What is action-over coverage and why do MSAs require it?

Action-over coverage (sometimes called third-party-over or crossover liability) protects against claims where an injured employee's lawsuit against a third party (like the tower owner or GC) results in that third party seeking indemnification back from the employer. In standard WC, the employer has tort immunity from employee lawsuits, but the third party does not. When the injured worker sues the tower owner, and the tower owner tenders back to the subcontractor under the MSA indemnification clause, that is an action-over claim. Without action-over coverage, the GL policy's employer's liability exclusion (Exclusion E - Employer's Liability) may block the claim because it arises out of an injury to your own employee. MSAs require it because tower owners know they will be named in injury lawsuits and need certainty that the subcontractor's insurance will respond to the indemnification demand. Action-over coverage can be provided by endorsement removing or modifying the employer's liability exclusion for additional insured claims, or through the employers liability section of the WC policy (Coverage B). The mechanism varies by carrier and must be confirmed in writing. This is one of the most misunderstood coverage requirements in the tower industry.