Stop Gap Workers’ Comp for Employers Liability Insurance

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Mordechai Kamenetsky
Last Updated: 
January 31, 2024

Stop gap workers' comp protects business owners in monopolistic states against lawsuits arising from workplace injuries. Unlike the majority of states, where employers liability insurance is included as part of a standard workers’ comp policy, monopolistic states do not offer this coverage through their workers’ compensation insurance

What is stop gap coverage? 

What is stop gap coverage? 

Stop gap coverage protects business owners in the 4 monopolistic states against lawsuits arising from workplace injuries. 

In these states, businesses are required to buy workers’ comp insurance directly from a state fund. They cannot buy insurance from an insurance company like businesses in non-monopolistic states can. 

There are 4 monopolistic states: 

  1. North Dakota
  2. Ohio
  3. Washington 
  4. Wyoming 

In  the rest of the United States, an additional insurance called employers’ liability insurance is automatically added to every standard workers’ comp policy. This coverage protects employers against lawsuits arising from workplace injuries. 

However, this isn’t the case in the four monopolistic states. Since this coverage is not included, there’s a ‘gap’ in the coverage.

To fill this gap, business owners can purchase ‘stop gap’ insurance, which makes sure they are covered against lawsuits filed by employees for workplace injuries. 
How do I get stop gap coverage?

How do I get stop gap coverage? 

Stop gap liability insurance is available as an endorsement you can get from an insurance company. Business owners can get a business insurance endorsement added to their general liability insurance policy. General liability insurance helps protect your business from claims that it caused bodily harm or property damage to someone else.

Get a Quote for Stop Gap Workers Comp from Kickstand 

For businesses operating in monopolistic states, it’s crucial to obtain stop gap workers' comp to ensure comprehensive coverage. Kickstand can provide the necessary stop gap endorsement to complement your existing general liability insurance, closing any gaps in your coverage and protecting your business against potential workplace injury claims. Reach out for a quote today!

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Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.

Mordechai Kamenetsky

Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.

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