Most businesses should have both general liability and workers’ compensation insurance. These seguro de negocio
policies help protect your business from different types of liability. General liability insurance protects your business from damages it may cause, while workers’ comp insurance helps protect your employees from work-related injuries or illnesses.
Let's take a closer look at the difference between general liability and workers compensation insurance:
Seguro general contra terceros
General liability insurance is a type of small business insurance that helps protect your business from claims that it caused:
- Property damage to someone else’s belongings
- Bodily injuries to clients visiting your business
This insurance is also known as el seguro de responsabilidad comercial
or commercial liability insurance. Be aware that this type of insurance covers third-party claims and does not protect your business property from damages or if your employees get hurt. To get coverage for your business property, you’ll need commercial property insurance
General liability insurance also doesn’t protect you against lawsuits for mistakes in the professional services you provide. To help cover the cost of your legal fees for these lawsuits, you’ll need professional liability insurance
Workers’ Compensation Insurance
Workers’ comp is important for protecting employees at your small business. It provides benefits to help cover medical bills for your employees if they get hurt or sick from their job. This coverage is important because it protects your employees’ finances, but it also helps reduce your liability for work-related accidents.
Most states require businesses to have workers’ comp insurance. However, laws vary, and each state has its own regulations that decide which businesses need coverage. For example, state laws in Nevada
require every business with at least one employee to carry workers’ comp.
With workers’ comp coverage, your employees and their beneficiaries can file a workers’ compensation claim for:
- Help paying medical expenses resulting from an injury or illness caused by their work.
- Disability benefits if the injury causes a partial or permanent disability.
- Partial replacement of lost wages if they take time away from work to recover.
- Death benefits to help cover the family’s funeral costs if your employee passes away in a work-related accident.
If your employee gets hurt on the job and receives workers’ comp benefits, they typically can’t sue their employer for negligence. They may, however, sue if they believe workers’ comp benefits don’t cover their loss. If that happens, employer’s liability insurance can help cover this type of lawsuit.
Who Needs Workers’ Compensation Insurance?
Each state has laws that decide which businesses need workers’ compensation insurance. Even if your business isn’t legally required to have workers’ comp coverage, it’s still a good idea to purchase it. Without coverage, you could be liable for a sick or injured employee and your employees won’t get benefits to help them recover.
Who Needs General Liability Insurance?
General liability insurance is a minimum coverage for most businesses. It’s highly recommended for small business owners and is especially important if your business:
- Works with customers or their property often
- Allows clients or customers to visit
- Has employees who work offsite
Do I Need Liability Insurance and Workers’ Comp?
Because they protect you from different types of claims, it’s important to have both general liability and workers' comp coverage.
General liability insurance helps protect your business from claims that it caused:
- Daños a la propiedad
- Lesiones corporales
Workers’ comp provides benefits to help your employees recover from a work-related injury or illness. It also limits your liability for these injuries and illnesses and makes sure you’re following your state laws.