General liability insurance is designed to cover basic accidents that may occur on any business’ property across industries and locations. This includes bodily injury someone may suffer, such as if a customer slips and falls in your retail store.
But what happens when employees are injured? Are they covered under general liability insurance?
In short, employees are not generally covered under general liability insurance. General liability insurance is geared to cover third party claims such as clients and those outside of the business. If an employee is injured on the job, their medical bills should instead be covered under workers compensation. Workers compensation insurance provides coverage specifically for employees including medical bills, wage replacement, disability benefits and more.
What Insurance Covers Employee Injuries Off the Clock?
Say one of your restaurant employees has clocked out and is waiting on their food to take home from the back. While leaving the kitchen, they slip and fall, twisting their ankle. Is this injury covered under general liability insurance or workers compensation insurance?
There is some gray area here, but most of the time, this injury will still be covered under workers compensation. Workers compensation may cover employees both on or off the clock if they are currently employed and on the business’ property.
What Injuries Does General Liability Insurance Cover?
The third-party injuries under general liability insurance may include nearly every injury that is caused by non-professional negligence. Non-professional negligence refers to accidents not involving a professional service. For example, if someone slips on a wet floor in your restaurant, their injury and subsequent medical bills may be covered under general liability insurance. General liability also protects the business from legal expenses regarding such accidents.
Is a Parking Lot Considered Business Property?
When it comes to general liability, a parking lot is typically considered business property. This means that if someone falls in your parking lot, such as if they trip on stairs or slide on ice during the winter, their injury may still be covered under your business’ general liability insurance policy.
Employers should double check both their general liability and workers compensation policies to make sure that everyone stepping foot onto their business’ property will be covered in case of an accident. If an accident does occur, action to receive medical attention must be sought immediately and employers should contact their insurance agent as soon as possible.
Also Read: Workers’ Compensation for Long-Term Exposure Injuries
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