States that dictate a monopolistic worker’s compensation structure to businesses often leave companies with some exposure due to liability for injuries on the job by workers who are considered contractors at the state level and employees under the tests imposed by federal law. They do not make provisions for employer liability coverage, which is the kind of policy usually used to fill gaps in worker’s compensation coverage. That’s where stop gap employers liability comes in.
How It Works
Stop gap policies are pretty much what their name implies. An insurance provider assesses your workforce, worker’s compensation coverage, and potential gaps where you would be liable for damages without additional coverage. Then the policy is built to address those specific holes with limits that reflect your real potential for damages. The result is a tailored piece of coverage with an efficient price point, making it essential for any business with liability coverage gaps due to the dictates of an inflexible worker’s compensation system.
Finding a Program for Your Business
Stop gap coverage should be purchased from a program with a well-established track record of service to companies in your state. That’s because every state dictates different coverage rules for worker’s compensation, so not even two states with monopolistic systems are the same. When a provider has experience quoting for companies in your state, getting a quote that suits you is much easier.