Labor Law Coverage
If you are a business owner, especially a contractor, in the state of New York you most likely have heard of the term Labor Law Coverage or Scaffolding law.
It is no secret construction is one of the most dangerous fields to work in which is why New York still operates as a Labor Law State.
These laws are broken down in New York State Labor Law Section 240 & 241.
Section 240 & 241 give employees protection in the event they are injured from either a fall from heights or hit by a falling object while on the job site.
Under this law, both employers and commercial property owners can be held accountable for any negligence for this accident.
The nature of this law makes employers 100% liable for these injuries even if the employee is negligent in the accident.
How does this affect my insurance
This is the main reason why construction insurance is so expensive.
Construction insurance rates have been on the rise for years in New York. Both Liability and Worker’s Compensation coverage.
Labor Law Coverage falls under a contractor’s General Liability Coverage. This coverage helps protect and defend employers if an accident occurs.
Lower risk industries will usually have labor law coverage included in its general liability policy but higher risk industries like roofers, will not. Exclusions can be built in causing a gap in coverage protection.
What is the solution for construction businesses?
The Labor Law was originally enacted to compensate employees from gravity-related injuries but the fact that employee negligence does negative the law causes a lot of frustration and increased expense.
Until New York State recognizes employee error or negligence within the scope of an injury claim, construction costs will continue to rise. This, in turn, will lead to higher taxes coupled with insurance carriers less inclined to write the coverage needed for a contractor to do business within the State.
Contractors must understand if they have this coverage and what the cost is to add it if it isn’t automatic.
Reach out to your insurance agent to have this conversation, if you don’t have a relationship with an agent or want a review of your insurance then click the button below to schedule a review with one of our trusted insurance advisors.