What Is General Liability and Workers Comp Insurance?

Rena

Active member
General Liability and Workers Comp Insurance are terms that are often interchanged. In fact, you will be dealing with both when you are a general contractor. These two types of insurance coverages are important for any business that handles materials or products that may cause harm to others. If a product is improperly used or if it is used in an unsafe manner, a business owner can be held responsible.

When you are working with materials or products that have the potential to cause injury or illness, the contractor's general liability coverage will cover these issues. The workers compensation part of this policy is there to help a contractor pay for medical expenses and other out-of-pocket expenses that arise from a job site accident. Without workers comp insurance, these expenses would likely not be covered. But, when you have both types of coverage, you have some added protection. The following is a look at how both types of plans work.

When you hire workers, you need to protect them from injury on the job. This is why workers comp insurance is the best way to do this. It provides a safety net for those who perform physical work on jobsites. Without this type of coverage, a business owner would likely have to spend thousands of dollars on legal fees should an employee get hurt on the job. These fees are generally very expensive, which is why workers comp plans are available. When you have both types of coverage, you have more safety net to fall back on in the event of an accident.

General liability insurance will also cover you if there is damage caused to other people's property on the job site. In this case, it is usually called Professional Liability Coverage. You are able to provide this type of insurance in various forms depending on your business structure. Some need the policy to be filed and renewed on a yearly basis, while others only need it when claiming expenses for items that were lost or damaged on your property. This type of insurance can also provide financial assistance to businesses if they have employees that suffer accidents on the job.

There is a different type of insurance that is commonly referred to as workers compensation insurance. In this instance, you will need to file a claim for medical bills, lost wages, and pain and suffering. Workers comp insurance is often required by states and is one of the few types of general liability and workers comp plans that actually covers pain and suffering. When you purchase this type of insurance, you will generally find that it is less expensive than the other forms. This is because it provides you with the ability to make claims against an employer, which can help relieve some of the burden associated with medical costs and lost pay.

Both types of coverage are important. Although they can come at a cost, you cannot skimp on your business needs. Therefore, it is important that you find the insurance policy that best suits your needs. No matter which type you choose, you can be assured that it will provide you with protection against financial hardships, injury, and loss.​
 

Wisdom01

Valued Contributor
I think it's actually my first time of hearing such of insurance policy , because I have actually heard of such type of policy relating to disability that covers the workers health risk and other damages ,but it's actually my first time seeing something like workers compensation insurance company I think
 
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Deleted member 28127

Guest
I think it's actually my first time of hearing such of insurance policy , because I have actually heard of such type of policy relating to disability that covers the workers health risk and other damages ,but it's actually my first time seeing something like workers compensation insurance company I think
Most of the insurance companies are updating their laws from time to time due to work commitment because during handling cases they discover that some cases were not treated and as well by necessity they add the following rules to fulfill all requirements like workers compensation that is a new form of laws on these organizations.
 

Mandy96

Valued Contributor
I think general liability should be one of the most expensive policy plans there is, If not the number one on the list. I mean imagine the courage one could have knowing that there is coverage for every single damage made by you and you are not gonna be responsible for it
 
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