Workers' Comp vs General Liability
Complete guide to understanding which insurance your California contracting business needs
Get a Free Quote — (858) 925-9555Quick Comparison
| Aspect | Workers' Compensation | General Liability |
|---|---|---|
| What It Covers | Employee injuries & illnesses on the job | Third-party injuries & property damage |
| California Required | Yes (if 1+ employee) | No, but required by most jobs |
| Typical Annual Cost | $1,500–$8,000/year | $400–$1,500/year |
| Claim Example | Employee injured on job site | Customer injured at job site |
| Coverage Limit | Varies by state & injury | Typically $1M–$2M |
What Each Insurance Covers
Workers' Compensation
Workers' compensation covers medical expenses and lost wages for employees injured or sickened by work. In California, it's mandatory if you have 1+ employee.
Covers:
- Medical treatment (doctor visits, surgery, therapy)
- Lost wages (typically 66% of average weekly wage)
- Permanent disability benefits
- Death benefits for employee families
- Vocational rehabilitation
Does NOT Cover:
- Third-party injuries (customer, visitor)
- Property damage
- Lawsuits from injured employees (covered by immunity)
General Liability
General liability covers injuries to customers, visitors, or property damage caused by your business operations. It's not legally required but is required by most job sites.
Covers:
- Customer/visitor injuries on your job site
- Property damage (damage to customer's property)
- Legal defense costs
- Medical payments (up to policy limit)
- Advertising injury claims
Does NOT Cover:
- Employee injuries (covered by workers' comp)
- Vehicle-related incidents (covered by commercial auto)
- Professional errors (covered by professional liability)
Cost Comparison by Trade
| Trade | Workers' Comp | General Liability | Combined |
|---|---|---|---|
| Electricians | $2,500–$4,500 | $600–$1,200 | $3,100–$5,700 |
| Plumbers | $2,200–$4,000 | $550–$1,100 | $2,750–$5,100 |
| Roofers | $4,000–$7,000 | $800–$1,500 | $4,800–$8,500 |
| HVAC Contractors | $2,500–$4,500 | $600–$1,200 | $3,100–$5,700 |
| General Contractors | $3,500–$6,000 | $700–$1,400 | $4,200–$7,400 |
Frequently Asked Questions
Can I get workers' comp and general liability together?
Yes. Most insurance brokers offer bundled packages combining both coverages. You can save 15-20% by bundling compared to buying individually.
Do sole proprietors need workers' compensation?
No. Sole proprietors are exempt from California's workers' comp requirement. However, if you hire even one employee, you must carry workers' comp immediately.
What if I don't have workers' comp in California?
You face serious penalties: $10,000+ fines, license suspension, criminal charges, and personal liability for employee injuries. California's Division of Workers' Compensation actively enforces this.
Does general liability cover my employees?
No. General liability specifically excludes employee injuries. That's why workers' compensation is required. General liability only covers third-party injuries.
How do I get a quote for both?
Contact Asena Insurance for a free quote. We shop 100+ carriers to find you the best rate on workers' comp and general liability bundled together.
Ready to Get Coverage?
Bundle & Save 15-20%
Get both workers' comp and general liability together and save on your annual premiums.
Call Now — (858) 925-9555