Workers Compensation Coverage responds to medical expenses and lost wages as a result of a work related injury. The coverage is regulated at the state level and all benefits are paid in accordance with the schedule provided by the respective statutes. State Workers Compensation Bureaus typically play a large role in setting the rates for the various job classifications. Regulations will vary from state to state regarding how coverage and rating bases apply to offices, members of an LLC, partners, and volunteers. Employer’s Liability (Part B) covers the liability that may be imposed beyond the state statutes subject to the exclusions and conditions of the policy.
Stop Gap responds to the gaps between the workers compensation policy and the CGL which can leave an insured uncovered. In most states the carriers attempt to correct these by use of the employer’s liability coverage. However, in monopolistic states (OH, WY, ND and WA), the workers compensation carrier is the state so the General Liability carrier is the one who attempts to fill the gap. Operations with locations in any of the monopolistic states should purchase Stop Gap liability.