New York State faces staged accidents, insurance costs rise

NEW YORK (PIX11) -- Staged accidents are a growing problem in New York State, according to several Insurance companies and leaders in the construction and building industry.

They say it is costing you more money when it comes to the rent you pay, the cost of insurance on your property, and the cost of building new affordable housing.

“These fraudulent acts keep sidewalk sheds up longer than needed, cost buildings owners and tenants millions of dollars, and put honest workers in harm’s way,” Veronika Sikorski, the president of the New York City Special Riggers Association, said. “We need action now.”

In a historic move, two insurance companies, Tradesman Program Manager and Ionian Insurance, combined forces to bring a federal RICO lawsuit against dozens of local lawyers, doctors, and claimants. 

Tradesman says it has hundreds of fraudulent claims. In contrast, Ionian says it has 59 fraudulent claims which could cost the company more than $88 million, thereby threatening its ability to hire and maintain its workforce composed of everyday New Yorkers.

Attorneys for some of the defendants have said the lawsuit is frivolous, and they are moving to have it dismissed in court. 

“This inaccurate, unfair attack on protectors of working people will be seen for what it is: outrageous lies expressed in legal language. The defense will be successful and this action by unscrupulous insurers and their anti-union allies will fail,” said a Liakas law firm spokesperson.