Understanding The Difference Between Workers’ Comp and General Liability

Understanding The Difference Between Workers’ Comp and General Liability

July 16, 2018

Understanding The Difference Between Workers’ Comp and General Liability

The difficult waters of insurance can be a challenge for entrepreneurs who are starting their own business. Depending on certain state governments, some insurance policies are required, and others are beneficial but not necessarily required.  

 

Workers’ compensation insurance is one of the most important insurance policies for a business to invest in. In fact, aside from Texas, every state requires a company with employees to carry a workers’ comp policy. It’s also important for business owners to keep in mind that general liability insurance is highly beneficial in the occurrence one of your employees getting injured on the job.

 

Here at DJM Insurance Services, we have been writing contractors insurance policies for businesses in Arizona and many other states for over 15 years. So it’s safe to say we know a thing or two about workers’ comp and general liabilities. If you’re a small business owner, entrepreneur, or contractor who is looking to purchase either of these two policies, here’s what you should know.

 

General Liability

As the name suggests, general liability is a more generalized insurance policy that protects contractors against liability caused by injuries on a construction site. While it is not mandatory or required by law, it’s very important to carry this type of policy. In the construction business, general liability protects business owners from contractual liability, liability caused by an employee, liability from injuries or accidents, and much more.   

 

Workers’ Compensation

The main focus of workers’ comp insurance is to deal entirely with injuries on the job and the payments for the employee’s lost wages, rehabilitation services, and medical benefits. By having a workers’ comp policy, employees cannot sue their employers for coverage. Especially in the building and construction industry, workers’ comp is critical for employers to have due to the higher risk of injury.  

 

Our team of insurance specialists is able to write insurance policies that are perfect for your construction or building company and will fit within your budget. To learn more about our general liability insurance for contractors in Washington and many other states, browse our website or call us today at 800-763-0698.