Action over claim suit

Posted: Mon Jul 12, 2010 10:30 pm Post Subject:

"Action over claim" is sometimes known as "third-party over". In many instances, it involves an employee's claim for injuries directly to a property owner instead of to his employing contractor.

I'm not familiar with New York law, but it should be substantially similar to California law. Normally an employee's on-the-job injuries are subject only to workers' compensation claims. However, circumstances beyond the control of the employer, such as a defective machine, could give rise to an employee's claim for damages from a third party who may have direct liability, which could be over and above the WC claim. For example, when a contractor is removing asbestos from an aged building, WC typically does not apply to an employee's exposure to the asbestos itself. Liability for the worker's "injury" could attach to the building owner who hired the services of the contractor rather than to the contractor.

So it could mean that the insured's GL policy will not pay a claim until any claim under WC Law is settled or denied. If there is additional liability, then the GL policy may pay. It appears that the GL carrier just wants to see how the WC claim plays out first.