New York Labor Law 240, commonly known as the Scaffold Law, is one of the most important legal provisions impacting the construction industry in New York State. Originally enacted in 1885, this law imposes absolute liability on property owners and general contractors when workers are injured in gravity-related accidents—such as falling from a height or being struck by a falling object—during certain types of construction work.
For insurance agents serving New York contractors, real estate developers, and property owners, understanding Labor Law 240 is essential to ensuring proper risk transfer and insurance coverage. At Novatae, we help retail agents navigate the complexities of this legal landscape and access the labor law liability coverage their clients need.
Section 240 of New York Labor Law requires contractors, owners, and their agents provide workers with safety equipment—such as scaffolding, ladders, hoists, and ropes—when performing construction work at heights. The law applies to activities including:
If a worker is injured due to inadequate or missing safety devices in one of these scenarios, the owner or contractor is strictly liable, regardless of fault. That means the injured party can sue outside the bounds of workers’ comp.
This legal framework is especially critical in New York, where construction remains one of the most hazardous industries. According to OSHA, falls account for 39.2% of all construction-related fatalities nationwide—the single leading cause of death on job sites. In New York City alone, there were 287 construction injuries and 5 fatalities reported in the first six months of 2019. These numbers underscore why Labor Law 240 exists: to enforce safety accountability in an industry where working at height is routine—and often dangerous.
The Scaffold Law protects workers involved in elevation-related construction tasks, including:
Coverage is not limited to traditional scaffolding tasks—any worker injured due to a height-related hazard while performing a covered activity may have a valid Labor Law 240 claim.
It does not apply to:
Because it assigns absolute liability to owners and contractors, NY Labor Law 240 has far-reaching implications for how risk is managed on New York construction sites. Unlike typical negligence-based claims—where fault can be split between parties—Section 240 places full legal responsibility on upstream parties when gravity-related injuries occur, even if they were not directly involved in the incident.
This absolute liability structure means:
While this legal framework was originally intended to protect vulnerable workers, it has also made New York one of the most challenging insurance markets in the country. The absolute liability standard has led to higher claim volumes, more frequent litigation, and soaring insurance premiums, particularly for general liability and excess lines.
For insurance agents and risk managers, this makes Labor Law-specific insurance coverage non-negotiable. Contractors and property owners must have policies that are free of Action Over exclusions and specifically structured to respond to Labor Law 240 exposures—or risk facing millions in uncovered losses.
It’s a common misconception that filing a claim under Labor Law 240 replaces or negates the need for workers’ compensation—but in reality, the two can and often do coexist.
Workers’ compensation is designed to provide no-fault coverage for injured employees, offering basic benefits like medical care, wage replacement, and partial disability payments. While essential, these benefits are typically limited and do not account for pain and suffering, long-term disability, or future lost earnings—especially in the case of severe or life-altering injuries.
That’s where Labor Law 240 comes in. Because it imposes absolute liability on property owners and general contractors for elevation-related injuries, it allows injured workers to pursue civil lawsuits for significantly higher damages, including compensation for non-economic losses. These lawsuits can lead to multimillion-dollar settlements—regardless of whether the worker already received workers’ comp.
This dual-track exposure creates a hidden vulnerability: owners and GCs often believe they’re protected through workers’ comp policies, only to discover after an accident that they’re also subject to civil litigation under Labor Law 240. Worse, many general liability (GL) policies—especially those written without New York-specific underwriting—include Action Over, Employee Injury, or Labor Law exclusions that eliminate coverage for these very claims.
That’s where Novatae becomes a critical partner. We help insurance agents identify and fill these labor law coverage gaps by:
In a state where one injury can lead to both a comp claim and a civil suit, ensuring Labor Law 240 coverage isn’t optional—it’s mission-critical.
Labor Law 241 works alongside Section 240 to provide additional protections for workers involved in construction, demolition, and excavation activities. While Section 240 focuses specifically on gravity-related hazards, Section 241 is more prescriptive—requiring that contractors, owners, and their agents implement specific safety measures and site protocols to protect workers during high-risk operations.
The law mandates:
Unlike Section 240, which applies primarily to elevation risks, Section 241 covers a broader range of operational safety concerns—such as trip hazards, unsecured materials, or improperly installed safety barriers. It applies to both commercial and large-scale residential projects, placing liability on the same upstream parties: general contractors, property owners, and developers.
Because of its detailed nature, Section 241 is often cited in tandem with Section 240 in injury claims, especially when falls or equipment failures are involved. Insurance policies that exclude coverage for Section 241-related claims can leave contractors dangerously exposed, making it essential for agents to ensure labor law coverage is robust enough to handle the full spectrum of New York liability.
Labor Law 200 is often referred to as New York’s “general duty” clause, and it lays the foundation for safe working conditions across all construction and industrial job sites. Unlike Sections 240 and 241—which address specific scenarios—Section 200 applies broadly to any instance where an employer fails to provide a safe workplace.
The law requires that owners and contractors:
Section 200 allows for claims based on general negligence, meaning that if a contractor or site owner is found to have been careless or inattentive to jobsite safety—regardless of whether a scaffold or ladder was involved—they may be held liable. This includes everything from failing to post warnings about dangerous equipment to overlooking poor lighting or structural hazards.
It is also frequently cited alongside OSHA violations, especially in cases involving unsafe conditions that led to injury. Because of its wide applicability and overlap with federal regulations, Section 200 claims can be particularly difficult to defend—and therefore require thorough risk management and clear documentation of site safety practices.
As with the other labor laws, Section 200 exposures must be considered when selecting or structuring insurance coverage. A general liability policy alone may not be enough—especially if it contains exclusions that reduce or eliminate coverage for jobsite negligence claims. Retail agents should work with experienced wholesale brokers to secure comprehensive protection for clients exposed to Section 200 liability.
New York’s labor laws—especially Section 240—create one of the most challenging insurance landscapes in the country. Due to the state’s strict liability structure and high litigation rates, many carriers either avoid these risks altogether or issue policies with narrow exclusions that severely limit protection. As a result, retail agents often struggle to find comprehensive coverage for contractors, subcontractors, and property owners operating within New York.
At Novatae, we specialize in helping agents navigate these complexities and secure Labor Law-compliant insurance solutions built for New York’s legal environment. Our underwriting teams and wholesale brokers assist agents in:
For agents, understanding these levers is not just about quoting the right product—it’s about proactively protecting clients from financially devastating claims and preserving trust in high-risk, high-exposure industries.
At Novatae, we do more than place coverage. We equip agents with the tools, guidance, and carrier access needed to succeed in the toughest state in the country for labor law liability.
The strict liability imposed by NY Labor Law 240 makes construction placements in New York some of the toughest in the country—but with the right partner, they don’t have to be.
Novatae’s underwriters and wholesale brokers are experienced in labor law-exposed classes and can help you find the right solution for hard-to-place risks.
This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.