Stop Gap Employers Liability: What to Check in State Fund States
Stop gap employers liability addresses a different question from statutory workers compensation benefits. Where the statutory arrangement does not include employers liability, a separate policy or endorsement may be needed to satisfy the contract. Review both documents and the actual work states before approving the requirement.
Identify the gap precisely
North Dakota WSI’s published account memorandum explicitly says its coverage does not include general or employers liability insurance. That statement establishes the distinction for WSI. It should not be converted into an assumption that every other state-fund program has identical wording or options.
King County’s published contractor requirements provide a practical contracting example: they discuss employers liability protection and a stop gap endorsement for relevant state-fund circumstances. Those are that buyer’s requirements, not a nationwide legal minimum.
Ask the broker for the actual evidence
Request the policy or endorsement that supplies the proposed employers liability protection. Ask the broker to identify:
- The insured employer and relevant state or territory.
- Which employee-injury liability is addressed, subject to terms and exclusions.
- The applicable limits and whether the contract’s separate categories are satisfied.
- Effective and expiration dates.
- Any required underlying statutory coverage or other conditions.
- Whether proposed excess coverage applies, if the contract permits it.
Do not infer these answers from the phrase stop gap typed into a certificate remark. A certificate description should be supported by the policy documents.
Example: statutory evidence is complete, liability evidence is not
A hypothetical North Dakota subcontractor supplies a current WSI Certificate of Payment. Its contract separately requires employers liability protection. The GC records the WSI evidence and asks for the proposed separate coverage. If the broker sends an endorsement, the reviewer checks its employer, state, period, limits and conditions. The GC does not assign invented employers liability limits to the WSI certificate or assume a general liability policy automatically fills every gap.
Keep the two renewals connected
Separate policies can renew on different dates. Track each relevant document and preserve the link to the vendor and project. If an underlying requirement changes or a policy lapses, reopen the review rather than relying on the other document’s unchanged date.
Read workers compensation versus employers liability and the employers liability limit guide for the supporting checks. Use the broker request checklist to ask precise questions and the COI renewal calendar to organize follow-up dates.
Sources checked November 3, 2026.
Frequently asked questions
Does state-fund workers compensation always include employers liability?
Do not assume so. North Dakota WSI expressly says its coverage excludes employers liability; check the actual program in every relevant state.
Does a stop gap endorsement replace statutory workers compensation?
No. It addresses a different liability gap and does not replace the required statutory benefit arrangement.