Contractor insurance in New York
New York is one of the hardest states in the country to insure a contractor, and the reason has a name: Labor Law 240. Here's what you actually need to get on a job site, why quotes vary so wildly, and how to avoid the policy that excludes the work you do.
What a contractor needs
- General liability — injuries and property damage from your operations and completed work. In New York, the policy must respond to Labor Law claims, which means no action-over exclusion and no exclusion for the heights and trades you actually work.
- Workers' compensation + DBL/PFL — required from the first employee; required by contract for almost everyone.
- Commercial auto — trucks, vans and trailers. A personal policy on a daily-use work truck usually excludes that use; check before you rely on it.
- Tools and equipment (inland marine) — covers tools in the truck, on site and in the shop. Property policies don't follow tools off premises.
- Builders risk — the structure under construction, for new builds and major renovations, usually per project.
- Umbrella — increasingly required by GCs and owners; and given Labor Law, worth having anyway.
"Action over" / injury to employees of subcontractors
The typical New York Labor Law claim goes like this: a subcontractor's employee falls; they can't sue their own employer (workers' comp), so they sue the owner and the GC under 240; the owner and GC sue you under the indemnity clause in your contract. If your GL excludes claims arising from injuries to workers, you have no coverage for exactly the claim New York is famous for. Cheap contractor GL almost always has this exclusion.
By trade
| Trade | Particular issues |
|---|---|
| Carpenters, remodelers, handymen | Height and roofing exclusions; subcontractor certificates; tools cover |
| Roofers | The hardest class in New York; a small market of carriers, high premiums, strict safety requirements |
| Electricians, plumbers, HVAC | Completed-operations claims (fire, water damage) years later; licence requirements |
| Painters, drywall, flooring | Usually placeable; watch exterior/height exclusions for painters |
| Excavation, paving, masonry | Underground utility damage; heavy equipment (inland marine); higher auto exposure |
| Landscapers, snow plowing | See the landscapers page — snow is its own problem |
| General contractors | Subcontractor management is the whole game; certificate tracking; higher limits and umbrellas |
How it's priced
General liability for contractors is rated on payroll (and sometimes revenue or subcontractor costs) by class code, with New York-specific loadings for Labor Law exposure. Workers' comp is payroll × class rate × experience mod. Both are audited at year end. What you can control: accurate classification of each worker, a written safety program, fall-protection training with records, and collecting certificates from every sub. Carriers ask for all four.
What I need to quote
- Your trades, and the percentage of work that is residential vs commercial, new vs remodel, interior vs exterior.
- Maximum height you work at; whether you do any roofing.
- Payroll by class, and annual cost of subcontracted work.
- Vehicles and drivers.
- Tools and equipment values.
- Years in business, licences held, safety program, and any claims.
- The insurance section of any contract you need to satisfy.
I place contractor coverage across the Capital Region and I'll tell you straight when a trade is hard to insure and what it will take. Request a quote. Taking your first subcontract? The first GC job guide translates the insurance requirements sheet line by line.
Common questions
Short answers to what people ask before they call.
What is Labor Law 240 and why does it affect my premium?
Section 240(1) of New York's Labor Law (the 'Scaffold Law') holds owners and contractors liable for elevation-related injuries — falls from ladders, scaffolds and roofs, or objects falling on workers — where the required safety protection was inadequate, and the worker's own carelessness is generally not a defence unless it was the sole cause. Section 241(6) adds liability for violating specific construction-safety rules. Because these claims are large and hard to defend, general liability for contractors costs far more in New York than anywhere else, and many carriers won't write it at all.
Why did one GL quote come in at a third of the price of another?
Almost always because the cheap one excludes something: work above two storeys, roofing, exterior work, subcontracted labour, or injuries to employees of subcontractors (the 'action over' exclusion). That last one is critical in New York — it's exactly how Labor Law claims reach you. I read every exclusion before I show you a quote.
What do I need to show a general contractor before I can start?
Typically: a certificate showing general liability at $1M/$2M with the GC and owner as additional insured (on a primary and non-contributory basis), workers' compensation (form C-105.2), disability/PFL (DB-120.1), commercial auto, and sometimes an umbrella. Send me the contract's insurance section and I'll match it.
I'm a one-person operation. Do I need workers' comp?
Not by law if you truly have no employees — but nearly every GC, municipality and many homeowners' contracts require it, and it's the only way to get on most sites. Sole proprietors can elect coverage. If you ever use helpers or day labour, you need it regardless.
Do I need to collect certificates from my subcontractors?
Yes — every time. If a sub's employee is hurt and the sub is uninsured, the claim comes to you, and your own workers' comp carrier will charge you for the sub's payroll at audit. Collect a current certificate before anyone starts.
Let's talk it through
A phone call or a message is all it takes. The first conversation is just a conversation.
Where I work
I'm based in Clifton Park and work across four Capital Region counties, in person or by phone.