Published: August 19, 2008 04:28 pm            

EDITORIAL: ‘Absolute liability’ an unneeded statute

Ask someone in the know about New York’s laws on liability insurance and they’ll tell you that smart people are paying for stupid people’s stupidity.

It’s a blunt assessment, but the one we were given when we went asking about the policies business owners in New York are forced to carry.

New York is what’s known as an “absolute liability” state — a statute that mandates a business owner is 100 percent responsible for its employees’ welfare, even if said worker is drunk or on drugs.

That simple fact has caused insurance rates across the Empire State to balloon in relation to other states that place the onus far more on the individual. It makes competing for commerce across state lines more difficult and it forces up prices for consumers because business owners can’t eat the entire cost.

One businessman we talked to this week said his insurance bill went up an astonishing 300 percent recently. Business advocates attribute that increase largely to the state’s stance on liability.

It’s an unfair statute for well-intentioned business owners — the vast majority of whom would say they’re looking out for their workers’ safety already. It is also unnecessary. In this overly litigious society, every patch of ice is a potential lawsuit. We don’t need laws to reinforce what common sense already dictates, that carrying appropriate insurance is important. We also shouldn’t be deciding who’s at fault with catch-all legislation. The courts can sort out culpability when needed.

There is no need for the state to legislate that businesses carry the Cadillac of insurance policies. Loosening those restrictions would help to spur growth and put New York on an even footing with other places that have a more business-friendly approach.

Can we really afford not to do something like that?

        

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