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IIABNY Calls for Reform of Scaffolding Law, Other Laws and Regulations at Senate Forum

Group’s chairperson calls laws ‘antiquated’

(New York, New York, Oct. 8, 2013) — New York’s scaffolding law is harming the state’s economy, a spokesman for the Independent Insurance Agents & Brokers of New York (IIABNY) told the State Senate today. IIABNY Chair of the Board Andrew Kaufman said that the law should either be reformed or repealed outright.

The scaffolding law is comprised of Sections 240 and 241 of the New York State Labor Law. “Because of these antiquated laws, insurance on construction projects for both owners and contractors has become increasingly expensive and the market for this coverage severely restricted,” Kaufman said. “Lack of coverage is preventing construction projects from proceeding, costing New York State jobs. When coverage can be obtained, the cost of construction is needlessly driven up.”

Section 240 requires property owners and contractors performing construction work to give workers specific safety devices. New York courts have interpreted the law to hold owners and contractors absolutely liable for workers’ injuries. This means that they are barred from raising defenses in court on their own behalf. Section 241 holds them responsible for worker injuries even if they were not directly controlling or supervising the worksite. Large legal settlements have been paid even when a worker’s own actions contributed to the accident.

IIABNY has long supported scaffolding law reform. Kaufman urged its repeal or reform so that courts can consider evidence of a worker’s contribution to the accident. He cited Senate Bill 111, sponsored by Sen. Patrick Gallivan (R – Elma) as a good measure.

Kaufman made his remarks at a forum on regulatory reform held at the New York State Senate’s office building in Manhattan. The Senate Majority Coalition, which sponsored the forum, invited guests to suggest laws and regulations that should be reformed or repealed. Kaufman advocated several other reforms, including:

Repeal of the regulation that requires all insurance producers to disclose to consumers in writing how insurance companies and others compensate them for the sale of insurance. Kaufman called this a “paperwork and record retention burden for producers” in which insurance consumers have shown little interest.
Ending an informal New York State Department of Financial Services (DFS) rule requiring producers to take exams for continuing education credit in the presence of a monitor. Kaufman said New York does not require this for other professions subject to continuing education requirements.
Relaxing New York’s regulation requiring insurance companies to inspect automobiles before insuring them against physical damage.
Permitting New York to join 28 other states that allow electronic I.D. cards displayed on smart phones as proof of automobile liability insurance.
Repeal of a law that requires any producer advertisements that call attention to an insurance company to include that company’s full name and the location of its principal office. Kaufman argued that this requirement is unnecessary because consumers today recognize company logos. He said that IIABNY supports Senate Bill 3064, sponsored by Senate Insurance Committee Chair James L. Seward (R-Milford), which would repeal this requirement.

The Independent Insurance Agents & Brokers of New York, Inc. has represented the common business interests of independent insurance professionals since 1882. More than 1,750 agencies and their 13,000 plus employees currently rely on the DeWitt, New York-based not-for-profit trade association for legislative advocacy, continuing education and other means of industry support. In addition, most IIABNY members proudly identify themselves as Trusted Choice® agents and brokers, a national consumer brand uniting more than 21,000 independent agencies across the United States. For more information, go to www.trustedchoice.com or www.iiabny.org.