Typically, if someone is injured on the job, workers compensation insurance takes effect and covers all medical expenses and lost wages. Except in New York.
Under New York Labor Law 240, 241 and 241A, an injured employee can sue a property owner or general contractor by claiming he or she was not provided a safe place to work. Although the laws were designed to protect workers, there has been a significant uptick in lawsuits that have led many to call for New York to reform their labor laws.
The common method to deal with the labor law on construction projects is to transfer risk from the property owner to contractors. In this case, the contractor’s liability carrier provides defense and indemnity if a suit is brought against them. However, not all insurance carriers are willing to take on the risk. And they have strict guidelines, making qualifying a significant problem for some. And with significant premium increases, some contractors simply cannot afford the proper coverage.
Opponents argue that Sections 240/241 of the state’s Labor Law expose New York’s property owners and contractors to unfair liability, make business insurance expensive and drive up everyday taxpayer costs.
What do you think about New York’s labor laws? Are they in need of change?
Tri-State Insurance Agency provides a comprehensive business insurance portfolio for companies throughout Pennsylvania. We offer a complete suite of insurance products and services to the broad NJ and NY contractor segment with property, liability and workers compensation insurance among other key coverages to cover the exposures that are inherent in the industry.
Contact Tri-State Insurance Agency today for more information on our Contractors Insurance program.