Home Knowledge General Liability Insurance and Workers’ Compensation: What’s the Difference?

General Liability Insurance and Workers’ Compensation: What’s the Difference?

Today, incidents at the workplace have become inevitable, and that makes workers’ compensation and general liability insurance more important than ever for businesses. Both insurance policies offer optimal coverage and can help your business run optimal operations without disruption.

Workers’ compensation and general liability have become the most standard insurance policies for small businesses. But the difference between the two is often not clear.

To help you make the right decision, let’s break down the two insurance coverage options:

General Liability

Generality liability insurance or electrician liability insurance provides protection to businesses from legal claims related to third-party property damage or bodily injury. The damage could be to the property during electrical work or injury to a customer at the workplace.

Moreover, general liability for electrical contractor insurance offers protection from slander or libel-related claims. It is vital to understand that general liability insurance does not protect businesses in an electrician service lawsuit.

In comparison, general liability has become quintessential for each business despite size or structure. Some states, however, don’t require worker’s compensation. But General Liability is the perfect insurance for all size and types of businesses to protect themselves from various third-party claims. Typically, it can cover:

  • Ongoing operations
  • Unwarranted exposure to premises
  • Product defects
  • Personal injury offenses
  • Advertising injury
  • Third-party damage to the property
  • Tarnished reputation

General liability insurance can cover legal costs for your small business. It can also cover evidence costs, witness fees, and settlements. You can even customize different aspects of the general liability insurance and tailor it to your business’ needs.

Workers’ Comp Insurance

Although the laws are different in each state, workers’ compensation is legally required insurance for small businesses. Essentially, workers’ compensation offers protection to employees and small businesses amidst workplace injuries or incidents.

The benefits of workers’ compensation cover the medical costs and lost wages until a particular employee is fit to return to work. But compensation comes into play in case of permanent disability. For instance, if an unfortunate event occurs and a worker passes away at work, workers’ compensation would benefit his or her surviving family.

The goal of workers’ compensation is to identify and resolve workplace accidents. There are short-term and long-term injuries that fall under the umbrella of workers’ compensation. For instance, it can offer coverage if someone falls off a ladder on off-site work premises.

It is no secret that roofing contractors have one of the toughest jobs. It is the sole reason more contractors have started to opt for roofing insurance to get complete coverage. At its core, worker’s compensation safeguards the interests of the employees and allows businesses a fair shot to mitigate the issue.

Bottom Line

In retrospect, general liability insurance is for third-party individuals harmed by an event. Conversely, worker’s compensation is for individuals employed by organizations and get hurt or injured at the workplace. It is crucial for businesses to learn what type of incidents each insurance policy covers.

Now that you’re aware of the basic differences between two insurances – seek guidance from our agents to learn more about electricians insurance and roofers insurance.

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