Workers’ compensation coverage pays for medical care and physical rehabilitation of employees injured at work and helps to replace lost wages while they are unable to work.
Additionally, this coverage protects an employer from being sued by an injured worker in most cases.
A & M Insurance Services, Inc. can help your business find complete solutions to your unique workers compensation insurance needs. We’ll find solutions that create safer and more productive workplaces, more confident and secure workers and overall savings you’ll see on the bottom line.
Coverage for office workers using their own vehicles on company business is often needed, as well. If you have employees, it is critical that you consider this workers compensation coverage.
Washington – What you need to know about workers compensation insurance
Workers‘ compensation is a form of employer insurance that provides injured employees with compensation for work-related injuries. In Washington state the Department of Labor and Industries manages claims and benefits out of an insurance pool called the Washington State Fund, which is financed by premiums paid by employers. Washington is one of only four states that have monopolistic worker’s compensation state funds. The other three states are Ohio, Wyoming, and North Dakota.
Stop Gap Coverage. The term stop gap coverage, or a stop gap endorsement, refers to an employer filling a gap in their workers’ compensation insurance coverage by purchasing an additional policy or endorsement. Stop gap coverage protects business owners from lawsuits filed over workplace injuries.
Generally, business owners are protected from such lawsuits by employer’s liability insurance that is included in their workers’ compensation coverage. However, in states that require business owners to purchase workers’ compensation from a monopolistic state fund, the employer’s liability coverage is typically excluded.
Stop gap coverage provides protection against allegations that an employer has not provided a safe work environment. While workers’ compensation pays for job-related injuries, employer’s liability is a separate clause of the policy. It protects the employer from being held liable for worker injury or illness.
A workers’ compensation policy from a monopolistic state fund does not include the part of the policy dealing with employer liability. To prevent a worker from holding the employer liable for an injury or illness, the employer should consider purchasing stop gap coverage from an insurance provider if they are located in any of those four monopolistic worker’s compensation states. Otherwise, employer’s liability insurance is typically included in your workers’ compensation coverage at no additional cost
To find out more about stop gap coverage, workers compensation coverage or any of our products and services, contact A & M Insurance Services, Inc. today by calling 425-228-7406.
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