Overview
- HR&A Advisors and the Building Trades Employers’ Association released a Dec. 10 report using proprietary data that links the Scaffold Law’s absolute-liability standard to insurance costs 200%–500% above peer states.
- The study estimates premiums now absorb 8%–10% of New York development budgets versus 2%–4% elsewhere, diverting funds from public works and private building.
- Project-level modeling cites potential savings of up to $560 million on the Penn Station redevelopment and up to $550 million on Second Avenue Subway Phase 2, with the MTA singled out for heavy insurance burdens.
- The analysis includes a Bronx affordable housing example with $15 million to $30 million labeled as wasted premiums and alleges widespread staged-accident litigation inflates costs.
- Supporters of the law, including labor leaders, call it essential for worker safety, while proposals under discussion include Rep. Nick Langworthy’s bill to exempt federally funded or permitted projects; Gov. Kathy Hochul’s office had not commented in the cited coverage.