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. 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.
It might already be part of your 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. 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. The Worker’s Compensation coverage is designed to protect the employee when they sustain injuries in the workplace. 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. 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 realize that different estate will demand that you obtain the stop gap insurance, also in other states, they can comfortably work with the Worker’s Compensation coverage. 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. To know where your business lies, you can always read more about all those regulations. The stop gap coverage will cater for any other expense that comes about from the lawsuit, including the attorneys’ fee, court costs and so on. 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. Knowing that you are covered for such work-related injuries can also give you peace of mind.