Parties and their representatives have been grappling with the effects of indemnity claims against an injured worker’s employer since the September 1996 effective date of Workers’ Compensation Law §11, the so-called “Grave Injury Statute.”1 Recently, a number of large New York general contractors have modified subcontract wording in an attempt to trigger an employer’s unlimited coverage under the “1B” portion of the employer’s liability policy even in instances where there is no grave injury.
To date, there are no appellate decisions ruling on whether such agreements to waive statutory defenses are enforceable and if so, their effect on coverage to the employer. Nonetheless, as this discussion will examine, parties and carriers are marshalling their arguments as to this emerging issue.
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