Category: 2026

The Hidden Costs Impacting Construction Risk in 2026

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By: Brett Findlay, Senior Vice President, Construction Practice Leader, OneGroup

Construction firms across Central New York are seeing some stabilization in the insurance marketplace after several years of sharp increases. In certain areas, rates are beginning to soften and capacity is improving. However, many contractors are still experiencing higher overall insurance costs, even when rate and premium increases appear more moderate on paper.

The reason is simple: while portions of the insurance market may be easing, the underlying cost of construction risk continues to rise.

From labor shortages and wage inflation to escalating material costs and larger claim settlements, contractors are operating in an environment where even a relatively routine loss can become significantly more expensive than it was just a few years ago.

Locally, the time a project takes to complete has increased, the cost of the materials for that project have increased and the pay scale for the employees executing that project have increased. All those variables can and do drive insurance costs.

What further amplifies those variables is the onset of large local projects like I-81 & Micron that are utilizing much of the local labor force. With companies struggling to find labor to complete their backlog, traditional infrastructure projects and other private projects face longer project timelines. Outside labor is going to become a necessity; subcontracting, is going to become a necessity. Those exposures have insurance costs as well.

One of the largest drivers is construction inflation itself. Material pricing remains elevated across many categories, particularly for electrical components, specialty materials, roofing systems, and mechanical equipment. Even when pricing volatility slows, replacement costs remain far above pre-pandemic levels. That has important insurance implications.

If property values, equipment schedules, or builder risk limits have not been updated to reflect current costs, contractors may unknowingly be underinsured. In a major loss scenario, that gap can become financially significant.

There is also growing concern around project delays tied to supply chain challenges. Longer lead times can extend project timelines, increase exposure periods, and ultimately increase the overall cost of claims.

Labor inflation is creating another layer of pressure. The construction industry continues to face workforce shortages, particularly among skilled trades. As firms compete for experienced workers, wage growth has accelerated. While higher pay can help attract talent, it also impacts claim severity, especially in workers’ compensation.

Medical costs are rising. Lost-time claims are becoming more expensive. Inexperienced workers may require additional training and supervision, which can also influence safety outcomes and insurance performance over time.

At the same time, contractors are managing increased auto liability exposure, rising litigation costs, and larger jury awards across the country. Even relatively small incidents now carry the potential for substantial financial impact.

Active claim management throughout these types of situations is critical. Timelines have slowed everywhere, including the judicial system. Legal costs have increased, which in turn inflates claim costs. Claim costs can also have a direct impact on insurance pricing. Workers’ Compensation EMR’s and Auto Experience Rating can be volatile, actively managing those claims can directly impact these variables, in turn, affecting the insurance pricing. This leads directly into proactive risk management.

For contractors, this environment reinforces the importance of proactive risk management rather than viewing insurance strictly as an annual transaction. Carriers are placing greater emphasis on safety culture, fleet management, subcontractor oversight, cybersecurity practices, and operational controls when evaluating accounts. Firms that can demonstrate strong internal processes are often in a better position to manage long-term insurance costs and secure favorable terms.

This is especially important as projects grow more complex and technology becomes more integrated into day-to-day operations. Drones, connected jobsites, digital project management systems, and electronic payments create efficiencies, but they also introduce new forms of risk that many firms are still evaluating.

While there are encouraging signs in portions of the insurance marketplace, contractors should not mistake a softening market for a reduction in exposure. The hidden costs impacting construction risk today extend far beyond premium percentages alone.

The firms best positioned for long-term success will be those that regularly reassess valuations, strengthen operational controls, invest in workforce development, and work closely with trusted advisors to identify emerging risks before they become costly problems.

In summation, insurance is becoming more complex by the day. But a good partner can walk you through the complexities of the industry and develop a plan that works for you as the contractor. Being active in your risk management program is now critical, and now is the time to do it, if not yesterday. Now is the time to reassess your risk strategy—before these hidden costs show up in your next claim or renewal.

Brett Findlay is a Senior Vice President and Construction Practice Leader at OneGroup, a subsidiary of Community Financial System Inc. OneGroup.com

2026 Mid-Year Report to the Upstate New York Construction Industry and Members of the Syracuse Builders Exchange

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Earl R. Hall, Executive Director, Syracuse Builders Exchange

Reflecting on mid-year data, including membership utilization, I am pleased to report that the Syracuse Builders Exchange continues to demonstrate exceptional strength, stability, and growth. The Association remains well-positioned to serve the regional construction industry today while preparing for future opportunities.

The Syracuse Builders Exchange is proud to be the largest construction industry association in New York State with approximately 1,100 member firms. For more than 150 years, our mission has remained unchanged—to provide the resources, services, advocacy, and professional relationships that help our members succeed in an increasingly competitive marketplace.

Membership continues to grow as more construction firms recognize the value of belonging to an organization that delivers measurable benefits. New members are joining because they see an association that provides a wide variety of services, is financially sound, professionally managed, and committed to helping their businesses succeed. Our continued membership growth reflects the confidence the construction industry has placed in the Syracuse Builders Exchange and the value our programs provide every day.

The Builders Exchange is financially sound, generating strong operating revenues, maintaining adequate financial reserves, and operating with no debt – all while maintaining the fiscal goals and objectives of a 501c6 not-for-profit trade Association. This conservative financial stewardship ensures that the Syracuse Builders Exchange remains independent, sustainable, and capable of investing in new programs and member services without compromising our financial security.

The Syracuse Builders Exchange Electronic Plan Room is one of the Association’s most valuable member resources, providing contractors, subcontractors, suppliers, and construction professionals with immediate access to current bidding opportunities throughout the region. Members can easily view project plans, specifications, addenda, and other bidding documents from any location, allowing them to identify and pursue new business opportunities efficiently.

In addition to convenient access to bid information, the Electronic Plan Room offers powerful estimating and digital takeoff tools that help members improve the accuracy and speed of project estimates. These features enable users to measure quantities directly from electronic drawings, streamline estimating workflows, reduce costs, and enhance competitiveness. By combining comprehensive project information with advanced digital tools, the Electronic Plan Room helps members save time, increase productivity, and position their businesses for continued success in today’s competitive construction marketplace.

One of the Builders Exchange’s highest priorities continues to focus on education and safety training. Over the past year, we have expanded our schedule of education, professional development, and safety training classes, providing members with practical knowledge that enhances productivity, strengthens knowledge of regulatory compliance, and improves workplace safety. These programs have become one of the defining benefits of membership and reflect our commitment to helping member firms remain competitive and safe.

Equally important are the opportunities the Builders Exchange provides for members to build lasting and meaningful professional relationships. Throughout the year, the Association has hosted a wide variety of social gatherings, networking events, awards programs, and industry meetings that strengthen connections among contractors, subcontractors, suppliers, design professionals, and project owners. These events foster collaboration, encourage new business opportunities, and reinforce the sense of community that has always distinguished the Syracuse Builders Exchange.

Looking ahead, the Builders Exchange remains focused on innovation and continuous improvement. We will continue investing in education, safety training, technology, networking opportunities, and member services while maintaining the financial discipline that has made the Association one of the strongest and most respected trade organizations in the State.

None of these accomplishments would be possible without the support and engagement of our members, volunteer leadership from the Board of Directors, committee members, and dedicated staff. The Builders Exchange’s membership participation, ideas, and commitment have helped build an organization that serves as the voice of the construction industry throughout Upstate New York.

The future of the Syracuse Builders Exchange is bright. With consistent revenues, no debt, growing membership, expanding educational and safety programs, vibrant networking opportunities, and adequate financial reserves, our association is well prepared to meet the challenges and opportunities long into the future.

Anthony DeMarco & Sons, LLC: Generations of Service, Growth, and Reliability

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From commercial landscaping to dumpster services, a Central New York family business thrives on customer service, innovation, and community commitment.

By: Kimberly Graf

Rooted in Family, Growing with Purpose

Founded in 1972 by Anthony and Ruth DeMarco as a modest vegetable, farm, and greenhouse operation. what is now known as Anthony DeMarco & Sons, LLC began with a simple premise: grow quality products, treat customers fairly, and work hard every day. More than 50 years later, that same philosophy continues to guide a business that has become a fixture in Elbridge, NY, and a trusted partner to commercial and residential clients throughout Central New York and much of the Northeast.

Still rooted in Elbridge, roughly 15 miles west of Syracuse, the company now occupies significantly more land than it did in its earliest days. What was once a small, seasonal operation has grown into a year-round, multi-division enterprise led by three generations of the DeMarco family. Leadership includes founder Anthony and Ruth, who now live part-time in Florida, alongside his son Anthony and Anthony’s two sons, Anthony P and Mario, ensuring continuity, shared values, and long-term vision remain at the heart of the company.

Over the decades, Anthony DeMarco & Sons’ strategic approach has evolved alongside customer needs, as well as through opportunities to maximize operational efficiencies. From its agricultural roots, the company expanded thoughtfully, building complementary services that strengthened the overall operation rather than diluting its focus. Today, the business encompasses a garden center, commercial and estate landscaping, mulch and soil production, a sod farm in Phoenix, NY, dumpster and waste management services, snow removal, and large tree transplanting, each division reinforcing the others.

Despite this growth, the company remains grounded in what made it successful from the start: quality workmanship, competitive pricing, and an unwavering commitment to customer service. Whether serving a homeowner at the garden center or coordinating a complex commercial installation, the DeMarco team approaches every project with the same attention to detail and accountability.

A Multi-Division Business Built to Last

Anthony DeMarco & Sons has always adapted to changing needs, not by chasing trends, but by listening closely to the market and responding with practical, service-driven solutions. That adaptability has allowed the company to expand its offerings while maintaining strict quality control across all operations.

Today, the company supports both residential and commercial clients across Central New York, offering services that range from plant sales and landscape materials to large-scale commercial installations and logistics support. The ability to provide so many services under one umbrella has become a defining strength, delivering efficiency, consistency, and reliability across projects of all sizes.

At the core of the operation is a family-led management style that prioritizes long-term relationships with both customers and employees. That philosophy has helped the company maintain a stable, experienced workforce and a reputation among customers for dependability that spans decades.

Garden Center: Locally Grown, Professionally Supported

One of the company’s foundational divisions remains its garden center, a direct extension of its agricultural roots. Focused on top-quality products that are locally grown and produced, the garden center serves as both a retail destination and a critical support system for the company’s landscaping operations.

By growing much of its own plant material, Anthony DeMarco & Sons maintains control over quality from start to finish. Customers benefit from healthy, regionally appropriate plants suited to Central New York’s climate and growing conditions. From trees and shrubs to seasonal plantings and landscape materials, the garden center reflects decades of hands-on horticultural experience.

Delivery services further enhance convenience for customers, allowing both residential and commercial clients to access professional-grade materials without logistical challenges. This combination of local production, product knowledge, and customer support has made the garden center a trusted resource for homeowners, contractors, and developers alike.

Landscaping Services: From Residential Roots to Commercial Scale

While the company’s landscaping expertise dates back decades, a significant milestone came in 2000, when Anthony DeMarco & Sons formally expanded into commercial landscaping installations. Building on its greenhouse and nursery background, the company began taking on larger, more complex projects, laying the foundation for what has become its primary business focus today.

The landscaping division now handles a wide range of work, including estate-scale installations, ongoing landscape management, commercial snow removal, and large tree transplanting. While these services contribute to the company’s breadth, commercial installations remain the centerpiece of its growth and reputation.

That expansion was driven by opportunity, capability, and demand. With in-house plant production, specialized equipment, and a growing team of skilled professionals, Anthony DeMarco & Sons was well positioned to serve commercial developers seeking reliable partners who could deliver consistent results.

Commercial Landscaping Expertise

Today, the company’s commercial landscaping division completes approximately 100 installations per year, generating around $5 million in annual revenue. Projects extend across a 300-mile radius from Syracuse, with additional work performed in all boarding states. Reflecting the company’s ability to manage logistics and execution beyond its home market.

Anthony DeMarco & Sons works with long-standing commercial developers from the Syracuse area and all over the country. Providing landscaping installations for nationally recognized brands and regional businesses alike. Customers include Amazon, Byrne Dairy, Dollar General, Advance Auto Parts, O’Reilly Auto Parts, Walgreens, WellNow Urgent Care and many others.

Several key competitive advantages set the company apart:

  • Full control over start-to-finish installations with in-house plant production.
  • Heavy machinery capable of moving large estate-scale trees.
  • Flexibility to manage both small and large commercial projects.
  • In house plant, sod, soils and mulch production.

Dumpster & Waste Management: Growth from Necessity

The company’s dumpster and waste management division originated in 2009 not as a business plan, but as a practical solution to internal needs moving mulch, soil, and raw materials. Over time, this service revealed broader demand, leading to a full-scale operation serving commercial contractors and residential clients alike.

Today, the division operates 400 dumpsters and more than 12 trucks, covering a 50-mile radius of Syracuse. While most business is commercial (70–80%), a portion of residential clients is maintained as well.

The company offers roll-off dumpsters in 15-, 30-, and 40-yard sizes, along with same-day or next-day service. In 2026, front-load trash service was added to meet evolving client needs. Flexibility and responsiveness remain central to the division’s success.

Commitment to Employees and Community

Across all divisions, Anthony DeMarco & Sons emphasizes loyalty to its employees, customers, and community. The company maintains a year-round team of 35 employees, avoiding layoffs and fostering stability within the workforce.

“Nobody gets laid off. We take care of our people because they take care of our business,” Anthony says. This commitment has helped retain experienced staff who understand the company’s standards, values, and expectations, contributing directly to consistency and customer satisfaction.

Environmental responsibility is also a priority. Sustainability initiatives include mulch and soil production from wood waste and composting, reducing waste while creating usable products for landscaping projects. These efforts align with the company’s agricultural roots and long-term operational approach.

Innovation Rooted in Experience

While innovation drives the company forward, all new initiatives are grounded in experience and operational practicality. Strategic decisions, whether expanding waste services, producing plants in-house, or investing in machinery, prioritize quality, reliability, and efficiency.

From moving estate-scale trees to delivering dumpsters on tight timelines, Anthony DeMarco & Sons blends innovation with family-driven values. Each service builds on existing strengths, reinforcing a business model that has thrived across decades of economic cycles and evolving client needs.

After more than five decades, Anthony DeMarco & Sons remains a true family business, guided by shared values, long-term thinking, and a commitment to doing the job right. With the next generation at the leadership helm, the company is positioned to continue serving Central New York and beyond with the reliability and mission-driven focus that has defined it from the start.

To learn more about Anthony DeMarco & Sons, LLC and its full range of services, visit demarcoandsons.com, call 315.675.4400, or email sales@demarcoandsons.com.

Workers’ Compensation Loss Costs Decrease Again

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Steven Bell, Vice President, Lovell Safety Management Co., LLC

At a time when most commercial insurance lines seem locked into a cycle of increases, workers’ compensation in New York State continues to do the opposite. The latest filing from the New York Compensation Insurance Rating Board (NYCIRB) resulted in a 13.2% statewide loss cost decrease effective October 1, 2025.  The most recent filing is not an anomaly but rather the continuation of a long-term trend that has now been in place for nearly a decade. The filing reinforces a simple but important point: workers’ compensation has become one of the most stable, predictable, and consistently improving line of insurance in New York.     

 That was not always the case.   Prior to 2008, workers’ compensation pricing in New York was based on manual rates, not loss costs and because of the rate making structure workers’ compensation was viewed as one of the more volatile performing lines on an insurance program.  That instability ultimately led to systemic change.

 Reform and the Shift to Loss Costs

The 2007 Reform Act marked a turning point for New York’s workers’ compensation system. While the immediate rate reductions were meaningful, the more important impact was structural. The reform was historically significant in establishing “caps” or duration limits on permanent partial disability benefits, which previously were paid for a lifetime, while simultaneously increasing the maximum weekly benefit rates.   

 Shortly thereafter, New York adopted a loss cost rating system effective October 1, 2008. Under this approach, NYCIRB began publishing loss costs by classification, while insurance carriers applied their own loss cost multipliers to account for expenses and profit.  This change brought New York in line with most other states and introduced additional transparency and improved competition in the marketplace. It also separated statewide actuarial indications from individual carrier expense structures, allowing pricing to better reflect actual loss experience.  The years after the adoption of loss costs were still influenced by legacy claims and prior medical trends. Between 2009 and 2016, loss cost filings resulted in increases or no change as the system adjusted to post-reform realities. 

 Since 2017, loss costs in New York have declined in every filing year.  Over this period, there were cumulative reductions of – 67.6%.  The 13.2% decrease effective October 1, 2025, is one of the largest in recent history, but it follows a series of meaningful reductions year after year. What makes this trend notable is not just the size of the decreases, but their consistency when compared to other insurance lines.  While auto liability, general liability, property, and umbrella insurance have all experienced upward pricing pressure, workers’ compensation has continued to move steadily downward.

 Why Workers’ Compensation Is Different

The reasons for this divergence are structural. First, claim frequency has fallen. Safer workplaces, improved training, automation, and employer investment in safety programs have reduced the number of injuries entering the system.  Second, claim severity has remained relatively controlled. Workers’ compensation benefits from fee schedules, treatment guidelines, and a regulated medical environment that is not as structured in liability-based lines.  Third, wage growth has outpaced loss growth. Because workers’ compensation premiums are based on payroll, rising wages increase the premium base. When losses remain stable or decline, loss costs must fall to maintain actuarial balance.

 Finally, carrier results have remained profitable. Accident-year combined ratios consistently remain below 100%, even before investment income is considered. This profitability supports rate adequacy without the need for increases.

 State assessments are another often-overlooked part of the equation. In 2011, the assessment level exceeded 20% of premium and has decreased every year since then except for 2018. Today, the assessment stands at 7.0% as of January 1, 2026.  These steady decreases reflect the continued financial strengthening of the system and directly reduce employer costs when combined with declining loss costs. 

 Why Individual Premiums Don’t Always Decline

Despite favorable statewide trends, not every employer sees a reduction in premium. Payroll growth, experience modification changes, carrier underwriting decisions, and program structure all affect final cost.

 This makes regular program reviews critical, and one of the most effective ways for employers to fully benefit from the declining loss cost trend is participation in industry-specific safety groups. These programs align employers with similar risks, emphasize loss prevention, and return underwriting profits to participants through dividends.

 A Success Story

At Lovell Safety Management, we have been specializing in safety group programs since 1936.  Through our 13 industry-specific safety groups, Lovell has helped employers translate system-wide improvements into tangible financial results, returning more than $1.28 billion in dividends to employers in our programs. 

The -13.2% loss cost decrease effective October 1st, 2025, is not an anomaly. It is the continuation of a long-running transformation that has reshaped workers’ compensation in New York. In an insurance environment defined by rising costs, workers’ compensation stands apart as a system that has stabilized, delivering consistent loss cost decreases for nearly a decade. 

 That is something few insurance lines can claim.

If you have any questions about how Workers’ Compensation costs may impact your business, please reach out to a Lovell representative at 1-800-556-8355.

Protecting Corporate Ownership

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Richard D. Boyle, Esq. of Sheats & Bailey, PLLC

Have you ever thought about what your business partner might do with his or her ownership? A Buy/Sell Agreement helps to alleviate those concerns. A Buy/Sell Agreement is a binding agreement specifying how a shareholder’s shares in a corporation shall be disposed of upon a “triggering event”. The “triggering event” usually being a shareholder’s:

• Death
• Disability
• The desire to transfer ownership aka “walkaway”
• Termination of employment “for cause” and/or
• Retirement.

Having a Buy/Sell Agreement in place helps to smooth the transition of ownership upon predefined triggering event(s). For example, if a shareholder passes away, the remaining shareholder(s) will know who the successor shareholder(s) will be (if any) and the deceased shareholder’s estate will have comfort in knowing who will purchase the deceased shareholder’s shares. Likewise, a Buy/Sell Agreement provides shareholders with a level of comfort in knowing that if a shareholder wants to transfer his or her shares to an outside party, he or she first must at the very least get approval from the remaining shareholder(s) and/or give a first option to the remaining shareholders to purchase.

So how does a Buy / Sell Agreement work? As stated above, the Buy/Sell Agreement sets forth a triggering event upon which a shareholder’s shares are transitioned to new ownership.

For example, if a shareholder passes away, the Buy/Sell Agreement will set forth who must purchase the deceased shareholder’s shares from his or her estate. The purchase price for the deceased shareholder’s shares is a predetermined price as set forth in the Buy/Sell Agreement. To fund the purchase price, there often is life insurance in place on the lives of each shareholder, which is paid for by the corporation; the proceeds of which are used to purchase the deceased shareholder’s shares. This is similar to an instance whereby a shareholder is determined to be disabled and unable to work for the corporation anymore; the remaining shareholders can purchase the disabled shareholder’s shares using disability insurance. Not only is this a great vehicle to provide a shareholder’s loved ones with cash, but also provides a mechanism for the corporation to have succession.

Similarly, in an instance where a shareholder wishes to retire or sell his or her shares to an outside third party, the Buy/Sell Agreement can set forth a restriction so that the remaining shareholder(s) are not in business with an outside party. For example, if a shareholder no longer wanted to be part of the business and wanted to sell his or her shares to a third party, the Buy/Sell Agreement could say that he or she first must offer the shares to the remaining shareholder(s) and/or to the corporation for a predetermined set price payable over a certain period of time.

In addition, Buy/Sell Agreements are great vehicles to put in place when transitioning ownership in a corporation to key employees. Many times, when shares are gifted to the younger generation, the gifting shareholder will want the younger generation to work many years to show his or her dedication to the corporation before he or she is fully vested in the gifted shares. In such a case, the Buy/Sell Agreement can set forth a vesting schedule whereby a percentage of the gifted shares become vested each year.

When drafting a Buy/Sell Agreement, there are many factors to consider. In my experience, conversations take time and evolve. Therefore, it is important to start having those crucial conversations with shareholders and successors before it’s too late.

For more information on Buy/Sell Agreements and all other corporate and litigation needs, please contact Sheats & Bailey, PLLC, a law firm dedicated to servicing the construction industry.

 

Construction Insurance Trends and the Softening Market: What Construction Leaders Need to Know for 2026

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By: Brett Findlay, Senior Vice President, Business Risk Specialist, OneGroup

The construction industry has never been a stranger to volatility, especially in recent years. From supply chain disruptions to labor shortages, expecting the unexpected has become commonplace. But as we move into 2026, a shift is underway in the insurance marketplace—a shift that could provide both relief and new challenges: the softening of the insurance market. Having a handle on how you can manage your insurance program for the impacts of a softening market is important. The following highlights trend impacts for commercial general liability, workers’ compensation, and commercial umbrella coverage. All of which are, essential for construction leaders looking to protect their assets, grow their margins, and manage risk.

The Softening Market: A Welcome Return for Construction

After several years of navigating a hard market in New York—years marked by rising premiums, reduced capacity, and stricter underwriting—2025 showed signs of stabilization and even softening across key lines of insurance. This is a promising development.

Increased competition among a growing number of carriers, large capital inflows, and ever-evolving risk management strategies have driven broader coverage options and, in many cases, stabilizing premium and in some cases even premium reductions. There are carriers who’ve recently entered the New York construction insurance marketplace. This is the first time in years that we’ve seen standard market, financially sound carriers willing to come into New York State for the first time and provide quality options for contractors. We’ve reached a point where they believe premiums are sufficient enough that they feel comfortable funding for losses and still be profitable.

Yet, as always, the construction sector does remain a complex environment. Individual local market segments, project types (framed construction), and risk profiles will drive outcomes. Not all segments are realizing relief at the same rate, if at all.

Commercial General Liability: Moderating Rates, Persistent Challenges

Commercial general liability (CGL) remains a critical piece of risk management for contractors, especially in NYS. In 2025, rate increases nationally for CGL have moderated, with most policyholders seeing jumps in the 1% to 9% range. This was an improvement over the double-digit increases in prior years. Certain classes of business still face pressure due to outsized jury verdicts and social inflation, but the overall slant is positive.

Key Trends:

• Litigation funding: The rise of third-party litigation funding is prolonging and increasing the cost of claims, driving up settlements and verdicts.
• Risk management: Insurers are rewarding strong safety programs and loss control measures. Clean, well-managed accounts benefit from competitive pricing and ample capacity.
• Contractual risk transfer: Strong contractual risk transfer and safety processes and procedures will continue to lend themselves to stronger and more consistent market results.

Action Steps for Contractors:

• Continue to start insurance renewal discussions early and provide accurate, comprehensive data to carriers. With new carriers entering the fold, they’ll need time to underwrite thoroughly. The better they know your business, the better program they’re willing to provide.

• Invest in safety and risk management programs to demonstrate insurability. Your agent should be able to assist here at a deep level.

• Consider alternative program structures, such as captives, higher deductibles, or SIRs, to manage costs.

Workers’ Compensation: Rate Relief and Safety Gains

Workers’ Compensation has been one of the few lines of coverage showing consistent rate decreases. In fact, there have been aggregate loss cost decreases across all classifications for ten consecutive years in NYS. That trend has continued and accelerated; for example, 2024 saw a 9% overall loss cost reduction, with a 13.2% decrease filed and approved in 2025. This is an indication that carriers are profitable on this line of business. Nationally, claims frequency in construction has declined by 4.1% annually from 2015 to 2023, outpacing other industries and surely aiding in the continued market softening.

Key Trends:

• Declining claims frequency: Improved safety practices, better training, and automation have proven impacts on driving down claims.

• Labor market dynamics: Increased wages and employment have led to higher premiums, helping loss ratios. Even with the increases, the market remains profitable, with a combined ratio of 86% in 2024.

• Regulatory changes: Adjustments to experience rating formulas and premium adjustment programs (PAP) credits are impacting individual policy costs. You should have a good handle on this as well as your agent’s handling of these items for you.

Action Steps for Contractors:

• Forecast future costs and develop renewal strategies well in advance.
• Leverage PAP credits, payroll limitation, and stay informed about regulatory changes.
• Maintain a strong safety culture to continue driving down claims frequency and actively manage the claims that do occur.
Commercial Umbrella: Capacity Constraints and Layered Solutions
Umbrella and excess liability coverage have faced significant capacity challenges in 2025. In NYS specifically, increased claims severity and nuclear verdicts have led carriers to reduce limits, raise attachment points for the excess umbrella, and in certain circumstances, require more layered programs to secure adequate coverage. It’s exactly why you need to be focused on managing your program’s risk aggressively. Excess umbrella has shown some softening, but that’s for the strong performers. You need to be a strong performer and be able to showcase it to aggressively advocate for yourself.

Key Trends:

• Stricter underwriting: Carriers are being more selective with whom they’ll put up higher primary umbrella limits for, especially in high-hazard trades. Contractors may need to piece together coverage from multiple insurers to provide the limits necessary to meet some contractual requirements.
• Premium increases: Rate hikes are steeper for businesses with poor loss histories or high exposure. Driving down general liability costs can directly impact the premiums necessary for your primary $5M umbrella coverage.
• Alternative risk strategies: Captives, group programs, and higher self-insured retentions are gaining popularity on a larger scale to help contractors offset costs.

Action Steps for Contractors:

• Prepare to negotiate higher deductibles and layered coverage structures.
• Explore alternative risk transfer options, such as captives or parametric solutions.
• Strengthen risk management protocols to secure better terms from carriers.
Conclusion: Proactive Strategies for a Dynamic Market

The softening insurance market offers opportunities for construction companies to negotiate stronger terms and conditions, including better coverage and cost structures. However, the persistent challenges that have plagued NYS for decades are still present—litigation, capacity constraints, and evolving risks. Advocating for yourself requires a proactive approach to these challenges. Start the renewal process early, invest in safety and risk management, and explore creative program structures. Being proactive will position contractors for success in 2026 and beyond.
For more information on Construction Insurance Trends and the Softening Market please contact Brett Findlay, Senior Vice President Business Risk Specialist at (315) 280-6376 or BFindlay@OneGroup.com

How to Present Your Company Effectively in a Trade (Custom) Magazine

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By K.C. Roberts

In an increasingly crowded marketplace, visibility alone is no longer enough. How your company is presented—particularly in a trusted trade (custom) magazine—can significantly influence perception, credibility, and ultimately, buying decisions. Trade (custom) publications offer a unique opportunity to tell your story in a context that decision-makers already value. To maximize that opportunity, your presentation must be strategic, authentic, and audience focused.

Understand the Magazine’s Purpose and Audience

The first step in effective presentation is alignment. Trade (custom) magazines are designed to serve a specific industry or professional audience, often combining editorial insight with sponsored or branded content. Before crafting your message, understand who the readers are, what challenges they face, and what type of information they expect. A message that resonates with hospital administrators will differ greatly from one aimed at manufacturing executives or professional service providers. Tailoring your content to the readership signals relevance and respect for their time.

Position Your Company as a Solution, Not a Sales Pitch

One of the most common mistakes companies make in trade publications is treating the article as an advertisement. Readers of trade magazines are seeking insight, not overt promotion. Effective content positions your company as a knowledgeable partner that understands industry pain points and offers practical solutions. Discuss trends, challenges, or innovations, and demonstrate how your expertise addresses them—without excessive self-promotion. Subtlety builds credibility; credibility builds trust.

Tell a Compelling Story

Storytelling is a powerful differentiator. Rather than listing services or capabilities, frame your company’s message around real-world impact. Case studies, client success stories, or examples of problem-solving help bring your value proposition to life. When possible, quantify results to reinforce authenticity. A well-told story not only engages the reader but also makes your company memorable long after the magazine is set aside.

Highlight Leadership and Expertise

Trade (custom) magazines are an ideal platform to showcase thought leadership. Featuring insights from company executives, physicians, engineers, or subject-matter experts humanizes your brand and reinforces authority. By sharing informed perspectives on industry developments or best practices, your company becomes part of the broader professional conversation rather than an outsider attempting to interrupt it.

Maintain Editorial Quality and Professional Tone

Presentation extends beyond what you say to how you say it. Content must be well-written, concise, and professionally edited. Avoid jargon overload, unsupported claims, or exaggerated language. Strong headlines, clear subheadings, and logical structure improve readability and encourage engagement. Visual elements—such as professional photography, charts, or infographics—should support the narrative rather than distract from it.

Integrate Brand Identity Consistently

While subtlety is important, brand consistency still matters. Ensure that logos, color palettes, messaging, and tone align with your broader marketing efforts. Readers should easily recognize your company’s identity and values without feeling overwhelmed. A consistent brand presence reinforces recognition and trust across multiple touchpoints.

Measure Impact and Refine Your Approach

Finally, treat your presence in a trade (custom) magazine as part of an ongoing strategy. Track engagement, inquiries, and downstream opportunities generated by the publication. Feedback from readers, sales teams, or partners can provide valuable insight into what resonates. Use that data to refine future content and strengthen your positioning over time.

When executed thoughtfully, a trade (custom) magazine is more than a placement—it is a platform for credibility, influence, and long-term brand building. By focusing on relevance, storytelling, and value, your company can present itself not just as a participant in the industry, but as a trusted leader within it.

AI Generated, Edited by K.C. Roberts

How the One Big Beautiful Bill May Impact Financial Statements for Contractors

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Kaitlyn H. Axenfeld, CPA/CFF, CFE, Dannible & McKee, LLP

The passage of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, marked a significant shift in the financial and regulatory landscape for contractors across the United States. With sweeping tax reforms and substantial federal spending initiatives, the bill is poised to reshape how contractors manage their accounting, tax planning and financial reporting — particularly for C-corporation contractors.

Deferred Tax Recalculations

In accordance with ASC 740, any changes in tax law must be reflected in the financial statements during the period in which the law is enacted — in this case, July 4, 2025. For contractors, deferred tax assets and liabilities must be remeasured using the new tax rates and rules as of Q3 2025, not at the start or end of the year. These adjustments will be included in the income tax expense section of the financial statements, potentially causing noticeable fluctuations in reported earnings.

Accounting Method Flexibility

One of the most notable changes introduced by the Act is the expanded tax exemption from the percentage-of-completion method (PCM) for certain residential construction contracts. Previously, many contractors were required to recognize revenue as work progressed, which often resulted in higher taxable income during the early stages of a project. Under the new law, contractors involved in multifamily housing, senior living, student housing and mixed-use developments may now elect to use the completed contract method (CCM). This shift allows contractors to defer revenue and tax liability until a project is finished, improving cash flow and reducing interim tax burdens. As a result, financial statements for C-corporations may reflect lower current income tax owed during the early construction phases, which would have the opposite effect on deferred tax liabilities and deferred tax expense.

Accelerated Depreciation and Expensing

The bill also reinstates 100% bonus depreciation and expands Section 179 expensing limits. This means contractors can now immediately deduct the full cost of qualifying equipment, vehicles and property improvements in the year of purchase. While this provides a significant tax advantage, it also introduces temporary timing differences between book and tax depreciation. These differences must be accounted for under ASC 740, potentially affecting deferred tax assets and liabilities on the balance sheet.

Interest Expense Deductibility

Another favorable change for contractors is the revision of the interest expense limitation rules under Section 163(j). The bill reverts the limitation calculation to an EBITDA-based formula rather than an EBIT-based one. This adjustment allows contractors, especially those financing large-scale projects, to deduct a greater portion of their interest expenses. The increased deductibility can lower the effective tax rate and may require remeasurement of deferred tax balances, further influencing the income tax line on financial statements.

Strategic Planning and Financial Disclosures

Beyond tax reform, the bill allocates over $190 billion to the Department of Homeland Security and other federal agencies, with a strong focus on border infrastructure, surveillance and AI systems, and modernization of maritime and aviation facilities. This influx of federal funding is expected to generate a surge in contracting opportunities, particularly for firms in construction, engineering, and technology integration in those sectors. As contractors secure new projects, they may need to revise revenue forecasts, expand operational capacity and update disclosures related to backlog and contract assets and liabilities.

Given the potential significance of changes introduced by OBBBA, contractors are encouraged to reassess their historical accounting method elections and tax positions. Financial statement disclosures should be updated to reflect the impact of the new law, and companies should consider the long-term implications of permanent tax changes on debt covenants, capital investment strategies and project financing.

The One Big Beautiful Bill represents a transformative moment for the contracting industry. By altering how revenue is recognized, how assets are depreciated and how taxes are calculated, the legislation has the potential to impact financial statement presentation and the bottom line. Contractors who adapt quickly and strategically will be best positioned to capitalize on opportunities and mitigate the risks posed by the OBBBA.

Kaitlyn H. Axenfeld, CPA/CFF, CFE, is an audit partner at Dannible & McKee, LLP, a certified public accounting firm with offices in Syracuse, Auburn, Binghamton and Schenectady, NY, as well as Tampa, FL. With over 12 years of experience, Kaitlyn provides audit, review, compilation and consulting services to a wide range of clients, with a focus on the construction industry. For more information on this topic, contact Kaitlyn at kaxenfeld@dmcpas.com or (315) 472-9127. Visit our website at DMCPAS.com to learn more.

Why Writing a Column on Your Expertise Enhances Your Credibility

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By K.C. Roberts

In an increasingly crowded and competitive marketplace, credibility is one of the most valuable assets a professional or organization can possess. Buyers, partners, and stakeholders want to work with people they trust—those who demonstrate knowledge, consistency, and authority in their field. One of the most effective yet underutilized ways to build that trust is by writing a regular column focused on your area of expertise.
A well-crafted column does more than share information. It positions you as a thought leader, reinforces your professional reputation, and creates sustained visibility with your target audience. Over time, it becomes a powerful credibility-building tool that supports both personal and organizational goals.

Demonstrating Expertise Through Consistency

Anyone can claim to be an expert. Writing a column proves it. When you consistently explain complex topics clearly, offer practical insights, and address real-world challenges, readers begin to associate your name with competence and reliability. A recurring column allows you to showcase depth of knowledge over time, not just in a single article or presentation.

Consistency is critical. Publishing regularly—monthly, quarterly, or even weekly—signals commitment to your discipline and your audience. It shows that you are actively engaged in your field, staying informed, and thinking critically about trends and developments. That ongoing presence reinforces the perception that you are not only knowledgeable, but current and relevant.

Building Trust Through Education, Not Promotion

Credibility grows when your content is educational rather than self-promotional. A column that focuses on helping readers understand issues, make better decisions, or avoid common pitfalls positions you as a trusted advisor instead of a salesperson. Readers are far more likely to respect—and remember—professionals who share value freely.

Over time, this approach creates a strong trust foundation. When readers later need products, services, or guidance related to your expertise, they naturally gravitate toward the person who has been consistently helping them think smarter and act more confidently.

Humanizing Your Brand and Perspective

Writing a column also allows you to communicate your perspective, values, and approach in a way that corporate messaging often cannot. Your voice, examples, and point of view humanize your expertise. Readers gain insight not just into what you know, but how you think.

This personal dimension is particularly important in professional services and B2B environments, where decisions are often influenced by relationships and perceived alignment. A column helps readers feel they “know” you, even before a direct interaction occurs, which lowers barriers to engagement and collaboration.

Reinforcing Authority in Your Market

A published column—especially in a respected trade publication, business journal, or industry platform—provides third-party validation. Being given space to share your insights signals that an editor or publisher considers your perspective worth hearing. That external endorsement enhances your authority in ways self-published marketing materials cannot.

This authority often extends beyond the page. Columnists are more likely to be invited to speak at events, participate in panels, contribute to broader discussions, or serve as expert sources for media. Each of these opportunities further compounds credibility and visibility.

Creating Long-Term Value from a Single Effort

Unlike transient marketing tactics, a column creates lasting assets. Articles can be shared with prospects, included in proposals, repurposed for digital content, or referenced in conversations. Over time, your body of work becomes a portfolio of expertise that speaks on your behalf—even when you are not in the room.

Importantly, credibility built through writing is cumulative. Each column strengthens the impact of the last, creating a steady upward trajectory of trust and recognition.

Conclusion

Writing a column on your area of expertise is not simply a content exercise; it is a strategic investment in credibility. By consistently educating, informing, and engaging your audience, you establish authority, build trust, and differentiate yourself in a meaningful way. In a marketplace where credibility drives decisions, a thoughtful, well-executed column can become one of your most powerful professional tools.

AI Generated, Edited by K.C. Roberts

Scaffold Law Reform Efforts

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For the past 35 years, construction industry Association executives, myself included, and others have attempted to work with politicians in Albany to reform the antiquated New York State “Scaffold Law” (Labor Law 240), which imposes an absolute liability standard on gravity related injuries to workers – even when the worker is at fault.  Generally, these cases are settled out of court between the plaintiff’s attorney and the very few insurance carriers which choose to take on this extraordinary risk exposure in New York.  This unique and strict absolute liability standard does not exist in any of the other 49 states, where such gravity related injury claims and lawsuits are subject to a comparative negligence standard.  The construction industry’s proposed reform does not take away one’s ability to sue if injured, rather the industry has for decades asked Albany politicians to amend the state’s outdated Labor Law, which was enacted in 1885, to eliminate the absolute liability standard and replace it with a comparative negligence standard.

Earlier this year, Unites States Congressman John Faso (Southern Tier and Hudson Valley) and Congressman Nick Langworthy (Western NY) introduced legislation attempting to remedy the “Scaffold Law” on any project (including those in the state of New York) which receives federal funding via H.R. 3548 (Langworthy), legislation which would preempt the NYS “Scaffold Law” on federally funded projects.

The bill would require a contributory negligence standard to be used to assess fault for injury accidents occurring on federally funded or subsidized projects. All 49 other states use contributory negligence as the legal standard; only New York state utilizes strict or absolute liability on property owners and contractors.

New York’s “Scaffold Law” does not improve worker safety. All federal data prove that rates of fatality and injury on construction sites in New York are no better, and often worse, than in other states.  Additionally, many insurance carriers have chosen not to underwrite general liability insurance in New York state for contractors due to Labor Law 240, and the associated high-risk exposure.

The congressional bill would include all federal grants, tax credits, and subsidies. This preemption would be particularly beneficial in reducing insurance and other costs for transportation infrastructure, affordable housing, technology projects, and environmental improvement projects, while opening up the insurance market with more insurance companies reentering the New York construction market.

It is estimated that Labor Law 240 “Scaffold Law”, dating from 1885, increases costs of all building projects in the state by a minimum of between 5-10%. Federal preemption would finally force Albany politicians to change the law for all other projects such as hospitals, schools, municipalities, roads, bridges, and all other private and public construction. Without federal action, nothing will happen in Albany to initiate reform of this expensive, unique, and antiquated law.

Enactment of H.R. 3548 would help lower building construction costs in New York state and help make New York more affordable.  Many New York state construction industry Associations, and others engaged in the industry – including taxpayers, are supporting the inclusion of H.R. 3548 in the base text of the pending Surface Transportation Bill in the United States Congress. This bi-partisan legislation is slated for reenactment in the spring of 2026 but is being drafted now.

As New York State’s largest and oldest construction industry Association, representing industrial, commercial, educational and institutional construction contractors, suppliers and manufacturers’ representatives, the Syracuse Builders Exchange is requesting our approximately 1,100 members, and other construction industry stakeholders, to contact your member of congress to request that Chairman Sam Graves (R-MO) and Ranking Member Rick Larsen (D-WA) of the Transportation and Infrastructure Committee include H.R. 3548 in the base text of the Surface Transportation bill.

To lean more about this legislative initiative and how to provide support for “Scaffold Law” reform, please visit www.buildmorenewyork.com .