Why Your Business Might Need Stop Gap Insurance

Why Your Business Might Need Stop Gap Insurance

It could be the biggest fear of any employer. An employee who is on worker’s comp for an injury is suing your business for additional damages. It’s a good thing you have Stop Gap Liability Insurance!

Employers with Stop Gap Coverage are protected from lawsuits brought by workers who become sick or injured on the job. Employers liability insurance, which is included with most workers’ compensation policies, provides this coverage in most jurisdictions.

Who Needs It?

Some states don’t include employer liability insurance in their worker’s compensation programs. These are known as monopolistic states or states where the workers’ compensation fund is owned and distributed by the government. Stop Gap Coverage, which is typically an endorsement on a general liability policy, is required for employers liability coverage in these states.

What Does It Do?

Stop Gap Liability can help offset the expenses associated with court costs, legal fees, settlements, and judgments.

These situations could arise when an injured employee sues for additional damages due to the following:

  • If the company works in a field where employees are not covered by workers’ compensation
  • If the employer was careless and unable to provide a healthy working environment
  • If the employee has chosen not to be covered by workers’ compensation,
  • If the employee has become sick as a result of something unrelated to his or her job

Having Stop Gap Liability Insurance can give you peace of mind that your business is protected.