Do You Need Stop Gap Insurance?

Most employers are led to believe that workers’ compensation covers their liability in the event an employee is injured on the job by covering lost wages, medical bills, and so forth. While it’s true that many states bundle liability protection into the worker’s compensation requirements, it’s not universally true. That’s where stop-gap insurance comes in. It covers the liabilities those states do not require standard workers compensation to take care of, without charging you the full amount of a complete, separate employers’ liability policy. That helps streamline your costs without leaving you exposed when someone is injured at work.

Coverage Details for Stop Gap Insurance

Stopgap policies typically have three provisions to fill them out. There’s bodily injury coverage for accidents, which is typically defined with policy maximums on a per injury basis, to make sure you are always taken care of, even if multiple injuries happen to different workers in a single coverage period. Disease coverage is also included, and it typically has a provision for a per-incident maximum and an aggregate policy maximum. Choosing those limits can be tricky, but there are resources out there. For more information, check out this resource from World Wide Specialty Programs that explains who needs to stop gap coverage. It also has more details about what those policy limits mean and how companies select theirs.