For independent insurance agents in New York state, affordability is no longer an abstract concern. It is a daily challenge that shows up in difficult renewals, shrinking carrier lists, and clients struggling to absorb ever increasing premiums. Few laws have contributed more to this problem in the construction insurance market than New York’s Labor Law Section 240 (aka the Scaffold Law).
Proposed federal legislation that would aim to reform how this law applies to federally funded projects could be a meaningful step toward restoring affordability and stability.
How the Scaffold Law drives insurance costs
New York state’s Scaffold Law creates an absolute liability standard to elevation- and gravity-related construction injuries. New York is the only state that maintains this absolute liability standard. Under this approach, property owners and contractors can be held fully liable regardless of fault—even when safety equipment is provided, and required procedures are ignored.
From an insurance standpoint, absolute liability removes the ability to accurately price risk. Losses become more severe, claims are harder to defend and outcomes are unpredictable. Insurers respond in the only way available to them: increasing premiums, tightening underwriting guidelines or leaving the market entirely.
The result is an insurance environment in which coverage is expensive, options are limited and affordability continues to deteriorate.
The affordability impact on contractors and public projects
The cost of absolute liability does not stay confined to insurance policies. It flows through the entire construction economy.
Construction costs in New York state are estimated to be 5%-10% percent higher than in other states, with inflated insurance premiums and litigation expenses playing a significant role. For contractors, these costs often are the difference between bidding on a project or walking away. For public entities, higher costs mean fewer roads, bridges and infrastructure improvements can be completed with available funding.
For agents, this creates a difficult position. Clients want solutions, but the underlying legal framework limits what the insurance market can realistically offer.
What the federal reform would change
The Infrastructure Expansion Act of 2025, sponsored by Rep. Nick Langworthy, R-N.Y., would prohibit the use of absolute liability standards on federally funded infrastructure and transportation projects in New York state. Instead, these projects would follow a comparative negligence model that aligns liability with actual responsibility.
Importantly, this change does not eliminate liability or reduce worker protections. Workers’ compensation laws remain intact, and injured workers would continue to have access to the legal system. The difference is that claims would be evaluated based on fault rather than imposed automatically.
From an affordability perspective, this distinction matters.
Why this matters for insurance affordability
Comparative negligence allows insurers to better assess—and price—risk. When liability is tied to behavior and responsibility, losses become more predictable and defensible. That predictability is essential to attract carriers back into the market.
More carrier participation leads to increased competition. Increased competition is one of the most effective tools for improving affordability. Over time, this can help moderate premiums, expand coverage options and reduce the volatility that has plagued the state’s construction insurance market.
Lower insurance costs also can help to free up public dollars currently absorbed by premiums and litigation. Then, those funds can be redirected toward additional projects, supporting economic activity, and creating more insurable opportunities for agents.
What independent agents should take away
For independent insurance agents, Scaffold Law reform is fundamentally an availability and affordability issue.
The current absolute liability framework has contributed to higher premiums, fewer carrier options and an unstable marketplace. Federal reform would not solve every challenge overnight, but it would begin to realign New York state with national standards that support sustainable insurance pricing.
A more balanced liability system supports a healthier insurance market. A healthier insurance market improves affordability. And improved affordability benefits contractors, public entities, insurers and the agents who serve them.
The bottom line
Insurance affordability in New York state’s construction sector cannot improve without addressing the legal structures that drive excessive costs. Federal scaffold law reform represents a practical step toward restoring balance, predictability and access to coverage.
For independent agents, this reform is not about reducing safety or limiting protections. It is about creating a market in which insurance can be priced responsibly, and coverage can remain accessible for the clients who depend on it.
Joseph Ritchie
Joe Ritchie joined PIA Northeast as government and industry affairs coordinator for the Government & Industry Affairs Department in 2025, where he supports the association’s legislative, regulatory and member-advocacy initiatives across the Northeast. Prior to joining PIA, Joe served as the Advocacy & Policy Coordinator at Riverkeeper, working closely with municipal leaders, environmental organizations, and state agencies to advance clean water protections in the Hudson Valley. Previously, he worked as the Administrator of Government Affairs at Spectrum, where he managed statewide regulatory filings, supported broadband deployment efforts, and coordinated communications with policymakers. Joe also spent time in the New York State Assembly, assisting Assemblymember Kevin Cahill during his tenure as Chair of the Insurance Committee, where he contributed to committee meeting preparations, legislative research and constituent support. In addition to his government affairs work, Joe is the co-founder and Chair of Lights Out Norlite, a community-based environmental justice initiative focused on improving public health and industrial oversight in the Capital Region. He received his bachelor’s degree from Syracuse University and remains an active supporter of Syracuse Football. Outside of work, Joe enjoys cooking Italian meals for his wife, spending time with his family and camping throughout the Adirondacks.
