The “Action Over Coverage” Insurance Problem for Small Contractors in New York

The issue of “action over coverage” has become a significant concern for small- to medium-sized contractors in New York, and it does not appear there will be any easy solutions any time soon.    

The issue generally arises when a contractor is hired for a renovation or construction project in a building and one of the contractor’s employees gets injured or accidentally injures someone else while working on the job. He can put in a claim for Workers’ Compensation, but he may also try to sue the property owner of the building he was working in, if his injuries were due to negligence on the part of building maintenance. The property owner will defend himself by claiming that he is also covered as an additionally insured party under the contractor’s insurance policy.

What Happens If You Under Insure Your Space?

Though the odds of a total loss may be small, it could happen.

That is the reason insurance companies do not want you to under insure a building because you think you can’t afford whatever amount the insurance is.

If you have a $10 million building and decide you can’t afford to pay for $10 million worth of insurance, so you only insure it for half a million dollars, the insurance company will likely penalize you for insufficient insurance if there is a claim. 

Commercial Property Insurance: Basic, Broad or Special

Seeing an insurance broker as opposed to an agent has many advantages, especially when shopping for commercial property insurance.

There are three types of commercial property insurance, referred to as Basic Form, Broad Form and Special Form. These policies differ in the items that are covered, so achieving the best outcome takes experience and practical knowledge.

Speaking broadly, the three types of commercial property insurance are:

The Affordable Care Act – Not So Affordable?

The Way We Were —

Prior to 1990, most health insurance plans involved a deductible – and coinsurance after the deductible was reached. It was affordable and uncomplicated.

The early ’90s brought higher insurance rates, co-pays and the “in-network/out-of-network” system. Co-pays were associated with the “in-network” providers. Deductibles and coinsurance would apply if the patient went to an out-of-network provider.

Hole-in-One Insurance

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What is “hole-in-one insurance?”    

If the organizers of an event wish to offer a prize but would rather not give out that prize, they can purchase an insurance policy called “hole-in-one Insurance.” In this way they can add excitement to their tournament or event without the risk of a payout.

How Much Liability Insurance Does Your Lease Require You to Buy?

Whenever a tenant moves into a new office, there is almost always an insurance provision on the lease that mandates the amount of liability insurance you must purchase.

Leases almost always contain requirements that your insurance policy cover the landlord as well as yourself. This is because if someone slips and injures themselves in your unit, they will likely sue both the tenant and the landlord who owns the property in which the incident occurred. 

Do You Know the Difference Between Flooding and Seepage?

Water damage is among the most frustrating kinds of losses to deal with because there is so much confusion about what is covered and what is not.

The first thing to remember about flood insurance is that where the water came from makes all the difference.

Do I Have to Pay My Annoying Insurance Bills? Yes, You Really Do.

{2:40 minutes to read} Once upon a time, an insurance broker had a client who hated to pay his premiums…

Many business owners go through phases where they have to stretch every dollar and pay their bills strategically. If you ever find yourself in this situation, do yourself a favor and make sure your insurance premiums are treated with the same urgency as your rent or mortgage.

Is Your Business Under-Insured?

Business owners know that having the right insurance policies in place is vital, but not everyone realizes the importance of having enough insurance.

Estimating the insurance needs of a new business entity does not go easily with running a business. There are so many different factors to consider that the best course of action is often to get the regular help of a professional – someone with years of experience getting coverage for all different types of start-up companies.

Young People Have Options under the ACA

One of the goals of the Affordable Care Act is to get more young people insured. It attempts to do so on two different fronts: By making it easier for grown children to stay covered on their parents’ plan, and by making it more affordable for young adults to afford coverage in their twenties.

Parents’ Plan

Under the law, insurance companies are required to insure adult children on their parents’ plan until the age of 29 at the latest: