Legal Question in Real Estate Law in New York

Re: liability responsibility of the co-op board

This should be paid by the contractor's liability insurance carrier. I cannot imagine that the coop would have let a contractor touch the building unless the contractor (a) had good insurance and (b) named the coop and the managing agent as additional insured parties on that insurance policy. It would have been a good idea for you to be named as an additional insured as well. Finally, do not overlook your own insurance policy. You should have a liability insurance policy of your own. NOTIFY YOUR INSURANCE BROKER IMMEDIATELY AND MAKE SURE THE CARRIER IS PUT ON NOTICE. The carrier will handle most of the sticky details of going after the contractor's insurance. If you were named as an additional insured on the contractor's policy, make sure your broker knows about it and PUT THE CONTRACTOR'S CARRIER ON NOTICE OF THE CLAIM.

Who is legally responsible depends, in the first instance, on the terms of the Alteration Agreement between you and the Coop. Any well-managed coop will require such an agreement, and it may well describe "the work" as including the replacement of the lead pan...in which case, most likely, it is you that will indemnify the coop against this loss, not the other way around.

The central message is to notify your insurance broker and make sure that all of the insurance companies are put on notice of the occurrence and claim.

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