The article of the month deals with third party over actions. One of the leading disputes dealing with construction projects from a liability standpoint involve lawsuits brought by employees of contractors who are injured and seek damages for alleged liability caused by project owners and/or other contractors. Since, as a general rule, workers compensation statutes preclude injured employees from bringing lawsuits against their own employers, those injured seek out other parties from whom the payment of damages are possible for their work-related injuries.

When an injured employee files a lawsuit against some third party, such as a project owner or general contractor, the third party will then often sue the employer for being at least partially at fault. These kinds of lawsuits are commonly referred to as third party actions or third party over actions. The article of the month examines these third party over actions and offers some case law on the subject.

The court cases this month come from U.S. District Courts in New York and the U.S. Tenth Circuit Court of Appeals. The U.S. District Court for the Western District of New York was presented with an insurance coverage dispute centering on the applicability of the total pollution exclusion when the insured allegedly discharged a substantial amount of contaminated sediment onto the property and homes of underlying plaintiffs. The U.S. District Court for the Southern District of New York handled a case pertaining to an insurance coverage dispute regarding the obligation of the insurer to defend and indemnify certain parties to an underlying personal injury action wherein the insurer invoked the independent contractor exclusion in the general liability policy. Negligent entrustment and uninsured motorists coverage form the basis of the case discussed by the U.S. Circuit Court.

Questions and Answers

Is water damage caused by a crushed underground pipe covered under a condo policy? See Crushed Pipe and Condo Water Damage. Is water damage and mold caused by the freezing of a sprinkler head covered when the building is vacant? See Vacancy Provision and Water Loss.

Sinkhole Collapse and Mine Subsidence

This article discusses the hazards of sinkholes. What causes them and what coverage is available to add to the homeowners form. Mine subsidence is also explained, as coverage is different than that for sinkholes. See Sinkhole Collapse and Mine Subsidence.

Standard Homeowners Endorsements

This article reviews the more common homeowners endorsements. Updated versions are discussed as well as new endorsements. See Standard Homeowners Endorsements.

ISO Homeowners Comprehensive Form, HO 00 05

The update to the Homeowners Comprehensive Form is discussed. The form provides broader coverage than the standard HO 00 03. See ISO Homeowners Comprehensive Form HO 00 05.