Critical Facts behind 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. 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. 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.
Most of the times, it might be included in the Worker’s Compensation coverage. 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. If it is included the good for you, but if the is totally different because it works differently than the Worker’s Compensation coverage does. This is because the Worker’s Compensation insurance coverage doesn’t 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. The stop gap coverage, on the other hand, exist primarily to offer protection for your business when your employees are injured. 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.
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 are some states that also demand that you buy from state fund rather than 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. It is also important that you read more here about the terms of the coverage because it can vary from one insurance company to another. Knowing that you are covered for such work-related injuries can also give you peace of mind.