Bill > A05811

This bill enacts the "Construction Insurance Transparency Act of 2025," which requires insurers who provide liability coverage under New York's "scaffold law" (Section 240 of the Labor Law) to submit comprehensive annual financial reports to the superintendent of financial services. Specifically, insurers must provide detailed financial statements by April 1st each year, covering information such as premiums specifically attributed to scaffold law coverage, paid judgments and settlements, case reserves, defense expenses, claim statistics, risk management program costs, and investment income. The reports must break down financial information by various risk factors and clearly separate scaffold law coverage from general liability insurance. The superintendent is required to make these reports publicly available on their website in an easily understandable format, with aggregated claim data that does not identify specific individuals. By July 1st each year, the superintendent must also issue a summary report analyzing the collected data and recommending ways to improve worksite safety. Insurers who fail to comply can face significant penalties, including civil fines up to $50,000, temporary suspension of policy issuance, and mandatory audits. The bill aims to increase transparency in how insurers calculate and manage liability insurance costs for construction-related risks.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A5811