In monopolistic states, employers have to obtain workers’ compensation coverage from a state fund. Private insurance companies cannot provide workers’ compensation insurance. Unfortunately, when it comes to these policies, they do not always cover all liabilities. This can leave employers open to lawsuits.
If you have a business in a monopolistic state, you need stop gap insurance coverage.
What Does a Stop Gap Policy Cover?
Stop gap policies cover liabilities that workers’ compensation does not cover. It can cover bodily injuries by accident and disease to employees outside of the workers’ compensation coverage. You would attach the stop gap policy to your workers’ compensation policy or your general liability policy. If you have a contractor or employee who claims that your negligence led to an accident or injury, he or she could file a lawsuit that you have no coverage for.
How Can You Obtain Stop Gap Insurance?
If you do business in a monopolistic state, then odds are, you need stop gap insurance. To obtain coverage, discuss your options with an insurance agent. He or she will be able to analyze your current worker’s compensation coverage to decide what your supplemental insurance needs are.
Workers’ compensation coverage provided by the state government does not generally cover employers if employees allege negligence.