General Liability vs. Workers' Compensation Insurance | Insureon (2024)

FAQs

Is general liability worth it? ›

A general liability insurance policy is essential if you open your business to the public, handle client property, or rent or own commercial property. It can protect you from expensive lawsuits for only about 42 dollars per month. Don't put your business at risk, apply for your policy today.

General liability insurance definition

General liability insurance can help cover medical expenses and attorney fees resulting from bodily injuries and property damage for which your company may be legally responsible.

General liability covers physical risks, such as bodily injuries and property damage. Professional liability insurance covers more abstract risks, such as errors and omissions in the services your business provides.

The maximum liability employers take on can range from $10,000 to $1 million, and generally fall within 3 to 6 percent of the expected annual claim amount.

What Happens If You Don't Get General Liability Insurance? Most legal defense, settlements, court fees, or judgment costs can quickly add up and could be expensive. If there ever is a situation where an individual files a claim against your small business, you may need to hire legal counsel.

Some large businesses may choose to self-insure to save money and control costs for their commercial property, auto and general liability coverages.

In summary, while CGL policies provide broad coverage for general business liabilities, policyholders should be aware of common exclusions like expected harm, contractual obligations, pollution, aircraft/watercraft, and professional services.

A: No, a CGL policy does not cover injuries to employees. Employee injuries are typically covered under workers compensation insurance, which is specifically designed to provide coverage for medical expenses, lost wages, and rehabilitation costs for employees injured on the job.

The difference between comprehensive and liability insurance is that comprehensive covers your car when it's damaged by something other than a collision, while liability coverage pays for other people's property damage and injuries when you cause an accident.

General liability insurance protects your business from damages it may cause, while workers' comp insurance helps protect your employees from work-related injuries or illnesses.

Is general liability insurance the same as employers liability? ›

In terms of the scope of what it encompasses, general liability insurance only covers a business from outside claims including customer injuries or negligence. It does not protect a business from employee-related negligence. Employers' liability insurance is for legal claims filed by injured workers.

The main difference, however, is that personal liability insurance covers for injuries or damages that the insured is personally held responsible for while general liability policy, which is also called commercial general liability insurance, pays for the costs incurred from bodily and property harm associated with a ...

Many employers offer some type of group healthcare insurance coverage to their employees. Plans will differ, and can be anything from basic coverage to a more comprehensive plan. Typically, employers will provide different plan options, allowing employees to select the type of insurance that best meets their needs.

Employer's liability insurance is a coverage that helps pay a business owner's costs related to a lawsuit resulting from an employee's work-related injury or illness. Without employer's liability insurance, you'd have to pay for these legal costs out of pocket, which can get very expensive.

In the United States, 49 of the 50 states must carry workers' compensation insurance. Texas is the only state that doesn't mandate its businesses to purchase this coverage. That said, it's safe to say that your business most likely needs workers' compensation to comply with state laws — and protect your employees.

General liability insurance may help cover repair or replacement costs if your business accidently damages someone else's property. You might also feel better and could have increased peace of mind knowing your business may be covered just in case an accident happens.

On average, Insureon customers pay $42 per month, or about $500 annually, for a $1 million general liability insurance policy. Additionally, 29% pay less than $30 per month, and 40% pay between $30 and $60 per month. Customers who need more coverage will likely pay a higher premium.

Under an occurrence policy, the occurrence of injury or damage is the trigger; liability will be covered under that policy if the injury or damage occurred during the policy period. Under a claims-made policy, the making of a claim triggers coverage.

What Is General Liability Coverage? Unlike commercial property coverage, general liability only provides coverage for damage and injuries your business causes to a third party. It does not cover damage to your business' own property or injuries to your employees.