How Stop-Gap Insurance Protects a Staffing Agency

Are your staffing agency clients adequately protected from their unique risks? Staffing agencies assist many US companies by hiring a weekly average of 3.08 million contract and temporary workers. With this massive amount of individuals working through agencies, it is smart for your clients to check if their workers’ compensation insurance includes an employer’s liability insurance policy. If it doesn’t, they can use stop-gap insurance coverage to fill in the gaps left by a workers’ compensation policy if they were to become injured while on the job.

Workers’ Compensation policies in monopolistic states do not provide Employers Liability insurance. As a result, staffing firms in those states need to obtain Stop-Gap Liability Insurance so that the coverage can respond and protect their finances if an employer is found negligent in providing a safe and healthy work environment for their employees. Employers Liability coverage is offered to the employer to cover the potential for an employee’s work-related bodily injury or disease instances, other than liability imposed on the insured by a Workers’ Compensation law. You might want to consider reminding your clients that General Liability Policy is required to obtain a stop-gap policy, as it is not written on a monoline basis.

The Benefits of Stop Gap Insurance Protection

Not all states are monopolistic, and as a result, a stop-gap policy may not be necessary. Depending on the state it is issued in, the coverage is commonly paired and associated with a general liability policy or workers’ compensation policy.

The top components of a stop-gap insurance policy are:

  • Bodily injury by disease for each employee
  • Bodily injury by accident for each accident
  • Bodily injury by disease with aggregate limit

Monopolistic states typically do not include employers’ liability with workers’ compensation policies, and this puts staffing agencies at high risk. Stop-gap insurance coverage fills in those coverage limits and “gaps” to ensure the agency does not come across financial devastation if an employee was to become injured on the job. It is in your clients’ best interest to speak to you and take advantage of your expertise in protecting their staffing agencies and determining if their company should secure a stop-gap policy. You should advise them on how they can make efforts to get the coverage they need to protect their business adequately. Staffing stop-gap insurance can make all the difference for your clients.

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.