Does General Liability Cover Workers’ Comp? Know Your Policy

When deciding which type of insurance policies their business needs, many business owners ask, ‘does general liability cover workers comp?’ While both types of insurance are crucial for a well-protected business, general liability insurance does not cover workers' compensation claims. 

General liability insurance only protects you from third-party claims, such as when a client suffers an injury on your property and sues you for medical expenses. For situations where an employee is injured on the job, workers' compensation coverage steps in. 

Understanding General Liability Insurance

When protecting your business, it’s essential to understand what general liability insurance covers. This insurance serves as protection against common business liability claims and helps ensure that a simple mistake doesn’t financially devastate your business.

What does General Liability Insurance cover?

General liability insurance typically protects your business from a range of potential financial liabilities:

Bodily injury: If a non-employee is injured on your business
premises

Property damage: When your business activities cause damage to somebody else's property

Legal defense and judgments: Includes legal expenses if your business faces a lawsuit, regardless of the lawsuit's merit

Personal and advertising injury: Protects against slander and libel claims against your business

Remember that these are just the foundations of a general liability policy, there are usually options you can tailor coverage to fit your business needs. Ask your broker to tell you more.

What does General Liability Insurance NOT cover?

While comprehensive, general liability insurance does not cover everything. Here are some key exclusions:

Employee injuries: This is covered by workers’ compensation insurance, not by a general liability policy

Professional errors: Also known as malpractice, errors are covered by professional liability insurance

Intentional acts: General liability insurance will not protect against damages resulting from intentional harm caused by you or your employees

Business vehicle accidents: These require a separate commercial auto insurance policy

Exploring Workers' Compensation

Before we dive into the details, it's important to understand that workers' compensation is a form of insurance providing wage replacement and covering medical bills costs to employees injured while at work or on a jobsite.

How does Workers' Compensation Insurance Work?

Workers' compensation ensures that employees who are injured or disabled on the job are compensated, without having to take legal action. 

Here's what you need to know:

No-fault coverage: An employee can get benefits no matter who caused their injury or illness

Exclusive remedy: Workers' compensation is usually the only option employees have for getting compensation for job-related injuries, which means they typically can't sue their employer over these injuries

What does Workers’ Comp Insurance cover? 

Workers' Compensation is a type of insurance that protects employees who get injured while at work and covers the following: 

Medical Expenses: all medical treatment related to the
injury

Lost Wages: a portion of the employees wages will be paid during their recovery

Rehabilitation Costs: any physical therapy or retraining necessary for the employee to resume work

Death Benefits: Financial support for the dependents of a worker who has died from a work-related incident

What are key differences between General Liability and Workers’ Compensation?

When you're running a business, understanding the different types of insurance can save you from costly surprises. General Liability and Workers' Comp insurance are both essential, but they serve different purposes.

General Liability Insurance is your safeguard against claims that your business caused bodily injury or property damage to others. Say a client slips in your office and gets hurt; general liability insurance can cover their medical costs. 

On the other hand, Workers' Comp Insurance steps in when your employees get injured on the job. It's designed to cover their medical expenses, rehabilitation costs, and a portion of lost wages. Remember, general liability won't cover your employees in these situations; that's what workers' comp is for.

Get Protected: Consult with an Expert Today

Remember, while your general liability policy is crucial to protect your business, it doesn't alleviate the need for workers' compensation insurance. For the safety and well-being of your employees—and to guard your business against unexpected financial burdens—consider reviewing your policy closely or talk to an expert to ensure you're adequately covered.

Interested in finding out more about your coverage options? Don’t hesitate to get an instant quote today to seamlessly secure the right protection for both your business and your team.