Rob Coppola Senior Account Executive – Construction Insurance Practice Group View Bio

Scaffold Safety, Construction

New York’s Scaffold Law was enacted in 1885 to protect construction workers from gravity-related accidents, such as falls from scaffolds or ladders as low as one foot in elevation, and has expanded to include allegations of unsafe construction work site conditions. At a time when workplace safety regulations were minimal, this law aimed to hold property owners and contractors strictly liable for such injuries, regardless of fault or negligence. This absolute liability standard was intended to ensure that injured workers had a clear path to compensation.

Over time, however, the construction industry has seen substantial improvements in safety standards, oversight, and regulatory enforcement. Yet, the Scaffold Law remains unchanged in its original form. As a result, the strict liability provision—unique to New York—has led to unintended consequences. Among the most pressing concerns are the opportunities it creates for fraudulent or exaggerated claims.

In many cases, injured workers are able to bypass traditional workers’ compensation systems and pursue legal action against property owners, general contractors, and even equipment manufacturers. These lawsuits can proceed even when the worker’s own actions contributed to the incident, and often offer little room for defense by the accused parties.

Some claimants, assisted by unethical legal or medical professionals, have reportedly staged accidents or overstated injuries. These actions can lead to costly litigation and significantly impact the operations of contractors, developers, and public agencies alike.

Financial Impact on Public and Private Sectors

The cost of defending against such claims—whether successful or not—includes legal fees, investigation expenses, and insurance premium hikes, in addition to reputational risks. The economic impact is especially pronounced in the public education and infrastructure sectors:

  • The New York State School Boards Association reports that Scaffold Law-related insurance and liability expenses cost Upstate New York schools approximately $200 million annually.
  • In New York City, the School Construction Authority’s insurance costs reached $240 million in a single year, a figure equivalent to the construction of eight new schools over a three-year period.
  • Industry-wide, Scaffold Law-related expenses consume an estimated $785 million in public funds each year.
  • According to the Empire State Chapter of the Associated Builders and Contractors, insurance costs on large construction projects have risen from around 4% of total project value in 2010 to over 12% by 2023–2024.

Higher deductibles, increased premiums, and reduced insurer participation are adding financial strain to contractors, particularly those with prior Scaffold Law claims. This environment has made it increasingly difficult for some firms to stay competitive or take on large-scale projects.

Addressing Abuse and Seeking Reform

In response to these challenges, legislative proposals have emerged to mitigate fraudulent claims without undermining worker safety. One such measure introduced in Albany would classify the deliberate staging of construction accidents for the purpose of insurance fraud as a felony offense—mirroring previous legislation targeting staged auto accidents.

While the Scaffold Law remains rooted in a commitment to worker protection, evolving industry practices and the increasing cost of litigation have prompted a call for more balanced solutions. Future reforms may help preserve the law’s original intent while reducing the financial and operational burdens currently facing the construction sector.

 

RESOURCES

Scaffold Law Reform Coalition | www.scaffoldlaw.org

Video:  ABC News | Insurance Fraud Concerns Over Alleged Staged Workplace Accidents