March 8 – State Sen. Neil Breslin and Rep. David Weprin are pushing for passage of a bill that would make staging a twist of fate at the site of a structure a Class E felony, in an effort to combat what they call a developing insurance trend. fraud.
Speaking Tuesday at the state Capitol, Breslin, D-Albany, said Americans and criminal organizations are increasingly structuring on-site injuries to record false insurance claims.
“This type of crime wants to be seriously punished, because the result of this type of crime is to tell property owners and developers that they can be charged a lot more because we have insurance,” said Breslin, the board president. Senate Ethics and Internal Governance and Assurance Committees. “And when we have insurance, we have to measure our threat, and measuring the threat means that if we let this insurance fraud continue, the insurance charges will just go unnoticed and skyrocket and the companies will have to endure, which raises charges.
Weprin, chairman of the Assembly’s insurance committee, said emerging insurance costs ultimately lead to higher structure costs, which may have a negative effect on the industry as the state aggressively pursues the construction of new affordable housing projects.
“Contractors and developers face exorbitant insurance premiums, which in the end are passed on to consumers and lead to higher housing prices for all New Yorkers,” Weprin said. “In the first six months of 2022 alone, workers’ pay premiums increased by an average of 10. 1%. These premium increases exceeded the rate of inflation. A recent study found that insurance premiums for structural companies and contractors in New York are 400% higher than the national average. »
Weprin said the legislation is modeled after Alice’s Law, which created criminal penalties for people who stage car accidents for the purposes of insurance fraud. The bill was named after a 71-year-old Queens woman, Alice Ross, who was killed in a staged accident in 2003. Weprin also sponsored that proposal, which was signed into law by former Gov. Andrew Cuomo in 2019.
During Tuesday’s press conference, Brian Sampson, president of the Empire State Chapter of the Associated Builders and Contractors, broke down some of the increase in costs construction companies are facing due to the problem.
“In 2010, a $100 million project in the state of New York was looking at about 4% of the cost of that project going towards workers’ compensation, general liability and excess insurance,” Sampson said. “Fast forward to 2020, that number jumped to about 8.5%. In 2024/2023, that number has gone up to 12.5%. Looking ahead to 2025, they’re expecting that number to go to 13% or 14% on a $100 million project.”
He also compared New York’s rates to those in neighboring states, such as Connecticut, New Jersey and Pennsylvania, which he said are around 2. 5 percent.
“When you look at things like affordable housing, when you look at things like market-rate housing, you’re going to lose 40 to 45 to 50 units for every one of those projects,” Sampson said. “We have a crisis here in the state of New York that has to be fixed.”
The Pennsylvania Department of Insurance publishes public information for the Department of Labor.
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