📌 Key Takeaways
- Workers' Compensation Insurance: $500–$5000/year
- General Liability Insurance: $400–$2500/year
- You likely need both. Workers' comp is legally required once you hire employees. General liability i...
Side-by-Side Comparison
| Criteria | Workers' Compensation Insurance | General Liability Insurance |
|---|---|---|
| Who it protects | Your employees | Third parties (clients, vendors, public) |
| What it covers | Work-related injuries, illness, lost wages | Bodily injury, property damage, advertising injury |
| Average cost | $500 - $5,000/year | $400 - $2,500/year |
| Legally required? | Yes, in nearly all states (for employers) | Depends on state and industry |
| Claim example | Employee falls from a ladder at work | Client trips over your equipment |
| How cost is calculated | Payroll × class code rate | Revenue, industry, location |
⚖️ Our Verdict
You likely need both. Workers' comp is legally required once you hire employees. General liability is required by most clients and landlords. They cover completely different risks and are not interchangeable.
Workers' Compensation Insurance — Overview
Workers' compensation insurance covers medical expenses and lost wages for employees injured on the job. It's legally required in nearly every state for businesses with employees.
- Employee medical expenses from work injuries
- Lost wages during recovery
- Disability benefits
- Death benefits for dependents
- Employer liability protection
General Liability Insurance — Overview
General liability insurance protects your business from third-party claims of bodily injury, property damage, and advertising injury. It's the most fundamental coverage every business needs.
- Third-party bodily injury
- Third-party property damage
- Personal and advertising injury
- Medical payments
- Legal defense costs
Still Not Sure Which You Need?
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Get My Free Quote →Frequently Asked Questions
Workers' comp covers YOUR employees when they get injured on the job. General liability covers THIRD PARTIES (clients, visitors) injured by your business. They protect different groups of people.
You likely need both. Workers' comp is legally required once you hire employees. General liability is required by most clients and landlords. They cover completely different risks and are not interchangeable.
Workers' Compensation Insurance averages $500–$5000/year, while General Liability Insurance averages $400–$2500/year. Actual costs vary by your industry, location, and risk profile.
Not directly, but a Business Owner's Policy (BOP) bundles general liability with commercial property and business interruption insurance. For other combinations, you typically need separate policies — but many insurers offer multi-policy discounts of 10-15%.