No matter what kind of business you run, you need a policy that covers expenses associated with injuries and illnesses that employees get on the job. For many employers, workers compensation coverage or employer liability policies handle these costs. If you own a staffing agency, have higher risks, or are in a state where workers comp doesn’t cover liability, however, you may need stop gap coverage to pick up where other policies end.
The Purpose of Stop Gap
The main purpose of stop gap coverage is to pay legal expenses if you are implicated for negligence in a workers compensation claim. There are several costs that may be included:
- Attorney fees
- Court costs
- Settlement expenses
In many states, these fees are covered by the employer liability included in the workers comp policy. Some states’ policies, however, exclude this feature. You may need stop gap coverage in the state of Ohio if you are sued when an employee gets injured in the workplace. As implied by the name, this policy can bridge the gap between protecting your employees and protecting you when such incidents occur.
A legal battle can have a detrimental effect on your company. Stop gap coverage protects you financially when an employee is injured and accuses you of negligence.