When an employee gets injured on the job, you will want your insurer to provide medical coverage and paid time off as soon as possible. This way, your employee can recover from serious injuries that reduce their ability to work. Workers’ compensation and general liability are provided to help fill the gap during their time off. While generally confused, general liability insurance can offer what workers’ compensation cannot.
The Difference Between Workers’ Compensation and General Liability Insurance
Workers’ compensation protects your business from workplace liabilities that can happen during an ordinary workday. General liability insurance, on the other hand, covers high-cost liabilities and goes beyond employee coverage.
What Does Workers’ Compensation Cover? Workers’ compensation is a state-mandated insurance coverage program designed to take care of employees who got injured on the job. Whenever an employee gets hurt on the job, they file a workers’ compensation claim to pay for their lost income and medical bills. This insurance coverage only applies to anyone employed by your company who was hurt while working. Unlike general liability insurance, it is state-regulated and doesn’t cover legal fees or property damage. It tends to be a no-fault insurance policy that helps reduce liabilities for injuries and illness and is required by your state. You can read more about workers’ compensation here.
Missed Wage Replacement
The benefits are based on the employee’s weekly earnings and are disbursed on a set schedule. It is two-thirds of the employee’s gross wages up to a maximum of $1215.27 per week with a minimum of $182.29.
According to California state law, if an employee passes away, the surviving family members can receive payments for the injuries and burial expenses. It is awarded to the survivors of the deceased, such as their spouses and other dependents.
If an employee becomes disabled for some time, workers’ compensation provides a substitute for lost wages. It is temporary and is determined by the work restrictions placed on the employee by their doctor.
What Does General Liability Insurance Cover?
General liability protects a business from mishaps that happen with customers or anyone who is legally on the property.
Slip and Fall Accidents
If customers or any visitors are injured on your property, they are covered.
If you or an employee accidentally damages someone else’s property, general liability insurance compensates them.
If your business practices injure someone through slander and libel, this insurance covers those problems.
General liability insurance will pay for legal fees, punitive damages, and property damage costs.
Expensive Employee Injuries
If an employee gets injured so badly that workers’ compensation simply isn’t enough, your general liability insurance can fill in the rest. It can also provide wage compensation for non-employees and cover medical bills for non-employees as well.
It is a good business practice to have both general liability insurance and workers’ compensation to protect you from unexpected accidents. Lawsuits and settlement demands can be astronomical, and without the right protection, they can ruin a business. General liability insurance covers every business liability that commonly happens. For less expected events, some insurance plans have additional add-on packages to cover your unique business needs.
Get Additional Information from a Well Informed Attorney
When you are planning ahead for your business’s success, you should consider the legalities of running a company. Many unplanned events can happen that can change everything for your organization. Get additional advice and help from an attorney who knows what businesses can expect when they receive settlement demands or are threatened with lawsuits.