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Industry Group Gathers in BK to Protest Fraud & Demand Reforms Fake Workers' Comp Claims Cost New Yorkers Millons

Workers Compensation Claim form on files complaint for work injury on files legal

According to a recent press release, at 11 a.m. on Friday, January 17, dozens of residential industry leaders, builders, property owners, affordable housing advocates and policymakers will convene across the street from the Brooklyn federal courthouse at 225 Cadman Plaza E. to speak out against the rampant insurance fraud they say is hurting New York’s building sector.

The group contends that staged accidents on construction sites and fraudulent injury claims cost billions of dollars annually, contribute to unaffordable insurance premiums, delay completion of important development and infrastructure projects, and contribute to higher rents and purchase prices for housing.

According to the 2023 New York City Department of Buildings (DOB) Annual Safety Report, while the city has seen an over 17% increase in ladder falls, stair falls, and tripping incidents on city construction sites, DOB inspectors found no unsafe or illegal conditions on those same job sites—indicating that many of these reported incidents were either staged or fabricated in order to file fraudulent insurance claims. According to the release, the Brooklyn protest, which coincides with the filing of a federal lawsuit aimed at stopping the fraud and a press conference to follow, aim “to expose the fraud and advocate for meaningful reforms – all to protect the construction jobs of thousands of New Yorkers, ensure the future of affordable housing and development across the state, and protect all New York state residents who are paying every day for this fraud out of their own wallets.”

Those expected to be on hand for the gathering include New York State Assembly Chair of the Insurance Committee David Weprin (sponsor of the Staged Accidents Bill), representatives from the New York City Special Riggers Association, the Building Trades Employers’ Association, the Subcontractors Trade Association, The New York State Chapter of the Associated General Contractors of America, tradesman program managers, and more. 

For more information, contact Jacquie Tellez at jtellez@gothamgr.com.  

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