No matter your state, as an employer, you need workers’ compensation insurance. While some states allow you to forego insurance if you have less than five employees, the general rule is that you will need workers’ compensation coverage. In some instances, you may need stop gap liability insurance.
What Is Stop Gap Insurance?
According to the experts at World Wide Specialty Programs, stop gap insurance is coverage for employers that protects against lawsuits where they may be held negligent or liable for an employee’s injuries or illness. This is a coverage that attaches directly to the workers’ compensation insurance. This type of insurance may cover bodily injury through disease and accident.
Who Need Stop Gap Insurance?
Employers who own businesses in monopolistic states need stop gap insurance. These are states where you do not purchase workers compensation from private insurers. Instead, you have to purchase it through the state itself. In these states, it’s imperative to have coverage. In addition, it is extremely important if you are an employer in a staffing agency.
As an employer, it is important that you have adequate coverage if your employees are injured while performing work-related duties. If you don’t have coverage, you could wind up liable for any costs involved with the worker’s injuries or illness.