240 labor law hits family's business hard.

Dean and Steven Horvath, who own a second-generation plumbing company in Westchester, say their general liability insurance has tripled in the last two years because of the 240-241 Labor Law.

The Horvaths and more than 450 contractors like them descended on the state Capitol last week to tell their 240/241 labor law stories to any legislator who would listen. More than 150 did.

The Horvaths' father began their Blueprint Plumbing Corp. 25 years ago.

"Every October we renew our insurance," said Dean. "This year, our insurance doubled. It came down to the 12th hour to get insurance. Ten years ago, we would have had several carriers to choose from. Now we have two."

In New York City, to purchase $1000 worth of liability insurance a contractor pays $634 a year, in New Jersey that same insurance costs $129 and in Connecticut the premium is $99, said Ron Berger, executive director of the Sub-contractors Trade Association.

The construction industry points the blame for the increase in premiums squarely on the 240 Labor Law, where incidents similar to the ones the Horvaths experienced are happening across the state.

A Blueprint employee worked less than a week and claimed he was injured on a jobsite. No injury report was ever filed by the employee, but two years later the case was settled out of court for $100,000. The employee was given workers compensations benefits, as well.

"He said he got hurt and never came back to work," said Dean.

"He sued the owner of the building, who came back on us. He claimed back injury. He never told us he was injured. We knew it was bogus, but it was cheaper for us to let the insurance company pay him off."

Without a defense in court, the Horvath's hands were tied.

No matter how the injury occurred or who or what caused it, there is no defense for the contractor when it comes to the clause in the bill "absolute liability."

"It's almost feels like every time someone gets hurt on the job, I wait for the lawsuit," Steven said.

"It's frustrating. When does an individual worker take responsibility for his own actions?"

The Horvaths had another incident recently where a worker wandered off a Blueprint worksite onto another contractor's worksite in the same building. The employee slipped and fell.

"We can't say anything," said Steven. "We can't explain our side. We can't defend ourselves."

This case too was settled out of court for hundreds of thousands of dollars, they said.

"This cycle is getting worse and worse," Dean said. "Hopefully the legislation will do something. Right now it's pro-worker, pro-labor. And we can't defend ourselves."

With or without claims, contractors are feeling the pinch in insurance premiums.

"I've had no claims and my premiums have gone up 40% in the last two years," Craig Gilston, of Gilston Electricral Contractors. The construction industry associations are urging contractors with stories like the Horvaths to contact their legislators and the governor's office.