Why Contractors Should Pair General Liability With Workers’ Compensation

Contractors face various financial risks on the job, and the consequences of being uninsured or underinsured can exceed the cost of any policy premium. Without general liability coverage and workers’ compensation insurance, a single accident may result in unexpected costs and potential legal exposure.

Understanding General Liability and Workers’ Compensation

General liability insurance is intended to help cover third-party claims of bodily injury, property damage or personal injury that may happen on your premises or as a result of your business operations. For example, if a client trips over your equipment and is injured, or if you accidentally damage a customer’s property, general liability can help cover the associated costs.

Workers’ compensation insurance can cover medical expenses, lost wages and rehabilitation costs of employees who are injured or become ill as a result of their work. In Florida, most contractors are required to carry workers’ compensation coverage if they have one or more employees.

How These Two Policies Work Together

Carrying both general liability and workers’ compensation can offer key advantages, such as:

• Broad financial protection—Since the two policies cover different parties, they complement each other rather than overlap. General liability insurance can cover incidents involving someone outside your company, such as a client or bystander, while workers’ compensation insurance can cover those affecting your employees.
• Legal compliance—Having both policies can help your business meet state regulations and avoid penalties.
• Client confidence—Clients may require proof of both policies before awarding contracts, as it can help demonstrate your commitment to safety and professionalism.

Find the Right Coverage

Coverage needs vary based on crew size, trade type and the contracts you pursue. Contact All City Bird Road Insurance today to discuss your insurance options and get a customized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.