The Difference Between General Liability and Workers Comp Insurance

As an employer, you need protection from the dangers that wait for your employees outside of work. General liability and workers comp insurance are both essential types of insurance that give you peace of mind in the case of an accident.

Yet they have key differences that many people overlook while they’re hunting for affordable workers comp insurance quotes. First, we’ll take a look at what General Liability insures.

Differences in Who Is Affected by an Injury

Generally, when an injury occurs, two types of insurance coverage can be the deciding factor in who is affected; General Liability and Workers Comp Insurance.

General Liability is designed to protect a business from lawsuits arising from accidental injuries to customers or visitors in the workplace or property damage caused by a business.

By contrast, Worker’s Comp Insurance exists to pay medical bills and disability benefits caused by a workplace accident to a business employee. While both types of insurance cover an injured party, the type of coverage determines who is affected.

General liability ensures that customers and visitors are protected, while worker’s comp is specifically for employees of the business. Therefore, depending on who is injured, different types of insurance may be needed to cover the costs associated with the injury.

Differences in The Reason a Lawsuit Is Filed

General Liability and Workers Comp Insurance are two important types of insurance that have been put in place to protect businesses from lawsuits. General Liability Insurance is used to protect the business from any third-party injury or property damage claims.

Workers Comp Insurance is used to protect the business from any injury or illness for which an employee may be covered. Both types of insurance provide protection from a lawsuit, but the reasons for a lawsuit being filed are quite different.

A lawsuit associated with General Liability Insurance may arise from property damage or bodily injury sustained by an unrelated third party. A lawsuit associated with Workers Comp Insurance may arise from an injury or illness sustained by an employee while performing duties related to their job.

It is important for businesses to be knowledgeable about the differences between General Liability and Workers Comp Insurance in order to know the best options available to protect them from potential lawsuits.

Differences in Damage to Property

General Liability and Workers Comp Insurance provide different levels of coverage for damage to property. General liability insurance covers property damage claims related to accidents or negligence of the company. This type of insurance can cover consequential losses, such as diminished property values, loss of use, and repair costs.

Workers comp insurance covers medical expenses related to on-the-job injuries, as well as death benefits and disability payments to injured employees. However, workers comp insurance does not cover damage to property resulting from an employees negligence, such as an employee intentionally damaging a customers property while performing a service.

Consequently, businesses need to purchase general liability insurance in addition to workers comp insurance in order to obtain coverage for damage to property. Check this homepage to know more about workers comp insurance.

Learn About General Liability and Workers Comp Insurance

To summarize, it is important for business owners to understand the differences between general liability and workers comp insurance. Having both types of insurance is necessary to protect businesses from a variety of risks. 

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Written by Patricia

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