What is stop gap coverage?

Stop gap coverage is a type of insurance that provides temporary coverage for gaps in insurance policies. This coverage is typically used by businesses to fill gaps in their workers' compensation insurance, usually in situations where a business operates in multiple states with varying workers' compensation laws.

Stop gap coverage is designed to protect businesses from liability in situations where their primary workers' compensation insurance does not provide coverage. This type of insurance may also be used to cover certain types of employees who are not covered under the primary policy, such as seasonal workers or independent contractors.

Stop gap coverage can help businesses comply with state laws and regulations regarding workers' compensation insurance, as well as protect them from potential lawsuits or financial liability in case of a workplace injury. This coverage can be purchased as a standalone policy or as an endorsement to an existing insurance policy.

Overall, stop gap coverage provides businesses with an additional layer of protection and peace of mind in situations where their primary insurance policy may not provide sufficient coverage.