Critical Facts behind 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. It is good coverage to have because it will protect your business in case that any of your employee files are also against the company and that is why it is also referred to as employer’s liability insurance. Considering that more than 3 million workplace-related injuries are reported in the US every year, it is very important to consider this coverage because that what the lawsuit may involve. It is possible that you don’t know much about it and that is why you should continue reading more below to understand important facts behind 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. 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. However, it is also necessary to realize that it works differently than Worker’s Compensation coverage does. This is because the Worker’s Compensation insurance coverage doesn’t protect you and your company. What you need to know about the Worker’s Compensation coverage is that it primarily protects the employee in case there are workplace-related injuries. 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. One of the important things you need to learn, therefore, is that stop gap coverage and Worker’s Compensation coverage work hand in hand but 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. This happens a lot in North Dakota, Ohio, Washington and also Wyoming. Some will demand that you also buy from public and not private insurance companies. You can read more about that to know where you fall. Having the stop gap coverage is very helpful because, in case of a lawsuit, it will cover very many expenses, including the court costs and attorneys fee. 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. Ensure you have one because it can give you peace of mind because it will cover you in case of any lawsuit.