General liability vs. workers' comp for contractors

Last reviewed Oct 11, 2026. General information from official state sources, not legal or insurance advice.

When you ask whether a contractor is "insured," there are really two different questions. General liability insurance covers harm the contractor causes to other people and their property. Workers' compensation covers the contractor's own workers when they're hurt on the job. A contractor can have one without the other, so it's worth checking both.

General liability: harm to you and your property

The Texas Department of Insurance describes commercial general liability (CGL) insurance as protection for business owners "against claims of liability for bodily injury, property damage, and personal and advertising injury." For a homeowner, that's the policy that responds if, for example, a contractor's mistake damages your house or a visitor is injured because of the work.

General liability has an important limit: it isn't meant for the contractor's own employees. In the same department's words, "CGL policies are not intended to provide coverage for workers' compensation or employer's liability."

Workers' compensation: the contractor's own workers

Injuries to employees on the job are a separate category. The National Association of Insurance Commissioners (NAIC) notes that employee claims for work-related injuries "typically are covered by workers' compensation insurance." Workers' comp generally pays for an injured worker's medical care and lost wages.

When states require each one

Rules differ by state. Here's how they compare in the states we cover in our paid data:

• California: "if a contractor has employees, they are required to carry workers' compensation insurance," according to the Contractors State License Board (CSLB). Roofers (C-39) must carry it whether or not they have employees. General liability isn't required for most contractors, but home improvement contractors must disclose in writing whether they carry it, and LLCs must carry it.
• Washington: general liability is required for contractor registration (see our Washington guide). Workers' comp is unusual: "Washington State does not allow private workers' compensation coverage," says the Department of Labor & Industries. Employers buy it from L&I.
• Oregon: general liability is required for every Construction Contractors Board license, at amounts that depend on the license type. The CCB says workers' comp "is required if your business has employees. Commercial contractors must have workers compensation insurance."
• Oklahoma: registered roofers need at least $500,000 in general liability for residential work. For workers' comp, the state's business guidance says most businesses must cover their employees with workers' compensation insurance. The exemption applies only to natural persons such as sole proprietors, not to corporations, partnerships or LLCs. Roofers must show coverage or an exemption affidavit to register.

Why homeowners should care about workers' comp

It's easy to assume that a worker's injury is the contractor's problem. Official guidance says it can become yours:

• California's CSLB: "If a worker is injured working on your property and the contractor doesn't have insurance, you could be financially liable to pay for injuries and rehabilitation."
• Washington's L&I: "Most homeowner policies do not cover workers… If you don't have workers' comp coverage, you could be legally liable for a worker's injury costs."

Oklahoma's roofing law goes the other way for roofing jobs: a homeowner can't be held liable in the workers' comp system. Even there, a roofer must show coverage or a valid exemption to register.

Which one does the state record show?

It depends on the state, and it matters when you read a license record:

• Washington, Oregon and Oklahoma records show the contractor's general liability policy.
• California's public license data shows workers' compensation, not general liability.

On our contractor pages, each insurance line says which kind it is. If a state shows only one type, ask the contractor for a certificate of insurance covering the other (see how to verify a certificate of insurance).

A quick checklist

1. Confirm the contractor's license or registration is active.
2. Ask for a certificate showing general liability, and workers' comp if they have workers.
3. Verify both with the insurers directly.
4. If the contractor says it's exempt from workers' comp, confirm the exemption is on file with the state, and that the exemption is allowed for that trade.