Ask a few contractors˳ They’ll nod their heads in agreement: Contractor insurance seems to cost more and more, particularly in states that side with the laborer˳ Ask an insurance agent and you’ll get an earful about the causes˳
Some state legislature in regard to labor disputes are predisposed to the worker˳ It’s for this reason that insurance companies will end up paying more in defense and liability costs if there is a worker that gets injured at your site˳ And it’s for this reason, the premium is higher˳
General contractors operating in these places, as well as property managers – among others like them that hire subcontractors – need to think about getting another form of insurance in regard to worker accident liability˳ While it’s true that this insurance, known as action-over claims, adds to already high premium costs, in the event there’s a third-party injury claim and the commercial general liability policy excludes this type of claim, coverage means everything˳
Action-over claims insurance protects you if your worker or the subcontractor’s worker incurs injury and then collects worker comp benefits – and then targets a liability claim against the property owner who then casts the liability back to you˳
Action-Over Claim – What it Means
Here’s an example that may help explain the insurance idea˳
Do-All Property Management Company put its signature on an indemnification agreement provided by an apartment complex it was assigned to oversee˳ The agreement meant all job risks were the responsibility of Do-All˳
It so happened that a painter slipped off his ladder˳ The accident resulted in a serious breakage of both legs˳ The painter needed money right away to take care of expensive doctor bills, hospital stays and loss of income so he filed a workers compensation claim with his boss – Do-All’s subcontractor˳
Now, the painter needed a venue for further compensation˳ He knew that suing his boss was out of the question because he had already collected workers comp benefits from him˳ He was advised to file a multi-million lawsuit against the apartment complex owner˳ Once the apartment complex owner was notified about the suit, he contacted Do-All Property Management who as per the indemnity agreement was now responsible for the liability˳
In the event Do-All had the foresight to include action-over claims coverage with his commercial general liability policy, there would be protection and peace of mind˳ On the other side of the coin, in the event there was an action-over claims exclusion on the Do-All business policy, the management company would find itself in ‘hot water’ with the need to pay total out of pocket third-party charges˳
To find out more about this important coverage for the general contractor and industries like him or her, contact an experienced independent agency˳
Source by https://ezinearticles˳com/?Understanding-Action-Over-Claims-for-the-Contractor&id=9838543
