Important Info on Stop Gap Coverage
If you own a business, it is highly advisable that you can have a stop gap coverage endorsement included in your business insurance policy. The stop gap coverage policy most of the times is known as employer’s liability insurance which is very beneficial to the company because in case of your employees goes ahead and files a lawsuit against you, it will be a good protection. This is because most of the times of workplace-related injuries because almost 3 million workplace injuries happen every year in the US. Discussed more below are some important facts on stop gap coverage especially if you don’t know much about it as a business owner.
One of the things you might not know is that most of the times, it might be part of the Worker’s Compensation coverage policies. Actually, very many businesses of this coverage, but don’t know that they have included it in the Worker’s Compensation insurance coverage and that is why it is important to know. It might be included but one important thing you to realize is that it works differently than the Worker’s Compensation coverage does. This is because the Worker’s Compensation insurance coverage doesn’t protect you and your company. The Worker’s Compensation coverage is designed to protect the employee when they sustain injuries in the workplace. The stop gap coverage is different because instead of protecting the employee to protect the business against workplace-related injuries. Where the stop gap coverage works is when the employee decides to sue the entire company because you are not providing a safer environment for them to work. Therefore, also the Worker’s Compensation coverage and stop gap coverage work hand in hand because of workplace-related injuries, they serve different purposes.
It is also important to note that although some businesses can work with the Worker’s Compensation coverage, in some state business owners are demanded to obtain the stop gap insurance. Some of the states that will demand that includes, Washington, Ohio, North Dakota, and Wyoming. There are some states that also demand that you buy from state fund rather than private insurance companies. You can read more about that to know where you fall. It is also important to realize that the stop gap coverage can cover attorney fees, court costs and many more. You also need to realize that the the stop gap coverage can vary from one company to another and that is why you need to read more here to discover about those terms. Having this coverage therefore is very beneficial to you and also for your company because it will give you peace of mind in case anything happens.
Citation: click to read