New York Labor Law · Contractors
The “action over” claim that lands on your policy
In New York, an injured worker’s lawsuit can travel back through the general contractor and land on your company — and one exclusion buried in your general liability policy can leave you paying it. Here’s how it works, and how to find out if you’re actually covered.
What “action over” means
A worker’s injury comes back around to you
“Action over” is the lawsuit a general contractor or property owner brings against your company after one of your own employees is hurt on a job. It’s the single most dangerous liability a New York subcontractor faces, and it follows a predictable path:
A worker is injured
Their only claim against their own employer is workers’ comp. By law, they can’t sue you directly.
They sue the owner & GC
New York’s Labor Law holds the property owner and general contractor to a strict standard for construction injuries.
They come “over” to you
The owner and GC sue your company — the employer — on the indemnity you signed in the subcontract. That suit is the action over.
Why New York is different
The Scaffold Law pushes the loss down the chain
New York Labor Law §240 — the “Scaffold Law” — and §241(6) place near-absolute liability on owners and general contractors for gravity-related and site-safety injuries, often regardless of how careful anyone was or whether the worker contributed to the accident.
Because workers’ comp blocks a direct suit against the employer, that liability flows down to the subcontractor through indemnity clauses and additional-insured requirements. It’s why New York — and New York City above all — is one of the hardest and most expensive construction-liability markets in the country.
The exclusion hiding in your coverage
Many general liability policies — especially quick online quotes and out-of-state admitted programs — carry an action over exclusion. It may be written as an employer’s liability exclusion, an “injury to employees of insureds” exclusion, or a New York Labor Law exclusion. Whatever it’s called, it removes coverage for exactly this claim: when a GC sues you over an injury to your own employee.
You can be fully “insured,” name every general contractor as an additional insured, and still have no coverage for the one lawsuit most likely to hit you in New York.
What good coverage looks like
Five things to confirm before you sign the next job
- ✓Action over coverage in place. The exclusion removed or bought back by endorsement, so your GL actually responds when a GC sues you over your employee’s injury.
- ✓Adequate employer’s liability limits. The Part Two limits behind your workers’ comp sized for New York, not left at the default.
- ✓An enforceable indemnity clause. A subcontract indemnity that holds up under New York law and is matched by what your policy will cover.
- ✓The right additional-insured endorsements. Ongoing and completed operations for your GCs — without a Labor Law carve-out quietly gutting them.
- ✓A real market for your class and state. New York Labor Law risk usually needs a carrier that knowingly writes it, often through surplus lines — not a generic online program.
FAQ
Action over coverage in New York, answered
What is an action over claim in New York?
Does my general liability policy cover action over claims?
What is the New York Scaffold Law and why does it matter?
I named the GC as additional insured — am I covered?
How do I get action over coverage in New York?
Which New York areas does NextGuard cover?
More New York resources
Related pages & guides
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This page is general information about insurance and New York Labor Law, not legal or coverage advice. Whether any specific claim is covered depends on the exact policy forms, endorsements, and facts of the matter. For advice on your situation, speak with a licensed agent or attorney.