Staffing Insurance - Difference between General Liability and Workers' Compensation

General liability and workers' compensation insurance are two different types of insurance that offer different types of coverage. Here's an explanation of the difference between the two:

General Liability Insurance

General liability insurance provides coverage for a business in case of claims for bodily injury or property damage caused to a third party by the business. This type of insurance protects a business from financial losses that can occur as a result of accidents, injuries or damage caused to others by the business operations.

For example, if a customer slips and falls in your store and is injured, general liability insurance would cover the cost of medical expenses, legal fees and any damages that you may be required to pay as a result of the accident.

Workers' Compensation Insurance

Workers' compensation insurance provides coverage for employees who are injured or become ill due to their work. This type of insurance covers medical expenses, lost wages, and other related expenses that are incurred by an employee who is injured or becomes ill as a result of their job.

For example, if an employee falls off a ladder and is injured while performing work duties, workers' compensation insurance would cover the cost of medical treatment and lost wages.

The Key Differences between General Liability and Workers' Compensation Insurance

The main difference between general liability and workers' compensation insurance is that general liability insurance covers third-party claims, while workers' compensation insurance covers employee claims.

General liability insurance protects a business against claims for bodily injury or property damage caused to a third party by the business operations. It is designed to protect the business from lawsuits that can result in financial losses.

Workers' compensation insurance, on the other hand, provides coverage for employees who are injured or become ill due to their work. It is designed to protect employees and cover their medical expenses and lost wages, as well as other related expenses.

In summary, general liability insurance and workers' compensation insurance are both important types of insurance that businesses should have. General liability insurance covers third-party claims for bodily injury or property damage caused by the business, while workers' compensation insurance covers employee claims for injuries or illnesses that occur as a result of their work.