8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________

FORM 8-K

Current Report

Dated January 3, 2007
of

AMERICAN SAFETY INSURANCE HOLDINGS,
LTD.

(Exact Name of Registrant as Specified in its Charter)

Bermuda

(State or Other Jurisdiction of Incorporation)
SEC File Number 001-04795

44 Church StreetP.O.
Box HM2064

Hamilton HM HX, Bermuda

(441) 295-5688

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) 12 under the Securities Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) 12 under the Securities Act (17 CFR 240.13e-2(c))

Item 5.02        Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;
                        Compensatory Arrangements of Certain Officers

Employment Agreement of Joseph D. Scollo, Jr.

         The Employment Agreement, dated January 1, 2005, between American Safety Insurance Services, Inc. (the “Company”) and Joseph D. Scollo, Jr., the Executive Vice President and Chief Operating Officer of the Company, as amended by Amendment No. 1, dated January 1, 2006, has been amended effective January 1, 2007, to increase Mr. Scollo’s salary pursuant to the Agreement from $325, 000 to $345,000 per year. Amendment No. 2, dated January 3, 2007, is attached as Exhibit 10.1.

Item 9.01      Financial Statements and Exhibits

10.1 Employment Agreement, Amendment No. 2. between American Safety Insurance Services, Inc. and Joseph D. Scollo, Jr.

                                               SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

                                            AMERICAN SAFETY INSURANCE HOLDINGS, LTD.
                                            Registrant


Date:  January 4, 2007                      By:  /S/ Stephen R. Crim 
                                            Stephen R. Crim
                                            President and Chief Executive Officer

EX-10

AMENDMENT NO.2
TO
EMPLOYMENT AGREEMENT

        THIS AMENDMENT NO. 2, dated January 3, 2007, to that certain Employment Agreement, dated January 1, 2005, by and between American Safety Insurance Services, Inc., a Georgia corporation (the “Company’), and Joseph D. Scollo, Jr., a resident of the State of Georgia (the “Employee”), as amended by Amendment No. 1 thereto dated January 1, 2006 (as so amended, the “Agreement”), is entered into effective as of January 1, 2007.

       WI T N E S S E T H :

        WHEREAS, the Company desires to amend the Agreement to increase the salary payable to the Employee pursuant to the Agreement;

        WHEREAS, the Compensation Committee of the Board of Directors of the Company has approved the salary increase.

        NOW THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Section 3. COMPENSATION is hereby amended by deleting subparagraph (a) thereof in its entirety and substituting in lieu thereof the following new subparagraph (a):

(a) In consideration of the services rendered by the Employee under this Agreement, the Company shall pay the Employee a salary of $270,000 per year during the first twelve (12) months of this Agreement, $325,000 per year during the second twelve (12) months of this Agreement and $345,000 during the third twelve (12) months of this Agreement, which salary shall be paid in equal installments in arrears on a twice-monthly basis.

2. Except as specifically amended hereby, all terms, conditions, rights, duties and obligations of the Agreement shall remain in full force and effect.

_________________

(signatures appear on following page)

IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment No. 2 on January 3, 2007, effective as of January 1, 2007.

         COMPANY:                                  EMPLOYEE:

         AMERICAN SAFETY INSURANCE
         SERVICES, INC.


         By: /s/ Stephen R. Crim               /s/ Joseph D. Scollo
             Stephen  R. Crim, President       Joseph D. Scollo, Jr.