stop gap endorsement

A stop-gap endorsement is an endorsement that is primarily used to provide employers liability coverage for work-related injuries arising out of exposures in monopolistic fund states (fund workers compensation policies do not provide employers liability coverage).

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Additional Information

If the employer has operations in nonmonopolistic states, the endorsement is attached to the workers compensation policy providing coverage in those states. For employers operating exclusively in a monopolistic fund state, the endorsement is attached to the employer's general liability policy.


Related Terms

State funds are state-owned and operated organizations that write workers compensation insurance.