BUILDING OWNERS & TENANTS BEWARE!!!
NEW LIABILITY ISSUES THAT ARE NOT COVERED
UNDER YOUR GENERAL LIABILITY INSURANCE.
READ FOR MORE INFO OR CALL US
NEW LIABILITY PROBLEM
We would like to make you aware of a new liability problem if you own or rent property in New York (other than a one or two family house). This notice will explain that liability and how you can take action to avoid it.
If someone doing work on your property is injured, you may be held “absolutely liable” under the New York Labor Law. This means that for certain kinds of accidents (a fall off a ladder) the worker does NOT have to show you were negligent or did anything wrong in order to win a lawsuit. In many of these cases you will have NO DEFENSE to liability at all under your insurance contract since an insurance contract covers you for negligence.
We have identified two ways to try and avoid this problem and there may be others. We strongly recommend that you discuss these with your own attorney and start using one or more of these methods as part of your routine business practices when allowing contractors onto your premises to do work.
Make certain that any contractor doing work for you provides you with a current certificate of insurance naming your organization as an ADDITIONAL INSURED and indicates that the coverage provided is primary and covers both direct and vicarious liability. In addition to getting the actual certificate, your written contract with the contractor should also recite that they are going to provide this insurance on your behalf.
The second way is to have a written contract with the contractor. The contract must contain an “indemnification agreement” so that if a worker gets injured and sues you merely because you are the owner or lessor of the property, the employer (the contractor you hired) will have to pay to defend the case and any other money owed.
Contact EIFS for a sample “Indemnification Agreement.”
Of course, it is always important for you to seek your own legal advice for any contract you sign.
In addition to being named as an additional insured and signing a contract that contains an “Indemnification Agreement, it is always important for you to ensure that the contractor has both workers compensation and general liability insurance.
If we can be of any further assistance, please call us.
Executive Insurance and Financial Services
or Toll Free: (888)343-7463