Does Cheap General Liability Insurance For Contractors Include Workers Compensation?
It doesn’t matter whether it’s expensive or cheap, General Liability Insurance for Contractors will only cover claims made against you by your client, or a third party. Workers Compensation is an additional policy you will need to protect yourself and your employees.
Many business owners are unsure about where cover given by a General Contractors General Liability Insurance policy ends and where Workers Compensation insurance begins. Let’s take a look at these policies to better understand their benefits and scope.
The other question we get asked by business owners is, Is cheap General Liability Insurance for contractors any good? We’ll get to that later.
What Is General Liability Insurance?
General Liability Insurance protects your business against claims made by your client or a third party. Liability Insurance is limited as it doesn’t cover for some risks, such as employee injuries.
Contractors General Liability Insurance coverage takes care of non-employee (third-party) losses like:
- Advertising injuries
- Damage on another person’s property
- Injuries that someone sustains while in your business premise
What Is Workers Compensation Insurance?
So, now we know what General Liability Insurance covers, let’s look at workers compensation. This policy protects you the contractor, and your employees from accident or injury sustained on the worksite, and will cover:
- Medical and recovery costs related to an occupational injury
- Supporting dependents and paying for funeral expenses in the event of a fatal work injury
- Replacement of wages when an employee cannot work because of an injury or illness
- Liability expenses when your company is taken to court over a work injury
General Liability Insurance vs. Workers Compensation
The similarities include:
- Both policies are essential for contractors
If you are a contractor, having General Contractor Insurance helps you cover lawsuits where there has been an injury to non-employee. At the same time, signing up for Workers Compensation covers injuries that you or the employees may sustain while working.
- Both policies deal with physical injuries
If your client breaks an arm while on your property and they sue you, your General Liability policy will cushion you from the associated costs. On the other hand, Workers Compensation steps in when an employee breaks their arm while working.
While Workers Compensation insurance and a General Contractor General Liability policy have some similarities, there are also some key differences to remember.
The differences include:
- Workers Compensation differs from state to state
Since state laws govern the policy, the policy’s conditions vary widely. Some states require you to sign up when you have a certain number of employees, while others want you to have it even if you don’t have any employees. Other laws are based on whether the worker is on a full-time or part-time basis.
- General Liability is often mandatory
Irrespective of your business’s size, you should have General Contractors Insurance coverage. After all, you can’t predict when a third party will slip at your doorstep and sue you for the accident. In addition, many commercial projects will not appoint contractors without insurance. So, if you want to get the jobs that will grow your business, you need General Liability Insurance.
It Takes Both Policies to Safeguard Your Business
Before settling for an insurance plan, it’s important to know what your business needs in terms of cover. It’s safe to say that construction companies need both Liability Coverage and Workers Compensation.
You are likely to need both Workers Compensation and General Contractor Insurance to run your company stress-free. One cover protects you from third-party injuries while the other takes care of your employees.
Cheap Insurance vs. Expensive Insurance
So, is cheap General Liability Insurance for Contractors worth anything? Or should you be paying high rates to get the best cover?
Many business owners look for cheap General Liability Insurance for Contractors because they want to keep their running costs low. Others do it because they can see the benefits of paying less for insurance that is just as good as an expensive policy.
The answer is, Yes. You can get good cheap insurance — but, only if you buy your insurance policies from an experienced insurance company that works with A-rated carriers. Contractors Liability specializes in providing the best rates for construction companies and contractors. Call us for a free 5-minute quote on (866) 225-1950 or 888-676-0923. Cheap General Liability Insurance for contractors plus Workers Compensation is just a call away.