New York contractors operate in one of the most challenging environments in the country when it comes to liability. The state’s unique labor laws, particularly Labor Laws 240 and 241, place significant burdens on contractors, making it crucial to have the right insurance coverage. Labor law coverage included in both general and umbrella liability policies is not just a wise decision—it’s essential. Here’s why.
Understanding Labor Laws 240 and 241
Labor Laws 240 and 241, often referred to as the “Scaffold Law” and “Safe Place to Work Law,” respectively, are designed to protect construction workers from the dangers associated with height-related work and other hazardous conditions on a job site.
– Labor Law 240 (Scaffold Law): This law mandates that contractors, owners, and their agents are responsible for providing proper protection to workers who are at elevated heights. If a worker is injured due to a fall or a falling object, the contractor or owner is held strictly liable, regardless of the worker’s own negligence.
– Labor Law 241: This law requires owners and contractors to ensure that construction, demolition, and excavation sites are reasonably safe. This includes compliance with specific safety rules and regulations. If these conditions are not met, and a worker is injured, the contractor or owner can be held liable.
The Reality of Labor Law Claims
The implications of these laws are far-reaching, especially in the event of an accident. Here are three examples of how labor law claims typically unfold:
1. Fall from a Scaffold: A subcontractor’s employee falls from a scaffold due to improper setup. The worker files a workers’ compensation claim with their employer because they cannot sue employer directly. Instead, they sue the general contractor and the building owner under Labor Law 240. The general contractor and owner, who have insurance and hold harmless agreements in place, pass the claim back to the subcontractor, whose liability insurance must respond to the lawsuit.
2. Falling Object Injury: A construction worker is struck by a falling object that was not properly secured. The worker files a workers’ compensation claim with their employer because they cannot sue employer directly. The worker sues the general contractor and they property owner, as Labor Law 240 holds them strictly liable. The general contractor and owner, who have insurance and hold harmless agreements in place, pass the claim back to the subcontractor, whose liability insurance must respond to the lawsuit, if subcontractor has Labor Law coverage included in their liability policies.
3. Unsafe Working Conditions: A worker is injured due to unsafe site conditions that violate specific safety regulations under Labor Law 241. The worker files a workers’ compensation claim with their employer because they cannot sue employer directly. Then the worker files a lawsuit against the general contractor and the owner. The general contractor and owner, who have insurance and hold harmless agreements in place, pass the claim back to the subcontractor, whose liability insurance must respond to the lawsuit, if subcontractor has Labor Law coverage included in their liability policies.
The Financial Burden of Labor Law Coverage
Given the strict liability nature of these laws, general contractors and building owners now routinely require their subcontractors to carry labor law coverage as part of their liability insurance. However, this coverage comes at a steep price. New York is one of the most expensive states in the country for liability insurance, and including labor law coverage can significantly increase a contractor’s insurance premiums.
Why BGES Group Should Be Your Go-To Insurance Specialist
Given the complexities and costs associated with labor law coverage, it’s more important than ever to work with an insurance specialist who understands the unique challenges faced by New York contractors. BGES Group is one of New York’s leading construction insurance experts, offering specialized liability and workers’ compensation coverage tailored to meet the needs of contractors.
Unlike other agencies where account executives handle 100 to 200 accounts each—leading to mismanagement—BGES Group offers a boutique-like service. When you work with BGES Group, your account is managed by a seasoned professional with 44 years of experience. You won’t be left waiting for days to get a certificate or speak to someone inexperienced. With BGES Group, your calls are answered in seconds, and your requests are handled in minutes.
For personalized, expert service that ensures your liability and workers’ compensation coverage fully protects your business, contact Gary Wallach at BGES Group. You can reach him at 914-806-5853 or by email at bgesgroup@gmail.com.
Don’t let the complexities of New York’s labor laws put your business at risk—turn to the experts who can provide the coverage and service you need.
BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders’ risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability, and group health. Our commitment to you goes beyond the policies we provide. We are always just a call, text, or email away, ready to assist you, even on weekends. We understand the importance of your business and are here to help you navigate any insurance challenges.
BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or whatever your issue. We can help! We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, Logistics Companies, Manufacturers, Recyclers, and Truckers; we can help ANY tri-state business owner. We are considered “Preferred Agents” for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too.
If you want to speak with us, call Gary Wallach at 914-806-5853, click here to email, or visit our website.
Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538
email: bgesgroup@gmail.com
website: http://www.bgesgroup.com
© – Copyright – 2024 – BGES Group