By 
Ask some contractors. They’ll nod in agreement: Contractor’s insurance seems to be costing more and more, particularly in worker-sided states. Ask an insurance agent and you’ll get a ton of information about what causes it.
Some state legislators when it comes to labor disputes are biased towards the worker. It is for this reason that insurance companies will end up paying more in defense and liability costs if a worker is injured on their site. And that is why the premium is higher.
General contractors who operate these locations, as well as property managers, among others who hire subcontractors, should consider obtaining another form of insurance with respect to workers’ compensation liability. While it is true that this insurance, known as action claims, adds to the already high premium costs, in the event there is a third party injury claim and the commercial general liability policy excludes this type of claim, coverage it’s everything.
Action claims insurance protects you if your worker or the subcontractor’s worker is injured and then collects workers’ compensation benefits, then pursues a liability claim against the property owner, who then returns liability to you to you.
Claim of action on: what it means
Here is an example that may help explain the idea of insurance.
Do-All Property Management Company put his signature on a severance agreement provided by an apartment complex he was assigned to oversee. The agreement meant that all occupational hazards were the responsibility of Do-All.
It just so happened that a painter slipped from his ladder. The accident resulted in a severe fracture of both legs. The painter needed money right away to pay for expensive medical bills, hospital stays and lost income, so he filed a workers’ compensation claim with his boss, the Do-All subcontractor.
Now the painter needed a place for further compensation. He knew that suing his boss was out of the question because he had already collected workers’ compensation benefits from her. He was advised to file a multi-million dollar lawsuit against the owner of the apartment complex. Once the owner of the apartment complex was notified of the lawsuit, he contacted Do-All Property Management, who, under the severance agreement, was now responsible for liability.
In the event that Do-All had the foresight to include action claims coverage in its commercial general liability policy, there would be protection and peace of mind. On the other side of the coin, in the event of an action claim exclusion on the Do-All commercial policy, the management company would find itself in ‘hot water’ with the need to pay out-of-pocket in full to third parties. . loads
To learn more about this important coverage for the general contractor and industries like him or her, contact an experienced independent agency.