All You Need to Know about Stop Gap Coverage
Many companies have business insurance policies but it is also important for every business owner should endeavor to have a stop gap coverage policy. Most of the times, it is referred to as employer’s liability insurance and can provide a lot of protection for your business in case any employee files a lawsuit against the company. 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. One of the things you need to know about the Worker’s Compensation insurance coverage is that it is not designed to 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. It’ll work in the sense that an employee files a lawsuit that you are not doing whatever it takes to provide a safer environment because it will be suing the entire business. Therefore, the work hand in hand, but the truth is 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 states like Wyoming, North Dakota, Ohio, and Washington will demand that you obtain the stop Insurance coverage. Some will demand that you also buy from public and not private insurance companies. Depending on where you are, you can look at what you are supposed to do for that. 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.