stop gap insurance coverage

Many employers fail to receive sufficient workers compensation coverage, not because they are negligent or unable to pay, but rather because their state laws do not allow it. Learn how stop gap insurance coverage can help employers cover any loose ends in their workers liability insurance.

What is a Monopolistic State?

A state which requires employers to qualify as a self-insurer or to receive workers compensation insurance from a state fund is considered a monopolistic state. This can create limitations in which workers compensation can be used by an employer due to the state’s existing rules or regulations. The following U.S. states or territories herald the characteristics of a monopolistic state.

  • North Dakota
  • Wyoming
  • Ohio
  • Washington
  • Puerto Rico
  • Virgin Islands

Are Workers Liability Coverage Gaps Avoidable?

Even though state jurisdictions prevent an employer from receiving adequate coverage, the risk of work-related injury or illness claims persist. For this reason, insurance agencies who serve employers in monopolistic states offer comprehensive stop gap insurance coverage. If an employer is found negligent in providing a healthy or safe environment for their workers, this coverage will protect them from any losses.

Since the insurance can not cover the work-related injury or illness claims as they are, it is designed to cover the liability that results from the restrictions imposed by workers compensation regulations. Additional general liability and staffing insurance is not included in a stop gap plan.