Spectrum News 1: New York's Scaffold Law spiking construction insurance by as much as 500%
By: Nicole Neuman
In the wake of Gov. Kathy Hochul’s auto insurance reforms in the state budget to lower premiums, some are calling for her to take on construction insurance next.
“Life is too expensive and one of the reasons is the bills we receive including those when our insurance bills are going up every single month,” said Hochul during a press conference on March 18. “Enough is enough. It’s time to stop the insanity.”
The Scaffold Law is what some in the construction industry in New York have an issue with.
It’s a law experts say dates back more than 100 years and holds a contractor or property owner automatically liable if a worker sustains a gravity-related injury while on the job.
“It predated [Occupational Safety and Health Administration],” said Mike Elmendorf, president and CEO of the Associated General Contractors of New York State. “It predated workers' compensation.”
Elmendorf says the law is driving up construction costs and the likelihood of fraud.
“The costs are substantial and higher costs are the good scenario,” he said. “For a lot of contractors, they can’t get insurance because the insurers have fled the market here.”
Back in December, the Building Trades Employers’ Association released what it calls a "first-of-its-kind" impact report that takes a look at the Scaffold Law’s economic toll.
According to the report, construction insurance costs in the Empire State are 200% to 500% higher than in nearby states because of the Scaffold Law.
The BTEA’s president and CEO, Elizabeth Crowley, recently wrote in an op-ed for The Buffalo News: “For decades, staged crashes and outright fraud alone have been inflating everyone’s premiums by as much as $300 per year.”
“If we put this policy in place, we can build more abundantly,” said Crowley. “It will take strong politicians like our Governor who are willing to fight for New Yorkers and fight for affordability to win this fight.”
In a statement to Spectrum News 1, the New York State Trial Lawyers Association President Andrew Finkelstein said: "Big insurance and corporate real estate interests are playing fast and loose with the facts. Construction workers perform some of the most dangerous jobs in America. When workers are seriously injured, someone pays. The question is whether the cost falls on those who profit from the work or on injured workers, taxpayers, and local governments. Workers and responsible contractors are not adversaries. The obstacle to affordability is a system that too often delays claims, denies coverage, and avoids accountability.
Worker safety is paramount in the most dangerous areas of work. NYSTLA is proud to be part of a coalition of worker safety and labor advocates.
Any serious effort to reduce costs must first confront an insurance industry that profits from delaying claims, denying coverage, and avoiding accountability as a business model."
Spectrum News 1 reached out to the governor’s office for this report and did not immediately hear back.
On a national scale, New York U.S. Rep. Nick Langworthy has tried to take on this issue in Washington. Last year, he introduced the Infrastructure Expansion Act of 2025. It’s a federal bill aimed at reforming New York’s Scaffold Law by preempting it on federally funded or permitted construction projects.