Closely examine your contractor insurance policies and implement cost saving tactics.
Protect Your Business
There are a lot of policies out there with dangerous policies that could put your assets at risk.
From workers compensation to construction regulations and New York labor law, our experts are here to help.
Why is Construction Insurance in NY so Expensive?
Everyone knows construction carriers inherit risks. However, in addition to the traditional exposures contractors face every day, New York has particular laws that are grossly construed against employers in the construction industry.
NY labor law in particular allows injured (or allegedly injured) employees to easily sue their own employer via third party action over suits. This allows the employee to collect damages against an employer’s general liability policy, in addition to the workers compensation benefits already in place to protect them.
NY labor law also enforces strict liability when there is height involved. So if a worker falls from height, no matter if it’s entirely his/her fault, the employer is strictly liable and basically cannot defend itself in court.
These are just two of the factors that make insurance in New York so costly.
- Covers Bodily Injury & Property Damage
- Pricing Based on Scope of Work
- Provides additional GL limits
- NYC usually requires at least $5M
- Covers liability insurance on your vehicles
- $1 million limit is standard
- Required by law to cover employee injuries
- Rates are set by class
Frequently Asked Questions
How is the price of general liability for a contractor determined?
The price of general liability is based on several factors including, scope of work, location, experience, payroll and revenues.
How can I save on Workers Compensation?
Workers Compensation base rates are set by New York State. So the number one way to save is to limit losses which affect your experience modification. Reward and incentive programs for a safe work place or going a period of time without injury go a long way to limit losses. Offering benefits such as health also help discourage workers from limping into work to make a work comp claim after getting injured on the weekend.
Are there work comp options besides the State Fund?
Not many insurance carriers like to write workers compensation for contractors. However, there are certainly still viable options other than the State Insurance Fund. With good loss experience some carriers will write your work comp as a package combined with the other lines of coverage.
Am I getting overcharged for insurance?
There are few areas where you may be actually paying more than you need to. The first area previously mentioned is paying general liability premium for revenue that is not covered by GL and has no exposure, such as pass through fees. You also want to make sure your revenue and payrolls are properly classified. An experienced broker will be able to ensure that you are being rated properly.
Why is one insurance quote so much lower?
Unfortunately, in today’s world you can’t trust just anyone. If it sounds too good to be true, it probably is. There are many policies available that essentially exclude all coverage and aren’t worth the paper they are printed on.
You also want to be wary of brokers willing to purposely misrepresent your operations in order to secure better quotes. If a serious claim were to occur, the insurance carrier would have the right to deny coverage. Your company could be on the hook for the entire claim.