General liability is for injuries to other people — customers, visitors, the public, other trades on a job site. Workers’ comp pays your injured employee’s medical care and lost wages regardless of fault; employer’s liability, its companion coverage, responds to certain lawsuits that arise from employee injuries. If you have employees and no comp policy, you are generally uninsured for their injuries and exposed to state penalties. Contractors have an extra layer: uninsured or unlicensed subcontractors and their workers can end up treated as yours.
Why general liability excludes employee injuries
Standard general liability policies contain an employer’s liability exclusion: bodily injury to an employee of the insured arising out of and in the course of employment is not covered, and neither are related claims by the employee’s spouse or family members for their own losses. The exclusion is not a gap so much as a boundary. The insurance system assigns employee injuries to workers’ compensation, and the two policies are designed not to overlap.
The definitions matter. Standard policies treat leased workers as employees for this purpose, and handle temporary workers from a staffing agency differently. Wording varies, and many policies — especially for contractors — add exclusions that go further than the standard form.
What covers employee injuries instead
- Workers’ compensationPays medical treatment, a portion of lost wages, disability benefits and death benefits for work-related injuries and illnesses, generally without anyone having to prove fault.
- Employer’s liabilityUsually Part Two of the same policy. Responds to lawsuits connected to employee injuries that fall outside the comp system — for example, certain claims by family members, or a third party who is sued by your employee and then sues you.
In California, workers’ comp is generally the employee’s exclusive remedy against the employer, which is the trade at the heart of the system: the employee gets benefits without proving fault, and the employer is generally protected from being sued in court for the injury. Exceptions exist, which is what employer’s liability is for. Workers’ comp insurance.
Is workers’ comp required in California?
Yes, for any employer with one or more employees, including part-time and temporary staff. There is no small-business exception. Coverage comes from an insurance policy, or, for qualifying employers with the financial capacity, state-approved self-insurance.
Operating without it is a serious matter in California. The state can issue stop orders and penalties, and an uninsured employer generally remains personally responsible for the cost of an injured employee’s claim. If you work alone with no employees, see workers’ comp with no employees; if you have even a part-time helper, see whether part-time employees need coverage.
What general liability does cover
General liability is about everyone who is not your employee:
- Customers and visitors injured at your premises.
- Property damage your work causes to someone else’s property.
- Other trades’ workers on a job site, who are not your employees — subject to the policy’s terms and any contractor-specific exclusions.
- Members of the public injured by your operations or your completed work.
More on what general liability covers and excludes.
Contractors, subcontractors and the “action over” problem
Construction is where the boundary between GL and comp gets tested. Three things to know:
- Uninsured subs can become your employees. California presumes a person who performs services for you is an employee, and an unlicensed subcontractor working under your license is generally treated as your employee. If they are injured, your comp policy — or your own pocket — is where the claim goes, and your auditor will add their pay to your payroll.
- Injured workers of other companies sue the general contractor. A sub’s employee who collects comp from their own employer may still sue the GC or property owner. That claim falls under the GC’s general liability, not comp.
- Many contractor GL policies exclude it anyway. Policies in the contractor market, particularly in surplus lines, often carry exclusions for injury to employees of contractors or subcontractors, or for “action over” claims. On those policies, an injured sub’s worker can be uncovered under both your comp and your GL.
The protection is administrative: collect certificates showing workers’ comp from every sub before they start, keep them current, and read your own GL for those exclusions. How I set up contractor programs.
What about indemnity agreements?
Contracts often require you to indemnify a client or GC for claims arising out of your work — including injuries to your own employees. If your employee sues the GC and the GC turns to you under that indemnity, your general liability may respond through its contractual liability coverage, if the contract qualifies and the policy has no exclusion that removes it. That is one of the narrow ways an employee’s injury can reach a GL policy, and it depends heavily on contract and policy wording. Send me the contract before you sign it.
Common questions
Does general liability cover injuries to my employees?
No. General liability policies generally exclude bodily injury to your own employees arising out of their employment. Workers’ compensation and employer’s liability cover those injuries.
What is employer’s liability insurance?
Coverage usually included as Part Two of a workers’ compensation policy. It responds to certain lawsuits connected to employee injuries that fall outside the workers’ comp benefit system.
Do I need workers’ comp in California if I have one employee?
Yes. California requires every employer with one or more employees to carry workers’ compensation, including for part-time and temporary staff.
If a subcontractor’s worker is hurt on my job, whose policy pays?
Usually the subcontractor’s workers’ comp pays the worker’s benefits. If the sub has no coverage or no license, the worker may be treated as your employee. A lawsuit by the worker against you as the GC would go to your general liability, subject to its exclusions.
Does general liability cover me, the owner, if I get hurt?
No. Your own injuries are not a liability claim. Owners are normally covered only by electing into a workers’ comp policy, or through disability or accident coverage.
General information about general liability and workers’ compensation in California as of October 2026, not legal advice. Employment classification and contract indemnity questions are legal questions; confirm your own situation with counsel. Coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.