General liability vs. workers' comp insurance
General liability insurance covers harm your work causes to other people — a client who trips over your cord, a neighbor's wall your ladder cracks. Workers' compensation covers your own crew when someone gets hurt on the job. One points outward, the other points inward, and neither one does the other's job.
If you've ever had a general contractor or property manager ask for "proof of GL and WC" before letting you on site, this is what they mean. Here's what each policy actually covers, how the two fit together, and why clients so often want to see both.
What general liability insurance covers
General liability (you'll hear "GL" or just "liability insurance") protects your business when someone outside your company gets hurt, or their property gets damaged, because of your work. The key phrase is third party — people who don't work for you. A few clearly made-up examples of the kind of thing GL is built for:
- A homeowner trips over your extension cord and breaks a wrist
- A fitting you installed fails overnight and floods the unit downstairs
- Your ladder slides and takes out a client's picture window
What workers' comp covers
Workers' compensation points the other direction: it covers your own people. When a worker is injured on the job, workers' comp typically helps pay their medical bills and replaces a portion of lost wages while they recover. It's often described as a trade — workers get benefits without having to prove anyone was at fault, and in most systems they give up the right to sue their employer over that injury.
Here's the honest hedge: who has to carry workers' comp, and who even counts as an employee, varies a lot by state, by business structure, and by how your crew is classified. Sole proprietors, partners, family members, and subcontractors are all treated differently from place to place. Don't assume — check with your state licensing body or your insurance agent.
Why one doesn't replace the other
The two policies don't overlap — they split the world between them. GL policies typically exclude injuries to your own employees, and workers' comp does nothing for the homeowner whose kitchen you flooded. Drop the wrong claim on the wrong policy and it simply won't respond.
A quick way to keep them straight:
- Someone outside your business gets hurt, or their property gets damaged → general liability
- Someone on your crew gets hurt doing the work → workers' comp
Why clients ask for proof of both
General contractors, property managers, and commercial clients commonly ask every sub to show a certificate of insurance (COI) listing both policies before work starts. Their worry is simple: if an uninsured worker gets hurt on their project, or your work damages a third party, the claim could climb the chain to them. Asking for proof of both closes that loop on paper.
What a given client asks for varies by contract and by state, and many contracts spell it out in their insurance section. In practice it usually means one COI showing GL and WC together — and a fresh copy every year when your policies renew, because a certificate showing an expired policy period is one of the fastest ways to get waved off a job site.
Proving both coverages without the paper chase
CompliCloud keeps both certificates in one dashboard and warns you before either expires, so proof of coverage is ready whenever a client asks.
Common questions
Does general liability cover my employees if they get hurt?
Generally no. GL policies typically exclude injuries to your own employees — that's exactly the gap workers' comp exists to fill. Check your own policy language or ask your agent if you're unsure how yours is written.
I work alone — do I still need workers' comp?
It depends on where you work and how your business is set up, and the rules vary widely by state and classification. Even where a solo operator isn't covered under a state program, some clients and general contractors still ask everyone on site to show workers' comp coverage or an exemption where one is available. Your state licensing body or insurance agent can give you a straight answer for your situation.
Can one certificate of insurance show both policies?
Yes. Standard COI forms have sections for several policy types, and general liability and workers' comp commonly appear together on a single certificate — which is why one COI is usually all a client asks for.
What happens when my policies renew?
Your COI lists policy periods, so once those dates pass, the old certificate no longer proves anything and clients will ask for a fresh one. Getting ahead of that beats scrambling — a reminder system (or CompliCloud quietly doing it for you) keeps renewals boring.
This guide is general information for US trades businesses, not legal or insurance advice. Requirements vary by state, locality and contract — confirm the specifics with your licensing body, your client’s contract, or your insurance agent.