Does General Liability Insurance Cover Employee Injuries?

Small businesses face surprises. A customer slips. A product fails. You’ve got General Liability Insurance (GLI) to handle those. But what about your workers? An employee falls off a ladder. Does General Liability Insurance cover employee injuries?

GLI, or Commercial General Liability, protects against common risks. It’s a go-to for lawsuits or accidents. However, employee injuries spark questions. Knowing what’s covered saves you stress and cash. So, let’s find out!

GLI Basics

Shield Customers and Visitors

GLI shines for third parties. A client trips in your shop. They need stitches. The policy pays their medical bills. For example, a café guest sprains an ankle. Summit Insurance covers the cost with GLI. That keeps you safe.

Covers Property Damage

It also fixes others’ stuff. Your worker dents a client’s car. GLI pays for repairs. A contractor ruins a rug? Handled. But when it comes to your team’s injuries, things change. Let’s see why.

Employee Injuries Aren’t Covered

Workers’ Comp Takes Over

GLI skips employee injuries. Your staffer slips in the warehouse. Their broken arm isn’t covered. Workers’ compensation steps in instead. It pays medical costs and lost wages. For instance, a store clerk falls. Workers’ comp, not GLI, handles the claim.

Why the Split?

GLI focuses on outsiders—customers, vendors, or passersby. Employee injuries fall under different rules. Canada’s workplace laws, like those in Alberta or BC, demand workers’ comp. Curious about local options? Check Summit Insurance Kelowna for special advice.

When GLI Might Touch Employee Issues

Third-Party Claims

Sometimes, employee mishaps spark outsider claims. A worker drops a box on a client’s foot. The client sues. GLI covers their injury, not your worker’s. It’s a fine line but key to know.

Subcontractor Gray Areas

Hired a freelancer? If they’re not your employee, GLI might cover their injury. But it’s tricky. Policies vary. Ask your provider. A pro, like an Insurance Broker Calgary, can clarify these details.

Why Workers’ Comp Is a Must

Covers Medical and More

Workers’ comp is built for staff. It pays hospital bills, rehab, and lost pay. An employee burns their hand at your diner? This coverage kicks in. Plus, it’s legally required in Canada for most businesses.

Protects Against Lawsuits

Injured workers might sue. Workers’ comp often stops that. It provides benefits without court fights. Pair it with GLI for full protection. Want to cover closures too? Check out Business Interruption Insurance for income losses.

Other Exclusions to Watch

Intentional Acts

GLI won’t touch deliberate harm. An employee fights a coworker? No coverage. It’s for accidents only. A shelf falls by mistake? That’s covered. Know the difference to avoid surprises.

Professional Errors

Mistakes in your work aren’t included. A consultant gives bad advice. The client sues. GLI skips this. Need coverage? Look into Errors and Omissions insurance. For related terms, see What Is A Self-Insured Retention?.

Do You Need Both GLI and Workers’ Comp?

Yes, They Team Up

GLI and workers’ comp cover different risks. GLI handles customers and property. Workers’ comp protects your team. A retail shop needs both. One slip by a client and one fall by a worker? You’re covered on both fronts.

Renting? Add More

If you lease your space, consider extra layers. Tenant Insurance protects your business belongings and liability as a renter. 

How to Get the Right Coverage

Shop Smart

Find insurers who know small businesses. Compare GLI and workers’ comp plans. Ask about limits and costs. A good provider provides personalized coverage for your risks.

Read the Fine Print

Check exclusions in both policies. GLI skips employee injuries and cyber risks. Workers’ comp might miss freelancers. Know the gaps. Add policies if needed.

Update Yearly

Your business evolves. New staff or locations change risks. Review coverage annually. A growing café needs more than a startup. Stay protected as you scale.

Final Thoughts

Does General Liability Insurance cover employee injuries? General Liability Insurance doesn’t cover employee injuries. It’s built for customers, visitors, and property damage. Workers’ compensation handles your team’s medical bills and wages. Both are vital for Canadian small businesses. Missing either leaves you exposed. Exclusions like intentional acts or professional errors add twists, so read your policy.

Don’t risk your business. Grab GLI and workers’ comp to stay safe. They’re affordable and keep you running. Ready to protect your shop or office? Reach out today. Let’s find coverage that fits your needs.