Workers Comp vs. GL

Does General Liability Cover Employee Injuries?

No. Employee injuries are explicitly excluded from general liability. They are covered by workers’ compensation, which is mandatory for most contractors in Ohio and almost every other state.

Or call (234) 231-8427 — Mon–Fri, 9 AM–5 PM EST

Why GL Doesn’t Pay for Employee Injuries

General liability covers third parties — homeowners, pedestrians, clients, anyone not on your payroll. Every standard GL policy contains an “Employer’s Liability” exclusion that specifically removes coverage for injuries to your own W-2 employees. If a framer falls off a ladder on your jobsite, GL will not pay a dollar. Workers’ compensation will. Learn more about general liability insurance for contractors or scroll down for the details on this question.

In Ohio, workers’ comp is administered by the Ohio Bureau of Workers’ Compensation (BWC), a state monopolistic fund. Every Ohio employer with one or more W-2 employees is required by law to carry coverage through the BWC. There is no private-market workers’ comp in Ohio; the state fund is the only option for in-state payroll. Most other states (Texas, California, Florida, Pennsylvania, etc.) use private-market workers’ comp carriers, and we quote it alongside GL the same way we do in Ohio for clients with out-of-state operations.

Workers’ comp covers four core categories of employee loss:

• Medical expenses — emergency room, surgery, rehab, prescriptions, ongoing care.
• Lost wages — typically about two-thirds of pre-injury wages during recovery.
• Disability benefits — permanent partial or permanent total awards for life-altering injuries.
• Death benefits — payouts to surviving spouses and children in fatal-injury cases.

There is a related coverage often confused with workers’ comp called Employer’s Liability. It comes packaged inside workers’ comp policies in most states and covers lawsuits brought by an injured employee against the employer (for example, claims of unsafe workplace conduct). Ohio’s monopolistic system handles this slightly differently — some contractors layer a Stop-Gap Employer’s Liability endorsement on their GL to fill that exact gap. We add it automatically on Ohio accounts where the carrier offers it.

What Workers’ Comp Costs — And How to Manage It

Workers’ comp premium is calculated per $100 of payroll, and rates vary wildly by trade. Ohio BWC rates for the most common contractor classes look like:

• Office/clerical: ~$0.20 per $100 of payroll
• Painting (interior): ~$3.50 per $100
• Carpentry / framing: ~$5.50–$8.00 per $100
• Plumbing / HVAC: ~$4.00–$6.00 per $100
• Electrical: ~$3.50–$5.50 per $100
• Roofing: ~$10.00–$18.00 per $100 (highest-rated trade)

That means a roofer with $250,000 in W-2 payroll can easily pay $25,000–$45,000/year in BWC premium — often more than every other line of insurance combined. Group rating, group retro, the BWC Drug-Free Workplace program, and aggressive return-to-work policies can reduce this premium 20–50%. We help contractors enroll in the right group rating program at every renewal.

1099 Subs — A Common Gray Area

A frequent source of confusion: if a 1099 subcontractor gets hurt on your jobsite, who pays?

• If the sub has their own workers’ comp policy — their carrier pays. You’re protected.
• If the sub has no workers’ comp — the state will treat them as your employee, and your workers’ comp policy (and your premium audit) will be charged.
• If you also have no workers’ comp — you personally pay the medical bills, lost wages, and any lawsuit that follows. This is the worst-case scenario.

The fix is permanent and free: collect a current workers’ comp certificate from every sub before they start work. Trade Safe provides a simple template and tracks expiration dates for our clients.

The Trade Safe Difference

Why Contractors Choose Trade Safe

You Might Also Find Helpful

• → GL vs Workers Comp vs Professional Liability
• → Exclusions in Contractor General Liability Policies
• → What General Liability Insurance Covers for Contractors

Get a Contractor GL Quote Today

An independent agent who shops dozens of A-rated carriers — and knows your trade inside and out.

Trade Safe Insurance — — Mon–Fri, 9 AM–5 PM EST