What is stop-gap liability? Most employers don’t have a lot of familiarity with the term, but for staffing firms that operate in states with no employer liability option, it’s an essential level of protection against liability you can’t always control. Staffing companies are unique in that they wind up assuming many of the employer liabilities without having control over any of the workplaces where their people operate. As a result, it’s possible to be found negligent and liable for an employee’s injury without knowing the hazard existed. In a perfect world, visits to client sites would unveil everything, but in the real world, there are insurance options.
Employer Liability vs. Stop Gap
You might be wondering why you can’t just grab employer liability insurance, which is often the resource staffing firms reach for. Unfortunately, there are states where the worker’s compensation laws are written in a way that precludes the coverage from being offered. That leaves you with limited options, and stop-gap liability was designed to fill in those options. World Wide Specialty Programs can be a resource for understanding more about this coverage, how it fits with your existing coverage options, and what other insurance needs you might have that are related to the stopgap coverage. Learn more today.