In New York State the problems relating to obtaining proper coverage at rational prices for General Contractors and/or Paper General Contractors is magnified by the New York Labor Law (240-241) which dates back to the 19th Century. Under this law, and partially due to its judicial expansion over the years, the landlord of a multi family dwelling or apartment building is held to be stricly liable for most bodily injuries occuring to employees of contractors or vendors while on the landlords premises. Since he is held to be strictly liable by statute for most kinds of accidents, the only issue for a jury is the amount of the damages.
What happens is that the claimant collects Workers’ Compensation benefits for medical costs and loss of wages from his employers insurer under WC,(the WC Reform Act of 1996 has made the contractor/employer virtually suitproof by the employee) and then he or she sues the landlord/cooperative/condominium/Office Building Owner, etc., under the statute.
The only way around this is contractual, thus if the Landlord has insisted on having a signed contract in advance of the work being performed and under it the contractor/sub-contractor holds the owner harmless and agrees to indemnify him,pay for his defense and to include him as an Additional Insured on the Contractors Policy then the owner has a shot of avoiding the costs.
Landlords in NY have finally seen the light and are demanding that these requirements be met by all contractors. This has shifted much of the strict liability exposure to the contractors GL insurance carrier under it’s Additional Insured Endorsement which must name the Landlord, thereby making the coverage more difficult to obtain, and when obtained making it very expensive. Even when contractor coverage can be obtained the policies tend to be written in non admitted carriers, and they contain difficult warranties which void coverage if the GC has not obtained the same contract and insurance language & proper evidence of insurance coverage from all his subs. Until this situation is remedied and the strict liability provisions are repealed, the problem can only become worse and the costs of construction which are already out of hand will continue to escalate.
In New York State the problems relating to obtaining proper coverage at rational prices for General Contractors and/or Paper General Contractors is magnified by the New York Labor Law (240-241) which dates back to the 19th Century. Under this law, and partially due to its judicial expansion over the years, the landlord of a multi family dwelling or apartment building is held to be stricly liable for most bodily injuries occuring to employees of contractors or vendors while on the landlords premises. Since he is held to be strictly liable by statute for most kinds of accidents, the only issue for a jury is the amount of the damages.
What happens is that the claimant collects Workers’ Compensation benefits for medical costs and loss of wages from his employers insurer under WC,(the WC Reform Act of 1996 has made the contractor/employer virtually suitproof by the employee) and then he or she sues the landlord/cooperative/condominium/Office Building Owner, etc., under the statute.
The only way around this is contractual, thus if the Landlord has insisted on having a signed contract in advance of the work being performed and under it the contractor/sub-contractor holds the owner harmless and agrees to indemnify him,pay for his defense and to include him as an Additional Insured on the Contractors Policy then the owner has a shot of avoiding the costs.
Landlords in NY have finally seen the light and are demanding that these requirements be met by all contractors. This has shifted much of the strict liability exposure to the contractors GL insurance carrier under it’s Additional Insured Endorsement which must name the Landlord, thereby making the coverage more difficult to obtain, and when obtained making it very expensive. Even when contractor coverage can be obtained the policies tend to be written in non admitted carriers, and they contain difficult warranties which void coverage if the GC has not obtained the same contract and insurance language & proper evidence of insurance coverage from all his subs. Until this situation is remedied and the strict liability provisions are repealed, the problem can only become worse and the costs of construction which are already out of hand will continue to escalate.