Streetsmart insurance Blog
General liability insurance protects contractors from third party lawsuits. If a client sues you, your insurance policy will pay for your legal fees and compensatory damages up to your aggregate limit. Unfortunately, general liability insurance is not designed to protect contractors from employee lawsuits; if you want to protect your business from employee injury claims, you will need to purchase a separate insurance policy.
General liability insurance has two exclusions that allow your insurance company to deny employee claims – workers’ compensation and employers liability. The workers’ compensation exclusion clearly states that work related injuries should be covered by workers’ compensation insurance instead of a general liability policy. This exclusion protects contractors by separating third party lawsuits from employee lawsuits, which have entirely different consequences under the law.
The employers liability exclusion states that general liability insurance does not apply to employee injuries, whether they are work related or not. This exclusion protects contractors from employee claims that are not associated with their work. If your employee is injured at a job site when they are off duty, your general liability insurance company will not pay for your legal fees or pay compensatory damages to your employee.
How Can I Protect My Business From Employee Personal Injury Claims?Your general liability insurance policy will not cover employee personal injury claims, but there are other policies that can protect you from employee lawsuits. Workers’ compensation insurance protects policyholders from employee lawsuits that arise due to work related injuries. If your employees are injured while they are completing a job, workers’ compensation insurance will pay for their medical expenses and lost wages in addition to your liability expenses. Most employers are required to purchase workers’ compensation insurance; talk with your insurance agent to find the right amount of coverage for your business.
Street Smart Insurance is committed to providing affordable coverage. Whether you are looking for your first general liability insurance policy or you are shopping for a better price, our agents are ready to help. Call us at 732-462-8343 for a free quote!