Operating in a state with monopolistic workers compensation markets can introduce gaps in your insurance coverage because typically those policies are dictated by the state’s requirements, without the flexibility that comes when you can bundle it into your other insurance policies or shop around for options for specialized coverage. There is nothing to do about it except finding the coverage you need, and stop gap insurance provides it. This coverage fills in the employer liability protections often included in plans in states with more open markets, so you can manage your risks without any holes in your coverage.
How Stop Gap Coverage Works
This insurance typically requires general liability because this coverage isn’t a single package that robustly covers all your liability, instead it supplements that coverage and provides for the situations not outlined in either your general liability policy or your worker’s compensation coverage. The result is a more robust, nuanced form of protection than you’d have with just those two policies. According to www.wwspi.com, there are several components that have to come together to make this coverage work, and not every employer needs to worry about it. If you are moving into a new state from one that doesn’t have a monopoly market on worker’s compensation coverage, you need to understand how your operations in that state will have different insurance needs from the facilities you run in other states.