Workers compensation and stop-gap coverage in Washington State

Washington is one of a few monopolistic states, which means most employers must buy workers compensation from the state through the Department of Labor and Industries (L&I) rather than from a private insurance company. L&I pays medical costs and wage replacement for injured workers. What it does not provide is employers liability coverage, which protects the business when it is sued over an employee injury. That coverage is called stop-gap.

What stop-gap covers

• Lawsuits alleging the employer’s deliberate intent to injure, an exception to Washington’s workers comp protections
• Third-party-over actions, such as when an injured worker sues a general contractor who then seeks recovery from you
• Claims by a spouse or family member related to an employee’s injury
• Injuries to employees working temporarily in other states, depending on the policy

How we help

Stop-gap is typically added to your general liability or business owners policy, and many contracts require it. We confirm it is on your policy with appropriate limits, and help you understand your L&I account, risk class and experience factor. Sole proprietors and corporate officers can sometimes elect L&I coverage for themselves; ask us how that works for your situation.