The big difference is that general liability covers injuries to the general public, whereas workers compensation covers injuries to employees. A painter spilling paint on a parked vehicle represents a general liability loss. A painter falling off a ladder represents a workers compensation loss. Initially, it might seem that workers compensation exposures are simple and clear cut. In reality, underwriting and pricing workers compensation risks are difficult and involved since the insurance carrier has little or no control over the benefits to be paid.
Underwriters evaluate a number of factors and exposures when writing workers compensation risks.
Employers can benefit from reviewing these factors as well. By identifying and addressing their exposures, businesses can take a proactive approach to reducing workers compensation losses. An examination of these factors helps to uncover the exposures that could increase the likelihood of worker injuries, thus broadening the underwriter's perspective of a company's risk potential for workers compensation losses. Q Our underwriters occasionally receive accounts in which the building limit requested by the insured is based on the insured furnishing much of the material, at reduced prices, and doing most of the construction work themselves. Quite often the limit arrived at is actually less than the evaluation derived from Marshall and Swift or Boeckh Appraisal.