Elizabeth addresses the crowd outside the federal courthouse in Brooklyn.
At a recent press conference outside the federal courthouse in downtown Brooklyn, BTEA President Elizabeth Crowley joined Assemblyman David Weprin and leading figures in the construction industry to speak out against the rampant insurance fraud harming New York’s construction sector. As Elizabeth pointed out in her remarks, every New Yorker is the victim of this fraud, as contractors have been forced to raise their rates to cover their insurance, which causes building owners to pass along that cost to renters, homeowners, and customers.
Assemblyman Weprin, who is Chair of the Insurance Committee, called for the State Legislature to support the Staged Accidents Bill, which would make the staging of a construction site accident for the purposes of insurance fraud a class E felony.
The press conference followed the filing of a federal lawsuit aimed at stopping the fraud. Two insurance companies, Tradesman Program Managers and Ionian Insurance, brought a lawsuit against a New York City-based personal injury attorney who they believe has been pursuing fraudulent claims. Previously, the two companies filed RICO actions against dozens of local lawyers, doctors, and claimants.
Speaking to the large, enthusiastic crowd outside the courthouse, Elizabeth declared, “Since 2010, the cost to insure a $100 million project has tripled, from 4 percent in 2010 to 8.5 percent in 2020, and now to a staggering 12 percent in 2024. Staged construction accidents are a major factor in the significant rise of insurance costs, hindering the growth of small and Minority and Women-Owned Business Enterprise (MWBE) contractors. If we want New York to be a city of opportunity and prevent well-established businesses from closing, this has to change, and it’s why the BTEA and our 1,200 contractor-members support state legislation to make staging any construction site accident a class E felony.”
The full video of Elizabeth’s remarks can be seen here.
PIX News also did an investigative report digging into this important issue.