Enacts the "construction insurance transparency act" to require insurers providing coverage for liability under the scaffold law to report, on an annual basis, to the superintendent of financial services relating to its finances and claims paid thereunder.
S08200 would create the “construction insurance transparency act of 2025” and add a new section to the Insurance Law requiring insurers that write liability coverage for claims brought under Labor Law section 240, the “scaffold law,” to file annual financial statements and detailed claim data with the Superintendent of Financial Services. The bill requires insurers to disclose, for the prior year and in the first filing, the prior nine years as well, information such as premiums attributable to scaffold-law coverage, paid losses and settlements, reserves, defense costs, claim counts, investment income, exposure, risk-management spending, and other expense categories. It also requires itemization by policy characteristics and zip code, and directs the superintendent to issue annual public reports summarizing the data and recommending ways to reduce premiums and improve worksite safety.
The bill also establishes public-access requirements and enforcement mechanisms. The superintendent must make the filings available on the department website in plain English and spreadsheet format, and the information is deemed a public document. If an insurer fails to comply, the superintendent may impose civil penalties of up to $50,000 per violation, suspend the insurer’s ability to issue additional policies until compliance is achieved, or order an audit at the insurer’s expense. The chief executive officer signing the filings would be personally responsible for accuracy and could also face penalties. The act would take effect on January 1 following enactment.
This bill would amend the New York Insurance Law by adding a new reporting and disclosure regime specifically for insurers covering Labor Law section 240 exposure. It would not change the scaffold law itself, but it would require insurers to separate and report financial and claims information tied to that coverage, expanding state oversight of pricing, losses, reserves, and related expenses. The measure would affect property/casualty insurers writing construction-related liability policies, as well as the Department of Financial Services, which would gain new data collection, publication, and enforcement responsibilities.
The bill text reflects a strongly supportive posture toward transparency, public disclosure, and scrutiny of insurer pricing for scaffold-law coverage. Its findings section argues that premiums and solvency information have remained too opaque and that the public, insureds, and future insureds deserve fuller disclosure. No committee transcripts or recorded votes were provided, so there is no documented legislative debate or vote history to indicate broader support or opposition beyond the bill’s pro-transparency framing.
The likely points of contention are the breadth and intrusiveness of the reporting requirements, the public release of detailed insurer financial and claims data, and the compliance burden on insurers. Insurers may object to the requirement to disclose extensive underwriting, claims, expense, and compensation information, including zip-code-level claim data and the salaries of top employees, even though names are not required. Another likely issue is the bill’s enforcement structure, including substantial civil penalties, possible suspension of writing authority, and personal liability for executives. Supporters are likely to be construction industry stakeholders, property owners, contractors, and transparency advocates seeking justification for high premiums, while opponents are likely to be insurers concerned about confidentiality, administrative cost, and the potential for public misunderstanding of actuarial data.