Employee safety is a crucial aspect of any workplace. While most employers provide a safe environment to work in, some accidents can happen that are not preventable. As an employer, having a policy protects you if your employee is injured at work and decides to sue you. The stop gap employer’s liability coverage comes in handy in such situations. Let’s understand the meaning of stop gap employer’s liability coverage before we get into its importance.
What Is Stop Gap Employers Liability Coverage?
Stop gap employers liability coverage is a policy designed to help if your employee gets a work-related injury or illness and sues you. Its design helps fill the gaps in traditional workers’ coverage and provides you, the employer, additional protection. Stop gap employers liability coverage is required in monopolistic states where workers’ compensation policies don’t include employers liability insurance. This policy can help pay for medical expenses, lost wages, and other related expenses. If you, as the employer, don’t have stop gap employer’s liability coverage, you will pay for these expenses out of your pocket.
The Importance of Stop Gap Employers Liability Coverage
Now that you understand the stop gap employer’s liability coverage, let’s look at the importance of this type of insurance.
Protection from Employee Lawsuits
Generally, a worker’s compensation policy prevents your employee from suing you for workplace injuries. However, you may not be fully insulated from lawsuits from these employees. That’s where a stop gap employer’s liability coverage comes in, providing an extra layer of protection when an employee sues you.
Coverage for Out-of-State Operations
Does your business operate in multiple states? If yes, it’s important to note that workers compensation laws may vary. A stop gap employer’s liability coverage ensures you’re well protected regardless of the state your employee is working in.
Filling Gaps in Workers’ Compensation
As mentioned earlier, stop gap employer liability coverage can help bridge gaps in workers compensation insurance. This ensures your employees receive the necessary compensation for any injuries or illnesses arising from the working environment.
Coverage for Temporary Employees
The stop gap employers liability coverage is important if you frequently hire temporary or contract workers. It not only ensures the workers are fully covered but also protects you against lawsuits from them in the event of injuries sustained at the workplace.
You Can Have Peace of Mind
As an employer, you’re responsible for ensuring your employees work in a safe environment. It’s also vital to keep measures for full compensation in place if they ever sustain work-related injuries. The stop gap employer liability coverage gives you peace of mind knowing your employees are covered. You’ll also not have to worry about legal cases that can arise from not having this insurance in place.
Take Away
Stop gap employer liability coverage is important for any business owner, as it protects you against lawsuits from employees and fills gaps in workers compensation. It also covers temporary employees and protects your financial stability. As a result, you can have peace of mind and concentrate on one crucial task: running your business.