My friend, I truly hope that you're aware of the fact that as per the state rules, the contractors have to get the certificate of genl. liability before starting up. Similarly, they'd also need to make sure that their sub-contractors are maintaining a min. amt of liability & following the state norms. In case, they fail to meet up this responsibility, then it is the contractor's obligation & similarly the cost will fall upon you. The extra cost would be borne by your premiums. Thats all we can think of by an action over insurance coverage.
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Action over claims occurs when the employee of the contractor sues the property owner directly for liabilities and injuries suffered during the work. It is normally excluded under the commercial liability policy taken out by the contractors and sub contractors.
Over 36% of the total claims filed form remediation activities arise out of action over claims. And often these claims involve large dollar amount. Therefore, the property owners need to safeguards themselves from action over claims.
Rupert
Yeah right, Rupert. Action over claims can be a reason of headache for the property owners. Because, action-over claims normally arises long after the work is done. Sometimes, even after a year. It includes injuries that have resulted from pollution exposure or harmful substances and may take even a longer period to develop.
Moreover, if the employee of the contractor sues you for the action-over claim, you may not get the opportunity to shift the responsibility to the contractor, because some jurisdiction may not allow it. Therefore, as a property owner you are exposed to the risk of action over claims.
One way to avoid it is by closely monitoring the liability insurance of the contractor. So that it doesn't fall short to compensate the injured worker. Because, the worker can sue you once he has exhausted all the benefits available to him under the workers compensation policy.
But buying a coverage which will protect you from action over liabilities may be a better solution. Such coverages are now available in many states. You can look for one in your state too.
