When it comes to protecting your business from financial loss, understanding the differences between general liability and workers' comp insurance is critical.
While both types of insurance provide important coverage, they also have key distinctions that can affect the amount of protection your business needs.
General liability insurance protects against financial losses caused by third-party claims and lawsuits. If you are in search of general liability and worker's compensation insurance, you may navigate to https://smythbiz.com/workers-compensation-rhode-island.
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This type of insurance covers a wide range of risks, including bodily injury, property damage, and personal and advertising injury. In addition, general liability insurance can also cover medical expenses, legal defense costs, and settlement payments.
What is Workers Comp Insurance?
Workers comp insurance is a type of insurance specifically designed to protect employers from the financial losses that can occur when an employee is injured or becomes ill due to their work.
This type of insurance typically covers medical expenses, lost wages, and death benefits. In addition, employers are usually required to carry workers comp insurance to comply with state and federal laws.
Comparing General Liability and Workers Comp Insurance
When comparing general liability and workers comp insurance, it’s important to consider the type of risks that each type of insurance covers.
General liability insurance covers claims from third-party lawsuits, while workers comp insurance covers injuries or illnesses suffered by employees.
Another difference between the two types of insurance is the amount of coverage they provide. General liability insurance typically provides more comprehensive coverage than workers comp insurance, as it covers a wider range of risks.
Finally, it’s important to consider the cost of each type of insurance. Generally speaking, workers comp insurance tends to be more expensive than general liability insurance.