When doing business in a monopolistic state, it’s imperative to get stop gap insurance coverage. Worker’s Compensation policies in certain states do not provide for Employers Liability Insurance. As a result, staffing firms in monopolistic states need to ensure that they are completely covered. But what is stop gap and what does it do for an agency?
Stop gap covers an employer in the event that they have been found negligent in providing an adequate, healthy work environment for the team. Employer’s Liability coverage is provided to the employer for their employees, in the event of a bodily injury while on the job, other than liability imposed on the insured by Workers’ Compensation Law. Considering U.S. staffing companies have hired an average of 3.08 million temporary and contract workers per week, it’s more important than ever to make sure there’s always coverage. Here’s the benefits of stop gap liability insurance:
Stop Gap Coverage in Detail
Not everyone needs stop gap insurance coverage. Only certain states need this kind of insurance; those states include North Dakota, Ohio, Washington and Wyoming. A general liability policy is required because stop gap is not written on a monoline basis. Some highlights include:
- Bodily injury by accident – each accident
- Bodily injury by disease – aggregate limit
- Bodily injury by disease – each employee
Since the endorsement is primarily used to provide employer’s liability coverage, it’s directly attached to the Worker’s Comp or a general liability policy, depending on whether it’s a non-monopolistic or monopolistic state, according to the International Risk Management Institute (IRMI). It’s hard to say what would happen if your staffing agency did not have the proper coverage. It’s important to be covered in the event of an accident or disease. Without stop gap, your staffing agency will be left with a coverage void to fill.
Who Needs Stop Gap Coverage?
If you’re a staffing agency, hiring manager or recruiter in a monopolistic state, chances are you’re going to need this type of insurance to supplement your Worker’s Comp. Talk to your insurance agent about your needs today. The insurance agent is the first line of defense in protecting your staffing agency. Don’t let having being in a monopolistic state complicate things for your company. Contact World Wide today and get the ball rolling on stop gap insurance coverage.
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 (800) 245-9653 to speak with one of our representatives.