Governor Kathy Hochul at Andromeda!
- Andriana Vamvakas
- 12 minutes ago
- 3 min read
On May 20, 2026, Andromeda was honored to welcome New York Governor Kathy Hochul to our offices for an important discussion with approximately 40 to 50 industry leaders, partners, and stakeholders. The gathering brought together professionals from the construction and insurance sectors to address some of the most pressing challenges affecting New York’s businesses, workforce, and economy.
A major focus of the discussion was the growing impact of insurance fraud and staged construction-site accidents, issues that have intensified since the pandemic. These fraudulent activities place significant financial strain on honest contractors who are already facing rising insurance premiums and increasing operational costs. They also create additional burdens for taxpayers and the broader economy.
As a company committed to fighting fraud, Andromeda has been at the forefront of identifying and addressing these schemes. The event provided a valuable opportunity to discuss the scope of the problem, share industry perspectives, and explore potential solutions.
Governor Hochul delivered remarks and engaged directly with attendees during an interactive question-and-answer session focused on insurance challenges, staged accident fraud, and the broader issues facing New York's construction and business communities.
One of the central topics was New York Labor Law §§ 240 and 241, commonly known as the Scaffold Law, and its far-reaching impact on construction professionals, workers, property owners, taxpayers, and the state's economy.
Originally enacted in 1885 to protect workers from elevation-related hazards, the law has evolved through decades of court decisions into a system of absolute liability. Under the current framework, property owners and contractors are held liable for certain elevation-related injuries regardless of fault, safety measures implemented, or the specific circumstances of an incident. New York remains the only state in the nation with this standard.
While worker safety remains a top priority, many industry stakeholders have expressed concerns about the law's economic consequences. Discussions focused on how escalating insurance costs, increased project expenses, and reduced competitiveness continue to affect construction activity across the state.
Industry research, including analyses conducted through Project 240, suggests that the current framework may contribute to significant economic inefficiencies. Some estimates indicate that as much as $20–35 billion annually may be tied to a shadow economy driven by litigation costs, claims expenses, and related inefficiencies, resources that could otherwise be directed toward productive construction activity, infrastructure improvements, and enhanced worker protections.
Recent studies have also highlighted the disproportionate cost of insurance in New York's construction market. In New York City, insurance expenses can account for 8 to 10 percent of total development costs, significantly higher than in states operating under comparative-negligence standards. These added costs can affect infrastructure investment, affordable housing development, and job creation throughout the state.
Many industry participants believe the current system creates unintended consequences that place additional pressure on responsible contractors while doing little to improve workplace safety outcomes.
Governor Hochul also discussed broader insurance reform initiatives underway in New York, including measures incorporated into the state budget aimed at combating auto insurance fraud and improving market stability. These efforts reflect an ongoing commitment to reducing fraudulent claims, controlling costs, and creating a more balanced insurance environment for businesses and consumers alike.
The conversation underscored the strong connection between insurance reform and economic growth. Addressing fraud, inefficiencies, and rising costs is essential to maintaining a healthy business climate while preserving meaningful protections for workers and consumers.
The event reinforced the importance of thoughtful, data-driven reforms that can strengthen safety standards while improving affordability, transparency, and competitiveness across New York's construction and insurance industries.
We are grateful to Governor Hochul for taking the time to meet with our industry community and participate in such a productive and candid discussion. Her visit demonstrated the value of collaboration between government officials, business leaders, and industry stakeholders in tackling complex challenges and identifying opportunities for meaningful progress.
At Andromeda, we remain committed to fostering dialogue and keeping our community informed on the issues shaping our industries. We look forward to continuing these conversations and sharing future updates in upcoming editions of SKYlines: DIGITAL NEW ERA as developments unfold regarding the Scaffold Law, insurance reform, and other issues impacting New York’s business community.
