Question 1

Why is New York construction insurance so expensive?

Accepted Answer

The primary driver is the Scaffold Law (Labor Law Section 240), which imposes absolute liability on property owners and general contractors for gravity-related injuries. This means if a worker falls — even due to their own negligence — the property owner and GC are strictly liable. No other state has this law. It adds an estimated $2 billion annually to New York construction costs and drives general liability premiums 30-50% higher than comparable states.

Question 2

What is the Scaffold Law and how does it affect insurance?

Accepted Answer

The Scaffold Law (NY Labor Law 240) is an absolute liability statute that holds property owners and general contractors liable for gravity-related injuries on construction sites, regardless of worker negligence or comparative fault. This means even if a worker ignores safety protocols and falls, the GC and owner are fully liable. This drives up general liability and umbrella insurance costs significantly — most carriers charge a premium specifically for Scaffold Law exposure.

Question 3

How much does construction insurance cost in New York?

Accepted Answer

New York construction insurance typically costs $15,000–$40,000/year — the highest in the nation. Workers' comp rates range from $8–$40 per $100 of payroll depending on trade. General liability costs $5,000–$15,000/year. NYC projects cost 20-40% more than upstate. A mid-size GC running $3M in annual projects in NYC might pay $25,000–$35,000/year.

New York Construction Insurance | RISKX