Double Dosed Insurance: Workers Compensation & General Liability

If you have a business in the United States, you have likely already come across the two insurances we are talking about today: General Liability and Workers Compensation. What are they for? Is it necessary to have both? How do you know which ones your company needs?

Understand how each insurance works, how they help protect your company and its employees, and most importantly, the advantages of combining the two.

What is General Liability Insurance?

Also known as liability insurance, General Liability protects your company’s financial health. Insurance will help cover costs when your company is held legally responsible for an incident.

However, this policy does not cover employee injuries. Instead, General Liability covers damages to third parties (non-employees), including:

Bodily Injuries caused by a person in your company
Damage you accidentally caused to someone’s property
Advertising injuries (slander, defamation or trademark infringement)

If you are sued for one of these issues, the insurance will pay for your legal defense and any court settlements or judgments – up to the policy liability limit.

What is Workers Compensation?

Workers Compensation is business insurance that financially compensates employees who have suffered work-related injuries or illness. Most states require employers to take out this coverage if they have at least one employee. Laws vary depending on your industry and the state where you live. This policy covers:

Compensation to employees’ dependents in the event of death.
Medical and recovery expenses for employees with work accidents.
Maintaining an employee who cannot work because of a covered injury or illness.
Pension payments and funeral expenses in case of fatal accidents at work.
Liability expenses if your company is sued for an accident at work.

If you do not have employees, this coverage can still be used to cover any accidents that happen to you while you are in action for your company.

General Liability vs Workers Compensation

We have already seen that the two insurances protect your operations from costs arising from accidents that may happen to your employees or persons involved in the service and from damage to the property of third parties, but what are the main differences?

Workers Compensation protects your employees, General Liability protects your company from third-party claims about liability issues.

Both cover wounds. Workers Comp. covers employee injuries, and Liability covers any injuries caused by your service or employee to a non-employee, such as a customer.

Workers Compensation is regulated by law and mandatory in many states. Liability is not required by state law, but may be required by partners, customers or financial lenders.

Should I take out both insurances?

For a solid business with minimized risks, it is ideal to have both coverages, as one policy protects you from claims when third parties are injured on your property or while performing a service and the other helps your company comply with the law and protect their employees, who are their greatest assets.

General Liability coverage can be part of a commercial insurance package, such as BOP, which also includes commercial property insurance, business interruption insurance, and other coverages tailored to your operations. Buying liability coverage, along with other coverages, in a commercial package will increase your security and help you save on total fees.

A Workers Compensation policy is done separately since it can be purchased for specific periods and for different people. The cost depends on your industry, state and previous workers’ compensation claims.

If you work in a quieter industry like accounting or marketing, your business will be seen as less risky than someone working in construction or motorcycle delivery. Insurance rates are always proportionate to the risks.

Where can I purchase both insurances?

BRZ will simulate for you the best quotes on the market at the time of your request. As we’ve said before: for us, the best deal is not the biggest profit, but the most adequate coverage with payments that you can afford. There are no magic tricks, fine print or hidden charges!

We want satisfied and safe customers! At BRZ, you come first!

Make a simulation today and if you have any questions, you can reach out to us directly through Whatsapp, Instagram, Twitter or Facebook. If you prefer to meet face-to-face, you can find us at one of our convenient locations with a smile on our face and a fresh pot of coffee.