Businesses large or small that employ staff have a responsibility to provide a safe working environment for employees. However, even when safety guidelines and protocols are followed, accidents and illnesses can occur and the employer may be held liable for damages. Typically, workers’ compensation policies contain coverage for employer liability, but in monopolistic states, this type of coverage is not included. Therefore, businesses need to invest in supplemental stop gap insurance to guarantee protection in the event of a claim.
When You Need To Supplement Your Coverage
Monopolistic states require employers to buy into a fund that provides workers’ compensation coverage. These states include:
- North Dakota
However, these state funds do not provide liability insurance for employers. To make up for this lack of coverage, stop-gap insurance should be purchased. This type of policy protects an employer against job-related accidents or injuries as well as illnesses that may have originated in the workplace. With this coverage, an employer is insured against allegations of unsafe working conditions.
Whether a business hires 10 employees or hundreds, supplemental stop gap insurance is essential if the company is in a monopolistic state that doesn’t provide employee liability coverage. Purchasing additional insurance is akin to purchasing peace of mind. Smart business owners understand that guarding against liability is critical for success and that this type of protection pays off in the long run.