Understanding 1B Coverage Under New York Workers’ Compensation Law

When an employee suffers am injury while working in New York, the Workers’ Compensation Law provides the employer with complete immunity from a lawsuit for damages by the employee against the employer, WC benefits are the exclusive remedy for the employee. However, when the injury takes in circumstances where a non-employer may be responsible for the injury, such as a multiparty construction sites, frequently create significant third-party liability exposure for employers.

If an injured worker sues a third party – such as a general contractor or a property owner – that third party will often file a common-law contribution or indemnity claim against the employer. But if the employee suffers a “grave injury,” such as death or loss a limb, the non-employer may seek to recover against the employer. This claim will not be covered under the general liability (GL) insurance policy of the employer but will be covered under the employer’s Workers’ Compensation and Employers’ Liability or 1B coverage of its WC policy.

At Melito & Adolfsen P.C.,our firm provides thorough insurance coverage evaluation and defense litigation strategies to protect insurance companies and their insured employers from these high-exposure claims. We focus on defeating these pass-through liabilities by holding third parties strictly to policy and statutory thresholds.

The Statutory Framework: Section 11 And Section 29(6)

Managing risk under New York Labor Law requires a strict analysis of the statutory boundaries established by the state legislature. Two primary provisions dictate whether a third-party claim against an employer can survive:

• Workers’ Compensation Law Section 11: This statute bars third-party claims for contribution or indemnity against an employer unless the plaintiff has sustained a statutorily defined “grave injury” or the employer entered into an express written indemnification agreement prior to the accident. The statutory list is narrow, and New York courts construe it strictly.
• Workers’ Compensation Law Section 29(6): This provision establishes that workers’ compensation is the exclusive remedy when an employee is injured by the negligence or wrongful act of another in the same employ. We use this statute to dismiss third-party actions that attempt to circumvent employer immunity through co-employee liability theories.

Our defense attorneys thoroughly analyze the medical records and accident reports to determine if the third-party action violates these statutory restrictions. If the injuries fall outside the specific legislative list, we seek dismissal, either by agreement or motion, to insulate the employer and the carrier from liability and ongoing defense costs.

Multiparty Construction Risk Allocation

On large commercial construction sites, a single incident can trigger claims involving owners, general contractors and multiple tiers of subcontractors. We analyze the insurance picture which may include wrap-around programs or commercial general liability towers to determine proper allocation. This may include identifying additional insured obligations and applying anti-subrogation principles, which may transfer the risk away from the employer’s 1B coverage.

Why GL Insurance Carriers Look To Our Firm To Tender To WC Carriers When 1B Coverage May Be Appliable

Insurance claims directors require pragmatic legal counsel that protects the bottom line without sacrificing litigation strategy. Our firm stands out in the New York market through a combination of insurance coverage know-how and decades of defense experience.

• Direct attorney access: We eliminate the layers of bureaucracy found at larger firms. Claims professionals speak directly with the handling defense attorneys. Your calls are returned by the litigator managing the file, ensuring real-time strategic updates.
• Dual coverage and defense capacity: Our lawyers are both advisory counselors and trial litigators. We draft comprehensive coverage opinions and try cases in state and federal courts. This dual capability allows us to evaluate policy text while preparing a trial-ready defense.
• Active cost management: We recognize that protracted litigation drains financial resources. We utilize early case assessments and targeted discovery to position 1B disputes for favorable resolution, avoiding unnecessary billable hours.

This combination of access, versatility and cost-conscious service helps our firm provide effective representation in the New York court system.

Frequently Asked Questions: 1B Coverage Defense

Our legal team has provided answers to the most common questions related to 1B coverage under New York law.

What constitutes a ‘grave injury’ under New York law?

Under New York Workers’ Compensation Law Section 11, a grave injury is limited strictly to a specific, statutory list. This includes:

• Death
• Permanent and total loss of use or amputation of an arm, leg, hand or foot
• Loss of multiple fingers or multiple toes
• Loss of an index finger
• Paraplegia or quadriplegia
• Total and permanent blindness or deafness
• Loss of a nose or ear
• Permanent and severe facial disfigurement
• An acquired brain injury caused by external physical force resulting in permanent total disability

Injuries missing from this explicit list do not qualify, regardless of their medical severity.

Call our New York City office in Manhattan at 212-238-8900 to speak directly with a defense attorney. You may also reach out through our secure online contact portal to schedule a consultation.

Important Notice: As a dedicated defense practice, WE ARE NOT A PLAINTIFF’S FIRM. We exclusively represent insurance companies, insureds of the insurers, self-insured businesses. We may advise uninsured individuals but generally cannot agree to defend them if they have no insurance. We do not accept personal injury plaintiff cases or handle workers’ compensation claims or applications.