Certain states that temporary agencies are set in are known as monopolistic states and do not provide insurance for temporary employees. In these cases, it is up to the staffing agency to ensure employees are protected. Learn more about stop-gap liability insurance, and why it is important to have.
Understanding Where Stop Gap Coverage is Necessary
According to https://www.wwspi.com/, states that are monopolistic are North Dakota, Wyoming, Washington, and Ohio. Only in these states is it necessary to have coverage that is stopgap. Both staffing agencies and recruiters can benefit from having this type of coverage if they are in the business of finding and placing employees.
What Stop Gap Coverage Entails
Choosing stop gap liability insurance covers incidents such as bodily injuries by accident and disease. Without this type of protection, an agency or recruiter could run into issues. This could include being sued by the employee and losing out on a lot of money should the employee win the case. This might force them to close their doors. It is better to be safe, and have the necessary coverage in order to prevent these problems.
Protecting Both Business and Employee
Stop gap liability insurance can protect both business and employee. Having it on hand ensures fewer problems and keeps the company operating safely.