Workers’ Comp vs. General Liability: What’s the Difference?

These policies protect against different kinds of claims. NAIC describes workers’ compensation as benefits for employees’ work-related injuries or illnesses. Its small-business guide says commercial general liability addresses bodily injury and damage to other people’s property, while employee work-injury claims are typically handled through workers’ compensation. A visitor’s injury and an employee’s injury therefore point to different coverage questions.

A general liability policy is not a substitute for required workers’ compensation. Review both policy forms, employee and third-party definitions, limits, exclusions, and state-specific requirements. Confirm a quote identifies workers’ compensation separately and reports the correct states, employees, payroll, and business operations. Claims involving both an employee and a third party can require coordination between policies. Review each policy’s other-insurance clauses and claim reporting instructions instead of assuming one policy handles the entire event.