A new bill introduced in the New York State Senate aims to shed light on how insurers determine premiums and manage claims tied to the state’s Scaffold Law.
Titled the “Construction Insurance Transparency Act of 2025,” the proposed legislation would require insurers that issue liability coverage for claims made under Section 240 of the state labor law to file detailed financial statements and claim data annually with the state’s superintendent of financial services. The measure was introduced on May 20, 2025 and referred to the Senate Committee on Insurance.
The bill would mandate that insurers disclose a breakdown of premiums collected specifically for Scaffold Law-related risks, as well as paid judgments, case reserves, incurred but not reported loss estimates, and defense expenses. Insurers would also be required to report on investment income derived from these premiums, salaries of their 20 highest-paid employees, and detailed cost information, including advertising, consulting, and legal fees.
The initial financial statement, due April 1 following enactment, must cover not only the prior calendar year but also the previous nine years. Subsequent filings would be submitted annually by April 1.
Each report would need to separate Scaffold Law coverage costs from general liability costs and provide data broken down by policy limits, deductibles, payroll ranges, and zip codes, among other variables. Additionally, insurers must submit a synopsis of claims and settlements paid, signed and attested to by their chief executive officer, who would be held personally responsible for its accuracy.
The bill requires that this information be made available to the public both in written form and through the Department of Financial Services website, with documents presented in spreadsheet format. Reports summarizing the findings and offering recommendations for worksite safety improvements are to be issued by the superintendent by July 1 each year.
The superintendent would also have the authority to enforce compliance, including imposing penalties of up to $50,000 per violation, suspending the insurer’s ability to issue policies, or initiating a department-funded audit.
The act, if passed, would take effect on January 1 following its enactment.
