There are times when a company needs to extend its employee injury insurance past the workers’ comp coverage they carry. Most states allow for companies to carry private insurance coverage for mandated injury liability, but four do not. These include North Dakota, Ohio, Wyoming, and Washington. Within these states, companies are required to obtain coverage through state-funded programs, which leaves a gap in some additional areas of liability. The information found at https://www.wwspi.com states that stop-gap insurance addresses this exposure.
Areas of Liability
The exact nature of gap insurance is what other companies carry in the form of employer liability coverage. This covers the potential suits of
- Third-party suits
- Public tort claims
- Intentional endangerment
- Dual capacity claims
- Injury or illness not covered by workers’ comp plans
Additionally, leased employees are excluded from the worker’s compensation plans. The endorsement of employer liability would be enacted in most states, but within the four mentioned above, stop-gap insurance becomes the defense.
The Cost of Coverage
Most insurance companies will determine the base price of stop-gap coverage according to your company’s payroll total. For normal liability policies in private insurers, it is often an endorsement set at a minimum amount. Check your current policy to see if employer liability is addressed, and if not, contact your broker for a quote on extending your coverage.