It is in any business owner’s best interest to try to make sure their employees do not become injured on the job, but a mishap here and there is inevitable. Most business owners obtain worker’s compensation to ensure their employees are taken care of if anything does happen; however, a standard workers’ compensation policy may have gaps that leave too much room for risk. Stop Gap coverage refers to an additional policy to fill those gaps. It is essential to cover those policy exclusions because business owners would otherwise be held accountable for expenses that could become financially devastating.
The Ins and Outs of Stop Gap Insurance
Are your clients adequately protected? Stop Gap insurance will protect an employer from the liability that comes with any allegations regarding an unsafe workplace. Workers’ compensation will only cover specific job-related injuries, while Stop Gap insurance is a broader coverage protecting employers from the liability associated with just about all employee injury or illness. Workers’ compensation alone contains too many exclusions and gaps to have the peace of mind needed to stay focused on business operations. Many instances can still occur, regardless of the risk management that is in place. Slips, falls, and machinery accidents are all too common.
Why Stop Gap Insurance is So Important
If an employee does become sick or injured, it is likely they will sue their employer. Stop Gap insurance is a type of Employment Practices Liability insurance, and staffing firms must be protected with this coverage. Just about every type of industry depends on staffing firms to meet business demands, and there are inherent risks when the employees they recruit are onboarded with another employer. Since staffing agencies are the initial employer, they are responsible for their safety.
When a staffing firm recruits employees, they may be financially dependent on the contracting employer and therefore employed by both their actual employer and the contracting employer. Staffing firms should have Employment Practices Liability insurance specifically designed to protect against claims brought by an applicant or employee for allegations such as discrimination, sexual harassment, and wrongful termination.
Your clients will want coverage for applicants, a staffing firm’s in-house employees, and, of course, to be added as insureds, not just “additional insureds,” on the policy. Your clients should work with you to determine their greatest risks and what coverage gaps they have. Be sure to discuss the importance of staffing agency EPLI with your clients so they are not left in the dark and don’t encounter any surprises with policy gaps.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.