general liability

Does general liability cover employee injuries?

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Employee injuries

Employee injuries

Businesses need a lot of different insurance coverages in order to protect themselves from different risks. One common business insurance coverage is general liability insurance. (It’s a really important coverage for business owners.) While this coverage is common, that doesn’t mean people don’t have questions about it. One frequent question is this – does general liability insurance cover employee injuries? We’ll take a look.

Does general liability insurance cover employee injuries?

General liability can help protect your business against claims of third-party bodily injury or property damage. It can help cover things like medical expenses, lawsuits, settlements, and attorney fees. (Of course, the claim must be a covered one.) This is such a fundamental coverage that it’s typically included in a BOP (business owner’s policy), which is intended for small to medium-sized businesses.

To give an example, this is the coverage that could come into play if one of your customers slips and falls, injuring themselves on your premises. (People can sustain serious injury from a simple slip-and-fall. It can be a big deal.)

Anyways, lawsuits can be devastating to businesses, so it’s important to protect against them. But let’s get back to the question at hand – does general liability cover employee injuries?

To give a simple answer…no. Typically general liability insurance won’t cover an employee injury. That’s not what it does. So that might leave you with a follow-up question: what is an employer to do if an employee gets hurt on the job? The answer lies with worker’s comp insurance.

What does worker’s compensation insurance do?

Workers’ comp is the coverage that can help if an employee is injured on the job. So, though general liability won’t help if an employee takes a spill, slices their hand, or falls down a flight of stairs, that’s what workers’ comp is for. It can provide benefits if an employee is hurt or gets sick because of their job.

Workers’ compensation can cover the following if an employee is hurt on the job.

  • Medical expenses. If an employee is injured while on the job, workers’ comp can take care of their medical bills. It can also cover the cost of rehab if the employee needs it. Considering how expensive medical expenses can be, this could be very helpful.
  • Disability. If an employee is disabled because of a workplace injury, workers’ comp can help by paying disability benefits based on the severity and permanence of the disability.
  • Lost wages. Workers’ comp can also help by paying an employee a portion of the wages they lost if they need to take tine off to recover. That way the employee doesn’t have to worry about the bills piling up.
  • Death benefits. If the worst happens and an employee is killed on the job, workers’ comp can pay death benefits to their dependents.

So, you can see why workers’ comp is so important that Georgia may require you to carry it.

Quick tips to lower your workers’ comp costs.

Though workers’ comp is a crucial coverage for businesses, that doesn’t mean that you want to break the bank paying for it. Here are a few tips for lowering your workers’ comp costs.

  • Check your insurance policy. Make sure your job classifications and payroll information are accurate.
  • Invest in safety to reduce the chance of an accident. This can help you improve your claims history, which can help lower your costs.
  • Have a return-to-work program. A return-to-work program helps employees come back to work by providing them with tasks that have been modified according to what they’re able to do as they recover.
  • Make sure that employee injuries are reported promptly. This is really important.
  • Take the time to do some detective work and investigate the incident. You can discover ways to prevent the same incident from happening again in the future.
  • Train your employees. Be sure that you spend ample time teaching your employees to do their jobs safely. Make sure they know how to properly use the tools they’ll need to do their jobs.

So, there’s the answer to the question of whether general liability covers employee injuries. Most likely it will not, but workers’ comp is there for that reason. And whether you need workers’ comp insurance, general liability, or both, our team would be happy to help you get the right coverage for your business. Just fill out our online form or message us to get started with your business insurance quotes. Prefer to talk on the phone? No problem – just give us a call.

What’s a business owner’s policy and can I get one for my Atlanta business?

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A business owner's policy, or BOP, combines three different types of business insurance.

A business owner's policy, or BOP, combines three different types of insurance.

Have you ever seen one of those commercials for a hair care product that claims it’s shampoo and conditioner, all in one? Believe it or not, there’s an almost-equivalent for small-to-medium sized businesses when it comes to business insurance. It’s called a business owner’s policy, but since no cool coverage is complete without a nickname or acronym, it’s called a BOP. Basically, a BOP is handy to have because it combines several coverages into one convenient policy. You can get the coverage you need for your business in a simple, neat package – and it’s way better than 2-in-1 shampoo/conditioner.

Let’s dig deeper into this insurance mystery.

What does a business owner’s policy include?

There are three main coverages that a BOP can bundle together for your insurance convenience. Those coverages are…

1. Commercial property insurance.

What it does: Commercial property covers losses that happen because of common perils, like fire. It can cover you for your office equipment, furniture, inventory, machinery, raw materials, computers and other such essential business items. Plus, you know, the building itself.

2. General liability.

What it does: General liability is your “slip-and-fall” insurance. It covers your legal responsibility if your business causes harm to someone else, up to your policy’s limit. It will usually cover attorney fees for defending your business in court and the medical fees of anyone to whom your business caused bodily harm. It can also help in the event of a property damage claim.

3. Business interruption insurance.

What it does: Business interruption puts lost income back in your business’s pocket if you get hurt by a covered disaster that causes you to close temporarily. While property insurance helps you rebuild your business, BII helps you make sure that there’s still money in the bank when you have your grand reopening. It reimburses you for lost income.

Together, these coverages form the foundation of a small business insurance plan. Of course, they don’t cover every disaster or loss that could befall your business, so you may have to consider getting additional coverages if necessary.

Is my business eligible for a business owner’s policy?

Now, not every business is a candidate for a BOP. As we said before, BOPs are most appropriate for small to mid-sized businesses. Apart from that, there are a few checkmarks your business may need to meet before being stamped for BOP approval.

  • A physical location (whether it’s your home or premises – you may be able to insure a home-based business with a BOP)
  • Property that can be swiped (think product, cash, furniture, digital property, etc.)
  • Risk of lawsuits
  • Fewer than 100 minions employees
  • Fewer than $5 million in sales annually

Aside from these basic qualifications, there are a few other things that a carrier will consider before declaring you BOP-worthy. You may or may not be BOP-able depending on your type of business, the size of your main location, your revenue, and the class of business you are. It might seem like a lot of hoops to jump through, but it’s all in the interest of making that your business has the coverage you need.

How much will a BOP cost?

The premiums for BOPs depend, of course, on a few things. Your business’s eligibility factors play a part in your insurance rates. The financial stability of your business does, too. The building itself also gets considered, as do security features and fire hazards. The general rule of thumb for insurance is the more risk you have, the higher your rates. Insurance companies are highly allergic to risk, remember.

Pro tip: You might qualify for a discount if you have a security system. However, there are a few things you should know before hiring a company to install a commercial security system.

While insurance rates vary from business to business, the bottom line is that it’s important to make sure that you have enough coverage for your business and that there are no gaps in your insurance. That might mean adding some extra coverage to a business owner’s policy or forgoing a BOP entirely in favor of getting bigger policies.

BOPs are great when it comes to protecting small businesses. If you’re BOP-able, you get to enjoy commercial property, general liability, and business interruption insurance all bundled into one convenient policy. It is, however, important to consider that you may need to add coverages to your business owner’s policy. If you think your business might be a candidate for a BOP, congratulations! Insurance just got a whole lot easier.

Want to get a free quote on your business insurance? BOP or no BOP, we’d love to help you find the insurance your business needs to protect it from the risks you face every day. We’d love to help you save on said insurance, too. To reach one of our friendly agent-folk, all you have to do is fill out our online quote form or give us a call today. Then we can help you get started with getting your insurance!