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. If you don’t know much about the stop gap coverage, you can learn more below on important facts about stop gap coverage.
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. Therefore, it is possible that you have included but you don’t know and that is why it is also important to learn. It might be included but one important thing you to realize is that it works differently than the Worker’s Compensation coverage does. It is because the Worker’s Compensation insurance coverage will not protect you and your company. It is primarily protecting the employee in case they are injured at the workplace if they sustain very severe injuries. Also, stop up coverage is different because it protects your business. When employees are injured at your workplace. 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, the work hand in hand, but the truth is they serve different purposes.
Most companies can include the stop gap coverage on the Worker’s Compensation coverage but in some state, the business owner is demanded to obtain the stop gap insurance separately. Some states like Wyoming, North Dakota, Ohio, and Washington will demand that you obtain the stop Insurance coverage. There is also where you will be demanded to buy from the state fund and not private insurance companies. Depending on where you are, you can look at what you are supposed to do for that. It is also important to realize that the stop gap coverage can cover attorney fees, court costs and many more. It is also wise of you that you can understand the terms of the stop gap coverage because the terms will always vary from one insurance company to another and that is why you need to discover more about them even from the company’s website. Ensure you have one because it can give you peace of mind because it will cover you in case of any lawsuit.