Definition
What is New York Labor Law §§ 240/241 (Scaffold Law)?
New York Labor Law §§ 240 and 241 impose heightened, often “absolute,” liability on building owners and general contractors for certain gravity-related (height) and construction-site injuries to workers — regardless of the owner’s own fault.
What it means in practice
Section 240 (the “Scaffold Law”) addresses elevation-related risks such as falls and falling objects; Section 241(6) addresses broader construction, excavation, and demolition safety. Because liability can attach to the building owner even without owner negligence, an injured employee of a contractor can pursue the owner. Effective risk transfer — indemnity plus additional-insured coverage without a Labor Law or height exclusion — is how owners shift this exposure back to the contractor and its insurer.
A contractor’s general liability policy that carries a Labor Law exclusion or a height/“exterior work” exclusion can defeat the transfer, leaving the building exposed on exactly these claims. Whether an exclusion applies is read on the policy and its endorsements, not on the certificate of insurance, and insurers scrutinize this in New York. This is general information, not legal or coverage advice.
Key points for boards
- Applies in New York; liability can reach owners regardless of their own fault.
- An injured contractor employee may be able to sue the building owner.
- A Labor Law or height exclusion on the contractor’s policy can break risk transfer.
- Confirm exclusions on the policy/endorsement with a broker or counsel — the certificate will not show them.