General Liability vs Workers' Compensation Insurance

Insurance coverage comes in all shapes and sizes depending on numerous factors revolving around your business. Two of the most common types of coverage are general liability and workers' compensation insurance. Learn more about these two forms of coverage and their distinct roles providing coverage for you and your business.

What is General Liability Insurance?

Also known as business liability insurance, general liability covers damages or injuries caused to clients, third party-individuals, businesses, or strangers during business operations. This insurance is meant to cover damages and injuries to third parties (non-employees) such as:

  • Bodily Injury
  • Property Damage
  • Completed Product Claims
  • Reputation Injury (Slander/Defamation)
  • Copyright Infringement

General liability could help you pay for your defense costs, as well as claims that could otherwise result in costly legal fees, settlements, or other financial losses.

What is Workers' Compensation?

As the name suggests, this insurance coverage helps protect your workers, but this protection can also help you - the employer - as well. Workers' comp insurance is designed to protect your employees in the event they are injured or become ill as a result of their work. Benefits include medical care, temporary disability, permanent disability, supplemental job displacement, and death benefits. Providing this insurance is not only required in most states but also gives your employees financial support for injuries and illnesses resulting from work you do, with no need to sue you or your business for it.

What's the Difference Between the Two?

The critical difference between these two types of coverage lies in external vs. internal protection.

While General Liability helps to cover any damages caused by your company to external entities, like clients, other businesses, etc., Workers' Compensation helps protect your company from damage to internal entities, i.e., your employees. In addition, both types of coverage costs also vary depending on a variety of business factors, such as:

  • The type of business you own
  • Length of operation 
  • Number of employees 
  • Location
  • Policy details
  • Your previous claims history 

Most contractor and construction businesses require General Liability or Workers' Compensation coverage. To reaffirm, not having either of these types of coverage can result in your or your business suffering from costly financial losses caused by claim fees or, even worse, federal legal fees that lead to even further consequences, like possibly losing your business. Avoid the headache and get your free quote today from Aegis and get coverage for all corners of your business.




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40169 Truckee Airport Rd. Ste #203
Truckee, California 96161
Phone (800) 579-6369
Fax (530) 582-6007
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