If you are a business owner, it is very likely that you have both types of insurance at your small business. Either you carry general liability insurance to protect yourself and your business against lawsuits, or you carry workers' compensation insurance to protect your employees and employers against injuries on the job. However, do you know what the difference is? Do you know what one covers and what the other covers? Here's a quick explanation of the difference and how it can affect your business in terms of both liability and benefits.
General Liability Insurance
General Liability is any type of liability insurance that protects business owners from lawsuits that don't involve them directly. For example, if you have employees, you might carry commercial insurance to protect yourself if an employee falls off a ladder and suffers an injury. This type of liability protection is typically very affordable for small businesses. However, if you have a product that creates a risk to clients or patrons and you don't carry commercial liability insurance, you could be sued by anyone who gets injured while using your product or as a result of having used your product.
Workers Compensation Insurance
Workers Compensation is a different scenario. Workers' compensation covers any injuries a worker may have on the job, regardless of whether they were caused by you or other third party. This type of insurance can cover lost wages, medical expenses and pain and suffering. It is very important for any business to carry this type of insurance because if an employee is injured on the job, no matter who is to blame, the injured employee may have to take out workers' compensation to make up for lost wages and medical expenses. This is particularly important if the worker was working for another company prior to being injured on the job.
All insurance companies require the business to carry a certain amount of liability coverage as part of the policy. However, this varies according to the state you live in. Each state has a different level of workers' compensation insurance protection. Some states require businesses to have the state's minimum liability limits; others allow businesses to choose which level of protection they need, and many employers are unaware of the difference in the state's minimum and maximum limits.
When you compare general liability vs. Workers compensation insurance, one of the biggest factors affecting your premium is the cost of medical expenses. If you have a large amount of medical expenses at your workplace, you are going to have to pay more for your liability insurance than a business owner who does not. For example, if you are involved in an accident that causes you to miss a day of work, you will have to pay for the medical expenses that occur during this time without any compensating you with workers' compensation benefits. You may also have to pay your own attorney fees or reimburse your own medical expenses from the insurance company.
If you run a small business, your options for general liability insurance are probably very limited, especially if you operate an online business. However, even if you only operate from home, you should still purchase a plan so that you are protected in the event that you get sued. In order to get the best rates on this type of insurance, however, you should contact an experienced and reliable workers' comp lawyer. He or she can tell you exactly which carriers offer the best deals on workers compensation insurance in your state. If you were injured at work, you may be entitled to additional compensation, depending on the type of injury and whether it was the result of your job.
General Liability Insurance
General Liability is any type of liability insurance that protects business owners from lawsuits that don't involve them directly. For example, if you have employees, you might carry commercial insurance to protect yourself if an employee falls off a ladder and suffers an injury. This type of liability protection is typically very affordable for small businesses. However, if you have a product that creates a risk to clients or patrons and you don't carry commercial liability insurance, you could be sued by anyone who gets injured while using your product or as a result of having used your product.
Workers Compensation Insurance
Workers Compensation is a different scenario. Workers' compensation covers any injuries a worker may have on the job, regardless of whether they were caused by you or other third party. This type of insurance can cover lost wages, medical expenses and pain and suffering. It is very important for any business to carry this type of insurance because if an employee is injured on the job, no matter who is to blame, the injured employee may have to take out workers' compensation to make up for lost wages and medical expenses. This is particularly important if the worker was working for another company prior to being injured on the job.
All insurance companies require the business to carry a certain amount of liability coverage as part of the policy. However, this varies according to the state you live in. Each state has a different level of workers' compensation insurance protection. Some states require businesses to have the state's minimum liability limits; others allow businesses to choose which level of protection they need, and many employers are unaware of the difference in the state's minimum and maximum limits.
When you compare general liability vs. Workers compensation insurance, one of the biggest factors affecting your premium is the cost of medical expenses. If you have a large amount of medical expenses at your workplace, you are going to have to pay more for your liability insurance than a business owner who does not. For example, if you are involved in an accident that causes you to miss a day of work, you will have to pay for the medical expenses that occur during this time without any compensating you with workers' compensation benefits. You may also have to pay your own attorney fees or reimburse your own medical expenses from the insurance company.
If you run a small business, your options for general liability insurance are probably very limited, especially if you operate an online business. However, even if you only operate from home, you should still purchase a plan so that you are protected in the event that you get sued. In order to get the best rates on this type of insurance, however, you should contact an experienced and reliable workers' comp lawyer. He or she can tell you exactly which carriers offer the best deals on workers compensation insurance in your state. If you were injured at work, you may be entitled to additional compensation, depending on the type of injury and whether it was the result of your job.
