10 Things New York General Contractors Should Look for in Their General and Umbrella Liability Policies

As a general contractor in New York, securing the right General and Umbrella Liability insurance is crucial to protecting your business from costly lawsuits and claims. Not all policies are created equal, and failing to have the right coverage can leave you exposed to significant financial risk. Here are 10 key things you should look for when reviewing your liability policies:

1. Labor Law (Scaffold Law) Coverage

New York’s Labor Laws 240 and 241 hold contractors and property owners strictly liable for elevation-related injuries. Without proper coverage, you could be personally on the hook for massive settlements and legal fees.

2. Additional Insured Endorsements

Many contracts require you to list owners, developers, and subcontractors as additional insureds. Make sure your policy provides this coverage on both an ongoing and completed operations basis.

3. Primary & Non-Contributory Wording

Your policy should clearly state that it pays first (primary) and doesn’t seek contribution (non-contributory) from other policies, as required in many construction contracts.

4. Action Over / Third-Party Over Exclusions

This exclusion can prevent coverage for lawsuits filed by injured subcontractor employees. Avoid policies with this exclusion or work with an expert to ensure proper coverage is in place.

5. Contractual Liability Coverage

Your policy should cover liability you assume under contracts with project owners, developers, or subcontractors. Review the exclusions carefully.

6. Completed Operations Coverage

Claims can arise years after a project is finished. Ensure your general liability policy includes long-term completed operations coverage to protect against future lawsuits.

7. Defense Costs Outside the Limits

If your legal defense costs are included within your policy limits, they could quickly eat up your coverage. Opt for a policy that provides defense costs in addition to your liability limits.

8. High Umbrella Limits

A $1 million general liability policy is often not enough in construction. Many contracts require $5M, $10M, or more in umbrella coverage. Make sure you carry sufficient limits.

9. Per Project Aggregate Limits

Instead of one coverage limit spread across all projects, a per project aggregate ensures you have full coverage for each job, rather than sharing a single limit across multiple projects.

10. Subcontractor Coverage Compliance

Your policy should require subcontractors to carry proper coverage and name you as an additional insured. This helps shift liability away from you in case of a claim.

BGES Group: The Construction Insurance Experts for NY, NJ & CT Contractors

Navigating liability insurance for construction in New York, New Jersey, and Connecticut is complex—but that’s where BGES Group comes in.

We specialize in construction insurance and understand the unique risks general contractors face. Whether you need to upgrade your current policies, secure better pricing, or ensure contract compliance, we are here to help.

Contact BGES Group Today!

? Call: Gary Wallach at 914-806-5853 ? Email: [email protected] ?? Visit: www.bgesgroup.com

Let’s make sure your business is properly protected with the right coverage at the best rates available!