A recent article titled “Construction Industry Advocates Say Accidents Being Faked in NYC” brings to light some troubling challenges facing the construction industry today. While the article touches on accusations of fraudulent injury claims and their impact on businesses, it also highlights a crucial reminder for property owners, managers, and anyone hiring contractors: working with a properly insured company isn’t just smart — it’s absolutely vital.
At A.G. Williams Painting Company, we have over a century of experience navigating the evolving landscape of commercial projects, regulations, and risk management. Today, we want to take the opportunity to step back from the politics of these discussions and instead focus on the practical side: what property owners, facility managers, and commercial clients really need to know about insurance when selecting a contractor — and why the old ways of asking “Are you insured?” simply aren’t enough anymore.
The Real Issue: Why Strong Insurance Policies Matter
When you hire a commercial painting or home improvement company, you aren’t just paying for a service — you’re assuming a degree of risk. Accidents happen. Even the most seasoned, careful crew can face unexpected challenges, from slip-and-falls to property damage. That’s why insurance exists: to protect both the service provider and the client.
The issue raised in the article about alleged faked injuries only underscores the point that claims — legitimate or otherwise — can cost contractors and their clients millions (Coalition Against Insurance Fraud Report). When companies are inadequately insured, or worse, when they have improper or minimal coverage, the financial risk can fall onto the property owner.
This is especially true in places like New York, where laws such as NY State Labor Law 240 and 241 (commonly called the “Scaffold Law”) hold property owners and contractors strictly liable for gravity-related accidents. Even if a contractor provides a Certificate of Insurance, unless their policy includes specific contractual liability coverage with no exclusions for labor law claims, the building owner can still be sued.
Without the right protections, you could face lawsuits, property liens, or even personal liability (U.S. Small Business Administration).
Beyond “Are You Insured?”: What Clients Need to Ask Today
Once upon a time, it might have been enough to ask, “Are you licensed and insured?” and accept a simple “yes” or a Certificate of Insurance (COI) as proof. Not anymore.
Today, savvy clients know they need to dig much deeper:
What type of insurance does the company carry?
At a minimum, a reputable contractor should carry both General Liability Insurance and Workers’ Compensation Insurance (The Hartford). However, that’s just the start. Especially in New York, they also need contractual liability coverage with no labor law exclusions to properly protect the property owner against Scaffold Law claims.
How much coverage do they have — and for what?
Policies are not one-size-fits-all. A company managing a simple office repaint needs different insurance than one restoring a high-rise exterior. You must ask about both the coverage limits and whether labor law coverage is included.
Is the policy current and active — and verified?
Always request a Certificate of Insurance directly from the insurer (IRMI – Avoiding Common Insurance Certificate Errors). Even better, request an Acord 855 form, which outlines additional insured coverage, contractual liability, and labor law protections (NY State 240/241 & Indemnification Document).
Does it cover subcontractors too?
Subcontractors must be covered under the general contractor’s policies. If not, the building owner can be exposed to additional lawsuits.
What safety record and compliance measures are in place?
Insurance is the backstop — but proactive safety management dramatically reduces the need for claims. Ensure the contractor follows recognized standards like OSHA’s Construction Regulations.
At A.G. Williams Painting Company, we structure our insurance to go beyond basic requirements — fully protecting our clients under New York and Connecticut indemnification standards.
The Bigger Picture: Protecting Your Business and Reputation
In today’s environment, where litigation can arise from genuine accidents or suspicious claims alike, your choice of contractor has ripple effects beyond a single project.
Without comprehensive insurance that includes proper indemnification:
- Your personal or business insurance could be dragged into expensive lawsuits.
- You could face spiking insurance premiums or even lose coverage (NY Department of Financial Services – Small Business Insurance Risks).
- You could be held directly liable under NY Labor Law 240/241, even if the contractor signed a “hold harmless” agreement but lacked the right policy.
- Your business reputation could be damaged.
At A.G. Williams, our indemnification agreements and carefully structured insurance policies protect building owners, managers, and business leaders from these risks — because we believe your project deserves more than just surface-level assurances.
Transparency Builds Trust
In industries like construction, painting, and home improvement, trust is everything. The landscape has changed. Simply trusting a contractor’s word or flashing a quick certificate is no longer enough to protect your property, your people, or your business. The allegations mentioned in the article — regardless of where the truth ultimately lies — remind us all that scrutiny is increasing. Clients need to work with companies that are transparent, reliable, and proactively protective of their clients’ interests.
Ask the right questions. Demand transparency. Expect better.
At A.G. Williams, we don’t just tell you we’re insured — we show you. We walk our clients through our insurance certificates, explain what’s covered, and answer any questions they may have. It’s part of how we build lasting relationships, whether we’re working with a daycare, hospital, university, country club, or large condominium association. With over 100 years of proven expertise and a dedication to excellence, we are proud to be a fully insured, deeply experienced partner for all your commercial painting and maintenance needs.
Because protecting your property isn’t just about beautiful results — it’s about smart, safe, and reliable choices every step of the way. Contact us if you have any questions.