A.5811, a bill recently introduced to the New York state Assembly, would shine a light on how insurers handle liability coverage under the state’s infamous “Scaffold Law” (Labor Law Section 240). This law holds property owners and contractors absolutely liable for height-related injuries to construction workers, regardless of fault.
Under this new bill, insurers that provide liability coverage for Scaffold Law-related claims would be required to file detailed annual financial and claim-related data with the New York State Department of Financial Services. This would include breaking out premiums, settlements, judgments, legal expenses, and other related costs—essentially separating out the costs of Scaffold Law coverage from other general liability exposures.
This information would be required to be made public in an accessible format and submitted electronically, with insurers’ CEOs personally attesting to their accuracy. Insurers that would fail to comply would face stiff penalties, including fines, audits, or even temporary suspension of their ability to issue policies in New York state.
Impact on insurance businesses and the market
The bill could usher in a significant shift in how insurance companies do business in New York’s construction sector, such as through:
Transparency pressure. Carriers would need to justify their Scaffold Law-related premiums with hard data, which could lead to pricing recalibrations and increased scrutiny over actuarial practices.
Operational burden. Collecting and reporting this level of granular data—especially retroactively for nine years during the first filing—would likely increase administrative costs.
Market behavior. Some insurers may reconsider their exposure in New York state due to the reporting demands and liabilities under Scaffold Law, potentially tightening the market further.
Risk management incentives. The bill would encourage the use of safety programs. Therefore, insurers that invest in or promote such efforts might benefit from lower losses and improved public perception.
Practical tips for insurance agents
Insurance agents and brokers—especially those operating in construction-heavy regions of New York—should consider the following strategies in preparation for if this bill is signed into law:
Stay informed. Track updates from the DFS regarding filing formats and deadlines. The first reports will be due on April 1 each year.
Educate your clients. Help property owners and contractors understand how this transparency may affect their premiums, and what they can do to improve their risk profile.
Promote safety programs. Encourage clients to adopt risk management protocols and worksite safety initiatives (or maintain them as best possible), since these actions might not only prevent accidents, but they also could become key in future underwriting decisions.
Watch the market. Be aware of potential market exits or pricing changes from carriers— especially smaller or regional insurers that may struggle with the compliance load.
Position yourself as a resource. With data becoming publicly accessible, agents can review reports to strengthen their positions as sources of information for their clients and to better advise them on carrier choices and claim trends.
Final thoughts
The Construction Insurance Transparency Act of 2025 would be a landmark move in New York’s ongoing struggle to balance construction site safety with insurance market stability. While it would place a heavier reporting burden on insurers, it also would increase fairness and accountability in premium pricing.
For agents, this is an opportunity to deepen client relationships by guiding them through an evolving insurance landscape that’s becoming more data-driven and risk-focused.
PIANY will continue to monitor A.5811 as it continues to move through the legislative process.
Get involved
If you want to get involved with PIANY’s legislative and advocacy work, there are many ways to engage with the association:
- Participate in PIANY’s District Office Visit Program;
- Become a member of Agents Advocacy Coalition; and
- Watch your PIA Northeast publications and PIA Northeast’s social-media channels for important New York updates and share them with your followers.
Danielle Caswell, Esq.
Danielle Caswell joined PIA Northeast as associate counsel in the Government & Industry Affairs Department in 2023. She earned her bachelor’s degree from New York University and her law degree from Brooklyn Law School with a particular focus on intellectual property, information, and media law. Prior to joining PIA, Danielle was an associate at a law firm in New York City where she focused primarily on intellectual property and entertainment-related transactional and litigation matters.
