What Is Stop Gap Insurance?
Stop gap insurance helps protect business owners from lawsuits due to workplace injuries or illnesses. Like its name implies, it aims to stop a gap in coverage in a business owner’s el seguro de compensación para trabajadores
When business owners get workers’ compensation insurance from a private insurance company like The Hartford, the policy includes employer’s liability coverage to help protect them from lawsuits due to work-related injuries or illnesses.
Businesses in the four monopolistic states don’t have this protection because they purchase workers’ compensation coverage from a state fund
. So, these business owners get a stop gap endorsement to help protect them from workplace injury and illness lawsuits.
Is Stop Gap Coverage Required?
Since most states require employers to carry workers’ compensation insurance, you may be wondering, “Does my state require businesses to have stop gap coverage?” Stop gap coverage isn’t required by law. Despite this, it’s an important coverage for business owners. Stop gap coverage helps protect you from lawsuits that your employee or their family may file because of a work-related injury or illness. Without stop gap insurance, you’d have to pay for legal costs out of pocket.
What Are the Monopolistic States?
There are four monopolistic states:
- Dakota del Norte
Employers in these states have to get workers’ compensation coverage from a state fund. They can’t get coverage from a private insurer. When it comes to policies purchased through a monopolistic state fund, they can help employees recover from a work-related injury or illness. But it won’t include employer’s liability insurance to help protect from lawsuits.
How Do I Get Stop Gap Liability Insurance?
Stop gap liability insurance is an endorsement you can get from an insurance company. Small business owners can get a business insurance endorsement to add to their general liability insurance
policy. General liability coverage helps protect your business from claims that it caused bodily injury or property damage to someone else.
Get a Quote for Stop Gap Coverage From The Hartford
Stop gap coverage is an important endorsement that many businesses need. Whether you have a small or large business in a monopolistic state, stop gap coverage can help protect you from costly lawsuits. Our specialists can work with you to make sure you get the right coverage for your business. So, if you’re looking to add a stop gap endorsement to your general liability insurance policy, we’ve got your back. Get a quote
today for stop gap coverage.