Stop gap coverage

Cover insurance gaps in your workers’ compensation insurance policy.


What is stop gap coverage?

As its name implies, stop gap coverage is a specific type of insurance that employers may purchase to fill potential gaps or limitations in their workers’ compensation coverage. This gap in coverage is called employers liability insurance, which protects against workplace injury lawsuits.

When and why might you need to secure stop gap coverage?

Business owners usually only need to look into stop gap insurance if they’re located in certain monopolistic states. In a monopolistic state, the government has complete control and authority over certain aspects of life or the economy within its territory.

In the context of insurance, this means the government is the sole provider of workers’ compensation insurance, and private insurance companies aren’t allowed to sell this coverage. The government uses state funds, funded by premiums that employers pay, to compensate employees for work-related injuries.

Monopolistic states include:

  • North Dakota
  • Washington
  • Wyoming
  • Ohio

Otherwise, stop gap coverage is typically included in your workers’ compensation coverage.

How does stop gap coverage work?

Workers’ compensation insurance gives benefits to employees who suffer work-related injuries or illness. It can cover medical expenses, lost wages and other related costs.

But workers’ compensation laws are different in monopolistic states, meaning businesses are legally obligated to buy workers’ compensation insurance from the state fund. However, there may be cases where the coverage is limited, for example, it doesn’t encompass employers’ liability coverage.

This is where stop gap coverage steps in to give employers protection if an employee files a lawsuit for a work-related accident that’s not fully covered by workers’ compensation.

By the way, if you buy workers’ compensation insurance through NEXT, employers liability coverage is already included — no stop gap needed.

How to get customized coverage with NEXT

At NEXT, we aim to provide you with affordable, custom business insurance suited to your business needs. It’s as easy as answering a few questions online, and you’ll receive your tailored instant quote within 10 minutes. Once your insurance is active, you can immediately access your certificate of insurance and share it 24/7 via the NEXT app.

Start a free instant quote with NEXT.

banner get business insurance in 10

There’s a lot to love about NEXT

Business insurance in less than 10 minutes

Get insurance in less than 10 minutes and you can save up to 25% in discounts*

Tailored business insurance

Unique, flexible coverage with easy monthly payments

Get business insurance online

Do it all 100% online or talk to a licensed U.S.-based advisor

Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
What we cover
Chat with Us

Mon – Fri | 8 a.m. – 5 p.m. CT

© 2023 Next Insurance, Inc. 975 California Ave, Palo Alto, CA 94304, United States
Better Business Bureau
Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.