Do you have the right types of business insurance? Business insurance, like workers’ compensation and general liability, helps protect your business against certain types of losses. It’s important to understand that these two insurance types are not the same thing. General liability is typically not legally required. However, businesses that have employees must have a workers’ compensation insurance policy. Let’s take a look at the differences between these two policies.
Is General Liability the Same As Workers Comp
General liability and workers’ compensation are not the same thing. General liability financially protects your business if someone gets injured on your property or by one of your products. It helps pay for any property damage that occurs to your physical location through no fault of your own, and it helps pay for any damages caused to another person or business via your advertising campaigns. Workers compensation, on the other hand, pays for any job-related illnesses and injuries that your employees might experience while working a shift or as a result of their jobs.
General Liability Insurance
General liability insurance is not typically required. However, it’s a good idea for all businesses to have and maintain a policy. It helps financially protect your business if:
- A customer or visitor gets injured – If a customer or visitor to your physical location falls or gets hit by an object, like a forklift or falling box, your general liability insurance would pay for any medical expenses and additional losses.
- A customer’s property is damaged – If you’re working off-site at someone’s home or business and something in the business is damaged, your general liability insurance would pay to repair or replace the damaged items.
- One of your products is defective and causes injury – If one of your products has a defect and causes injury or damage to your customer or their property, your general liability helps pay for the damages.
- You’re accused of personal injury or advertising injury – if you’re accused of damaging a person’s reputation or harming their business via your advertising efforts, your general liability policy helps pay for any awarded damages.
Workers Compensation Insurance in Florida
Workers’ compensation in Florida is overseen by the Bureau of Compliance. Florida mandates that employers in a non-construction industry must have a workers’ compensation insurance policy if they employ four or more people. For construction companies, they must have a workers’ compensation insurance policy if they employ one or more people. If you happen to be in the agricultural industry, you must have a workers comp insurance policy if you employ 6 or more regular employees and 12 or more seasonal workers.
What Workers Compensation Covers
Workers compensation is designed to pay for employee injuries or illnesses that are related to or because of their job. It helps pay for any medical expenses, lost wages, legal fees and funeral costs, if the employee does not survive the injury or illness.
- Funeral Costs – If the employee does not survive the work-related injury or illness, workers comp helps pay for the funeral expenses.
- Legal Fees – If there are any legal fees associated with the workers’ compensation claim, the insurance policy helps pay them.
- Lost Wages – If the employee cannot work due to their injury or illness, workers’ compensation helps replace some of those lost wages.
- Medical Expenses – If the employee needs medical treatment, workers’ compensation helps pay any doctor’s bills. This includes hospital fees, ambulance fees, surgeries, doctor visits and even ongoing care.
What is a work-related injury or illness?
A work-related injury or illness is caused while the employee is working or as a result of the job. The injury can occur on the premises, on an off-site premises or in a vehicle, if the employee is driving for a job-related reason. Work-related injuries can also be claimed on workers comp if the employee is injured at a work-sponsored event or party. Workers comp can also cover things like carpal tunnel or tennis elbow, if the repetitive motion injuries are a result of performing their jobs.
There have even been instances where workers compensation has been used to pay for certain mental health services, if the mental health issue was a result of the job. For example, if an employee is chronically overworked and/or harassed, and they develop depression, PTSD or anxiety as a result, the mental health injury may be able to be claimed as workers comp.
Workers Compensation and General Liability Insurance with Fearnow in Florida
If your business needs general liability insurance or workers’ compensation insurance in Florida, our agents at Fearnow can help. We can explain the benefits of both workers’ compensation and general liability and help you find policies that meet your needs and your budget.
To learn more about workers’ compensation and general liability insurance and to get quotes on these business insurance policies, give us a call at 813-689-8878.