strict job site safety protocols
• Frequent equipment and site inspections
• Use of advanced safety technology (such as wearables and AI-driven monitoring)
Insurance carriers reward contractors with lower claims histories by offering better rates.
2. Invest in Risk Management
Hiring a risk management consultant or working with an insurance specialist (like BGES Group) can help you identify risks and implement proactive solutions. A comprehensive risk management plan demonstrates to insurers that you are serious about safety, which can result in lower premiums.
3. Implement a Strong Return-to-Work Program
When injuries occur, having a structured return-to-work program can minimize workers’ compensation claims. Getting employees back on light duty as soon as possible helps reduce claim costs and prevents long-term disability payouts.
4. Choose the Right Insurance Carrier
Not all insurance companies view contractor risk the same way. Some insurers specialize in construction-related policies and may offer better pricing or customized coverage. Working with an experienced insurance brokerage, like BGES Group, can help you find the best carrier for your needs.
5. Carefully Review Subcontractor Coverage
If you work with subcontractors, ensure they have their own adequate insurance coverage. Otherwise, your policy could be forced to cover their claims, leading to increased rates at renewal. Require all subcontractors to provide certificates of insurance with proper coverage limits.
6. Work With an Experienced Insurance Broker
A knowledgeable broker who specializes in contractor insurance can help you navigate the complexities of New York’s insurance market. They can assist in structuring policies that balance cost and coverage while identifying ways to reduce premiums.
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Why Contractors Should Work With BGES Group
When it comes to managing high insurance costs in New York, BGES Group is one of the best choices for contractors. With years of expertise in construction insurance, they provide tailored solutions that help contractors secure coverage at competitive rates while managing risk effectively.
What Sets BGES Group Apart?
1. Specialized Focus on Contractor Insurance
BGES Group isn’t a general insurance broker—they focus specifically on contractors. This means they understand the unique risks you face and know how to structure policies that offer the best protection without unnecessary costs.
2. Expertise in Navigating New York’s Insurance Challenges
With in-depth knowledge of New York’s Scaffold Law, workers’ compensation system, and liability insurance market, BGES Group helps contractors avoid common pitfalls that lead to higher premiums.
3. Access to Top-Tier Insurance Carriers
BGES Group works with leading insurance providers to find policies that fit your business. They have access to specialized markets that other brokers may not, giving you more options for affordable coverage.
4. Risk Management and Loss Control Services
Beyond just selling insurance, BGES Group helps contractors reduce claims and lower costs through proactive risk management strategies, safety recommendations, and claims advocacy.
5. Exceptional Customer Service and Claims Support
Many brokers disappear after selling you a policy—but not BGES Group. They provide ongoing support, ensuring you have assistance when you need it most, especially when dealing with claims or policy renewals.
6. Helping Contractors Across New York and Beyond
BGES Group serves contractors throughout the Tri-State area, with affiliate partners covering the entire U.S. Whether you’re working in Manhattan, Brooklyn, Long Island, or upstate New York, they have the expertise to protect your business.
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Contact BGES Group Today
If you’re a New York contractor struggling with high insurance rates, BGES Group can help you find solutions that save money without compromising coverage. Their team of specialists is ready to provide expert guidance tailored to your business needs.
Contact Information:
• Name: Gary Wallach
• Phone: 914-806-5853
• Email: bgesgroup@gmail.com
• Website: www.bgesgroup.com
Don’t wait until your next renewal to take action—reach out to BGES Group today and start lowering your contractor liability insurance costs!