Construction Insurance

NY Labor Law 240/241 changes the insurance math for every contractor working in the state.

Construction Insurance for NY Metro Contractors and Trades

New York’s Scaffold Law (Labor Law 240 and 241) creates absolute liability for property owners and general contractors on elevation-related injuries. Unlike most states, contributory fault on the part of the injured worker is not a defense in New York. A single 240/241 claim can run $2M to $10M or more. This is the primary reason many national carriers won’t write NY construction at all, and why those that do price it significantly higher than the same work in New Jersey or Connecticut.

We work primarily with mid-market NY construction firms in the $25M to $250M annual revenue range, operating across the five boroughs, Long Island, Westchester, and the broader NY metro area.

Who we serve:

  • General contractors (commercial ground-up, mixed-use, renovation, gut rehab)
  • Specialty trades (electrical, mechanical, plumbing, HVAC, roofing, drywall, concrete, demolition, excavation)
  • Developers and owners with NY-side 240/241 exposure

What we place:

  • Commercial general liability – NY construction-specific, with 240/241 exposure underwritten
  • Excess/umbrella – $5M to $25M layered limits for mid-market GCs
  • Workers’ compensation – with experience modification management and loss run analysis
  • Builder’s risk – project-specific and blanket, for commercial construction and renovation
  • Contractor’s pollution liability – required by most NYC and municipal contracts
  • Contractor’s equipment / inland marine – scheduled and blanket coverage for owned and leased equipment
  • Commercial auto – fleet and non-owned/hired auto across the metro area
  • Professional liability / E&O – for design-build contractors and construction managers
  • OCIP/CCIP enrollment and gap coverage – we coordinate your off-wrap coverage so there are no gaps between the wrap and your standing program
  • Surety bonds – bid, performance, and payment bonds tied to your financial strength
  • Subcontractor default insurance (SDI) – an alternative to sub payment and performance bonds

We also manage certificate of insurance tracking and additional insured endorsement requirements for GCs running projects with 15 to 40+ active subcontractors.

Our senior team, led by Daniel, handles every construction placement directly. Contact ZRM Brokerage to review your current program.

The NY Construction Market Has Tightened

Several carriers have pulled back from NY construction.

If your renewal is coming up, now is the time to review your program.

Construction Insurance FAQs

NY’s Scaffold Law imposes absolute liability on GCs and owners for gravity-related injuries, regardless of worker fault. A GC doing $50M in annual NY work will typically pay a significantly higher GL rate than an identical contractor working only in New Jersey, sometimes 30% to 60% higher depending on trade class and loss history. The carriers that remain in the NY construction market have specific underwriting appetites, and placing your risk with one that fits your project mix matters more than chasing the lowest rate.

Many NYC and New York State agency contracts set a maximum allowable e-mod, often 1.0 or 1.1, as a prequalification requirement. An e-mod above that threshold can disqualify your bid before price is ever evaluated. Beyond prequalification, your e-mod signals to GL underwriters how your WC loss history looks. Managing your e-mod means reviewing open claims, closing inflated reserves, and understanding which policy years are dragging the number. That analysis happens before your renewal, not at binding.

An OCIP (Owner-Controlled Insurance Program) or CCIP (Contractor-Controlled Insurance Program) is a project-specific wrap-up that covers enrolled contractors for GL and WC on that job site. When you’re enrolled, the wrap typically replaces your own GL and WC for that project only. Your standing policies need to reflect the enrollment correctly so you’re not paying premium twice. More importantly, you need to confirm what the wrap covers and what it doesn’t. Off-site operations, completed operations, auto, and equipment are common gaps.

If a subcontractor’s GL or WC lapses mid-project and they have a claim, you as the GC can be pulled into the claim, particularly under NY Labor Law where the GC carries non-delegable liability. Best practice: collect certificates before work begins, require automatic cancellation notification, verify that the additional insured endorsements match your contract requirements exactly, and track renewal dates. A COI that lists you as additional insured but uses a blanket endorsement instead of a scheduled endorsement may not actually provide the coverage your contract requires.

Builder’s risk covers the structure under construction and materials on site or in transit against physical loss. On a commercial renovation in NY, the key questions are: Does the policy cover existing structures being renovated, or only new construction? Are soft costs (architectural fees, permit costs, loan interest during delays) included? Is there coverage for testing and startup of mechanical systems? The answers determine whether your coverage actually responds to a loss. These are questions that get answered during policy design, not after a loss.

talk to daniel directly.

See what your current policy misses.

  • Send us your current policy and we’ll read every line

  • You get a written rundown of the gaps at no cost

  • A principal who knows your industry handles the placement