As an employer in Washington, you may think the state Workers Compensation program thoroughly protects your business from the costs associated with employee injuries. Many do not know the state’s coverage does not include Employer’s Liability. This means you could still be on the hook for legal fees and settlement costs if the employee decides to sue for additional damages.
This coverage gap can be filled by adding a Stop Gap endorsement to your general liability policy. The cost is typically around $10-$20 a month for a million dollars of coverage and could be vital for small to mid-sized businesses that would be burdened by a costly or lengthy legal suit. The coverage can be used for attorney, defense, and court costs, as well as any settlements in favor of an injured employee.
If you have employees or plan on hiring employees over the next coverage term, we recommend adding this endorsement to round out your business insurance package and for peace of mind that your policy will work for you when you need it to.