STOP GAP OR EMPLOYERS LIABILITY COVERAGE. In monopolistic workers compensation states, where the coverage provided by the state is not as broad as that of a workers compensation policy including employers liability coverage, many insurers offer a coverage called stop gap or employers liability coverage. This can be added by endorsement to the CGL policy, to an out-of-state workers compensation policy or it may be issued as a stand-alone policy. It fills the gap between the coverage provided by the state and the coverage traditionally provided by a Workers Compensation and Employers Liability Policy issued in other states.
Related PF&M Article: Stop Gap-Employers Liability Insurance