The 10 Biggest Insurance Challenges Facing New York Contractors in 2025—And How BGES Group Is Solving Them

The construction industry in New York is more competitive and complex than ever in 2025. With rising costs, stricter regulations, and evolving risks, contractors are finding it increasingly difficult to secure the right business insurance. The wrong coverage—or even small gaps in policies—can leave contractors exposed to lawsuits, fines, and financial ruin.

That’s why it’s critical to understand the biggest challenges facing New York contractors when it comes to insurance. More importantly, contractors need a reliable partner who can help them navigate these obstacles and secure the best protection at the most affordable rates.

Enter BGES Group, a specialized insurance agency that has become the go-to resource for New York contractors. They understand the industry’s challenges and have the expertise to provide customized solutions that keep businesses protected and thriving.

The 10 Biggest Insurance Problems Facing New York Contractors in 2025

1. Skyrocketing Insurance Costs

New York contractors are seeing their insurance premiums rise at an alarming rate. General liability, workers’ compensation, and umbrella policies are all increasing due to more claims, stricter underwriting, and the overall risk environment. Many contractors are struggling to afford the necessary coverage, putting their businesses in a vulnerable position.

2. Labor Law 240 (The “Scaffold Law”) Lawsuits

New York’s Labor Law 240 holds contractors and property owners 100% liable for injuries sustained by workers in falls from heights—even if the worker was negligent. This has led to massive lawsuits, soaring insurance premiums, and insurers exiting the market. Contractors are left with fewer options and higher costs.

3. Limited Availability of Coverage

Many major insurance carriers have stopped writing policies for New York contractors, especially in high-risk trades like roofing, scaffolding, and demolition. This makes it incredibly difficult to find comprehensive coverage, and even when available, the premiums can be unaffordable.

4. Stricter Underwriting Requirements

Insurance companies are becoming much more selective, requiring detailed safety programs, loss control measures, and claims history reviews before offering coverage. Many contractors are getting denied or receiving policies with excessive exclusions that leave them exposed.

5. Subcontractor Insurance Issues

General contractors (GCs) are often responsible for ensuring their subcontractors have the right insurance. If a subcontractor has lapsed coverage, insufficient limits, or an excluded policy, the liability can fall back on the GC, leading to costly claims and lawsuits.

6. Inaccurate Classifications and Payroll Audits

Workers’ compensation premiums are based on employee classifications and payroll amounts. Many contractors unknowingly misclassify workers, leading to unexpected premium audits and hefty back charges. Insurance carriers are cracking down, and many contractors are getting blindsided.

7. Difficulty Obtaining Performance & Bid Bonds

Many public and private projects require contractors to obtain performance and bid bonds. However, strict financial and underwriting requirements make it difficult for small and mid-sized contractors to qualify. Without bonding, contractors miss out on lucrative projects.

8. Gaps in Coverage Leading to Denied Claims

Many contractors unknowingly purchase policies with hidden exclusions that result in denied claims when they need coverage the most. Whether it’s an exclusion for subcontractor-caused damage or a limitation on certain types of work, these gaps can be financially devastating.

9. Workers’ Compensation Fraud & Abuse

Workers’ comp fraud—whether from dishonest employees, medical providers, or even subcontractors—continues to be a major issue. Contractors often end up paying inflated premiums due to fraudulent claims, driving up their overall insurance costs.

10. Compliance With New Insurance Laws & Regulations

New York’s insurance laws are constantly changing, making it difficult for contractors to stay compliant. Whether it’s new liability requirements, stricter workers’ comp rules, or additional reporting mandates, contractors must stay informed or risk fines and legal issues.

How BGES Group Helps New York Contractors Solve Their Insurance Problems

New York contractors need an insurance expert who understands the industry’s unique challenges. That’s where BGES Group comes in. Led by industry veteran Gary Wallach, BGES Group has been helping New York contractors secure affordable, high-quality insurance coverage for over 45 years.

Here’s how BGES Group is solving contractors’ biggest insurance headaches:

1. Lowering Insurance Costs

BGES Group works with a wide network of top-tier insurance carriers to find contractors the best possible rates. They specialize in cost-saving strategies, such as risk management programs and policy bundling, to help businesses save thousands.

2. Providing Coverage for High-Risk Contractors

Unlike many brokers who avoid high-risk industries, BGES Group specializes in tough-to-insure trades like roofing, scaffolding, and demolition. They have access to exclusive programs that many other brokers don’t.

3. Navigating Labor Law 240 Challenges

With deep expertise in New York’s Scaffold Law, BGES Group ensures contractors have the right coverage to protect against catastrophic lawsuits. They also provide legal risk assessments and defense strategies to minimize liability.

4. Helping Contractors Avoid Policy Exclusions & Gaps

BGES Group meticulously reviews policies to identify hidden exclusions and make sure contractors are fully protected. Their team ensures coverage aligns with project requirements, preventing claim denials down the road.

5. Ensuring Subcontractor Compliance

BGES Group helps contractors implement subcontractor insurance tracking systems to avoid liability from uninsured or underinsured subs. They make sure all subcontractors meet the necessary insurance requirements before starting work.

6. Preventing Workers’ Comp Audits & Misclassification Issues

Their team works proactively to properly classify employees, track payroll, and prepare for audits, helping contractors avoid unexpected costs and disputes with insurance carriers.

7. Assisting With Bonds & Financial Qualification

BGES Group helps contractors secure bid and performance bonds, even if they have financial challenges. They work closely with bonding companies to improve approval odds.

8. Fighting Workers’ Comp Fraud

BGES Group helps contractors detect fraudulent claims, implement return-to-work programs, and contest fraudulent injuries—reducing unnecessary payouts and keeping premiums in check.

9. Providing Ongoing Risk Management Support

They don’t just sell policies—BGES Group acts as a long-term risk management partner, providing safety training, claims assistance, and compliance support to keep contractors protected.

10. Keeping Contractors Compliant With New Laws

BGES Group stays ahead of evolving regulations, ensuring contractors stay compliant and avoid penalties. They provide updates and guidance on changes in insurance laws and coverage requirements.

Work With BGES Group—New York’s Leading Insurance Partner for Contractors

If you’re a New York contractor struggling with insurance challenges, BGES Group is here to help. Whether you need lower premiums, better coverage, or help navigating complex regulations, their team has the expertise to protect your business and your bottom line.

Contact BGES Group Today

Gary Wallach

Phone: 914-806-5853

Email: [email protected]

Website: www.bgesgroup.com

Don’t let insurance challenges hold your business back. Call BGES Group today and get the protection you need to succeed in 2025!