Stop gap insurance coverage

Monopolistic States and Workers’ Compensation

Employers in monopolistic states face unique challenges with regard to worker safety. Stop gap insurance coverage exists to help employers in these state cover claims that would, in other states, be covered by workers’ compensation policies.

What Are Monopolistic States?

North Dakota, Ohio, Washington, Wyoming are all monopolistic states for purposes of workers compensation. This means that an employee injured on the job as a result of some error, neglect, or omission by the employer may sue that employer for damages. This action will not be covered in those states by workers’ compensation insurance, even though it would be covered in other, non-monopolistic states.

What Are the Risks?

Under the conditions described above, an employer might face exposure if an employee can prove that equipment was poorly maintained, working conditions were unsafe, or an environment was unsafe. Given the enormous range of possibilities this can open up, an employer without coverage that includes such lawsuits could face significant losses.

Types of Claims

The two types of claims employers face, bodily injury or disease as a result of errors, omissions or neglect, can both be covered by the appropriate stop gap policy. The needs of each industry and individual business will vary, so it’s important to consult an insurance professional about the specific concerns you have for your company. Stop gap insurance coverage protects employers and their businesses when workers’ compensation programs will not.

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