Risk Management and New York Construction Insurance

Contractors have concerns about general liability risks with issues regarding increasing legal costs that make risk management and safety more important than ever. New York Construction Insurance, obtained from agents familiar with this industry, helps calm the nerves of property owners, general contractors and subcontractors alike.

Since most construction workers employed by independent contractors cannot sue their employers directly, they’re likely to go through the workers’ comp system for any lost wages and medical expenses. Having experienced, well-trained worker reduces the likelihood of this occurring.

Scaffold Law exists to protect injured workers

The Scaffold Law imposes an absolute, non-delegable duty upon owners and general contractors to provide a safe working environment for laborers who work at elevation to protect them from accidents specifically related to gravity, such as experiencing a fall from heights or being struck by an inadequately secured item.

For trade contractors, having safety measures in place is vital, as well as making sure to hold daily meetings with laborers to ensure that the proper equipment is being used and job site and public protection is being enforced.

Insurers shy away from repeat violators of safety codes

Because the risk of insuring a repeat safety violator is typically much higher, insurers regularly look at policyholders’ training documents to ensure they maintain rigorous training programs for their employees. They typically look at important areas such as fall protection, trenching and other key construction project elements having higher workplace accident rates.

Subcontractors should also have strict hiring practices in place and not resort to bringing labor in off the street and instead, hire only qualified, competent workers who have demonstrated a level of knowledge and safety in their particular construction industry trade. The underwriting process often focuses on loss control measures to eliminate fall hazards, using a detailed analyses of past claims experience and proper contractual risk transfer language for contractors that utilize subcontractors.

Keeping workers healthier can also mitigate the risk of serious injury, illustrating the importance of requiring a zero-tolerance disciplinary policy for workplace safety infractions. Most agents look at risk management practices as a key element in determining which contractors they believe they can provide with New York Construction Insurance to help benefit their business.