The New York Labor Law applies strict liability against building owners for nearly any fall by a worker from nearly any height on a jobsite.  This unique feature of New York law has led to an avalanche of claims – many inflated and many outright fraudulent – that has led to a crisis of construction claims for property developers and the insurance industry, including legacy books with construction or workers’ compensation exposure.  But recent developments in 2024 provide some hope for the industry in turning the tide against fraudulent and inflated claims.  This session will explore many aspects of this growing issue including how the claims work and how they have grown over recent years, potential legislative developments to address them, review Federal racketeering litigation brought by insurance industry companies against the alleged players in the fraudulent conspiracy, and what these developments might mean for valuing and handling legacy books with these exposures.

Panelists:

Christopher Carucci, Senior Vice President of Claims, Gallagher Bassett

Sean Keely, Partner, Smith, Gambrell & Russell, LLP

Andrea Silk, Managing Attorney, Gallo Vitucci Klar LLP