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Scaffold Law Reform Eyed as Costs Climb

Contractors and property owners across New York face insurance premiums two to five times higher than other states.

Updated on Nov. 3, 2026 in Construction

Bold flat-color editorial illustration of a steel scaffold frame in front of a brick facade with a yellow hard hat, evoking construction liability costs.
New York lawmakers are weighing reforms to the Scaffold Law, which holds contractors and property owners fully liable for gravity-related job-site injuries as insurance premiums climb. AI Illustration. Upload story photo >

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Supporters pushed New York to reform the Scaffold Law, which holds general contractors and property owners fully liable for gravity-related construction injuries. Construction firms and property owners face rising insurance costs, and the state is weighing a reform package.

Why it matters

The Scaffold Law is the only law of its kind in the state, and its strict liability standard feeds into insurance premiums for builders and property owners. Some carriers have exclusion clauses barring New York policies, which shrinks the pool of underwriters and pushes premiums higher.

Enterprise Community Partners' insurance costs rose 169% between 2018 and 2025 across its roughly 200 New York properties. The Building Trades Employer Association reported New York insurance costs running two to five times higher than in other states.

The players

Enterprise Community Partners

A national nonprofit that finances and develops affordable housing, with roughly 200 properties in New York.

Building Trades Employer Association

A New York trade association representing construction employers that tracks industry insurance costs.

Andrew Cuomo

Former New York governor who opposed changing the Scaffold Law roughly a decade ago.

The details

The Scaffold Law makes general contractors and property owners fully liable for gravity-related injuries on job sites, without apportioning fault among parties. The reform package under discussion would create comparative liability, dividing responsibility among the parties involved. It would also cap damage awards to plaintiffs and require disclosure of third parties funding personal injury cases.

Timeline

  1. Between 2018 and 2025, Enterprise Community Partners' insurance costs rose 169%.

  2. Roughly a decade before 2026, former Gov. Andrew Cuomo opposed changing the Scaffold Law.

  3. In 2025, the Building Trades Employer Association reported New York insurance costs two to five times higher than other states.

  4. On November 3, 2026, Enterprise Community Partners released its insurance cost report.

Market Landscape

The Scaffold Law has drawn repeated reform pressure since Cuomo rejected changes about a decade ago. The current push comes as the Hochul and Mamdani administrations weigh insurance reforms.

Contractors and property owners in New York should factor in continued insurance cost volatility while reform remains under consideration. Co-op and condo boards should review their coverage terms with a qualified insurance broker.

The takeaway

Builders and property owners should track whether the comparative liability and damage-cap proposals advance in Albany, since they would directly reshape premiums. Review current policy exclusions with a licensed broker before the next renewal.

Further reading

For context on the cost pressures facing builders, see the Construction section.

Source note: This article includes information reported by Habitat: Co-op/condo Real Estate.

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Should New York limit lawsuit payouts to lower building insurance costs?