What it means
An action over claim starts when an employee is injured on the job, collects workers compensation, and then sues another party such as the property owner or general contractor. That party turns around and seeks recovery from the employer, often under an indemnity clause.
The standard general liability employer’s liability exclusion has an exception for liability assumed under an insured contract, which can allow coverage for these claims. An action over exclusion, usually an insurer specific endorsement, removes that exception and can leave the business exposed.
Workers compensation employers liability coverage may respond to some action over claims, but it generally excludes liability assumed under a contract. California law generally limits these claims against employers unless the employer agreed in writing before the injury.
An example
A carpenter employed by Oakridge Framing falls at a site run by Meridian Builders and sues Meridian. Meridian demands indemnity from Oakridge under their subcontract. Oakridge’s policy carries an action over exclusion, so its general liability insurer declines the indemnity claim and Oakridge faces the cost directly.
Names in this example are fictional.
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How do I know if my policy has an action over exclusion?
Read the forms list on the declarations page and look for endorsements that amend the employer’s liability exclusion or remove coverage for injury to employees under contract. The title may not use the phrase action over. A broker can review the forms and confirm whether contractual indemnity for employee injuries is covered.
Is action over a problem in California?
It is less common than in some states, because California law generally bars third party claims against an employer for an employee’s injury unless the employer agreed in writing beforehand. Many subcontracts include exactly that kind of written indemnity, though, so the exclusion can still matter for California contractors.
General information only. It is not legal or insurance advice. Only issued policy documents and endorsements describe actual coverage.