General liability covers harm your business causes to other people and their property; workers’ compensation covers your own employees when they’re hurt on the job. They protect against completely different risks, which is why most Utah contractors need both — and why one is legally required to be licensed while the other is required the moment you have employees.
What general liability covers
General liability (GL) is your “oops, we damaged something or hurt someone” coverage. If your crew cracks a client’s marble floor, a tool falls and injures a passerby, or your work leads to third-party property damage, GL responds. It’s the foundation of contractor insurance — and in Utah, licensed contractors are now required to carry at least $1,000,000 per occurrence / $3,000,000 aggregate as of April 20, 2026 (verify current minimums with the Utah Division of Professional Licensing).
What workers’ compensation covers
Workers’ comp covers your employees when they’re injured doing their jobs — medical bills, lost wages, and rehabilitation — regardless of fault. In Utah, it’s required for any contractor with employees. If you have no employees, the state generally requires a workers’ comp waiver from the Utah Labor Commission instead.
The key difference, side by side
| General Liability | Workers’ Comp | |
| Who it protects | Third parties (clients, public) | Your employees |
| Covers | Bodily injury & property damage you cause | Employee work injuries & lost wages |
| Utah status | Required for licensure | Required if you have employees |
Why most contractors need both
The two coverages don’t overlap — they fill each other’s gaps. GL won’t pay when your own worker is hurt (that’s what workers’ comp is for), and workers’ comp won’t pay when you damage a client’s property (that’s GL). Carry only one and you’ve left a wide-open hole on the other side. For most Utah contractors with even one employee, both are non-negotiable — one for the law, one for the lawsuit.
Frequently asked questions
If it’s just me, do I need workers’ comp? Utah generally requires a waiver if you have no employees — but GL is still required to be licensed, and you may still want coverage for your own injuries.
Does general liability cover my employees’ injuries? No — GL excludes employee injuries. That’s exactly the gap workers’ comp fills.
Can I get both from one place? Yes — an independent agency can package both (and your other lines) and compare carriers for the best fit.
What changed in 2026? Utah raised the minimum GL limit for licensed contractors to $1M/$3M. Workers’ comp rules are unchanged.
Cover both sides of the risk
Don’t leave half your business exposed. Call (801) 676-7101 or request a review, and we’ll make sure your contractors insurance covers both your clients and your crew.
Wasatch Preferred — 9133 S Monroe Plaza Way, Suite B, Sandy, UT 84070 — (801) 676-7101
This article is for general educational purposes only and is not insurance or legal advice. Requirements vary and can change — always confirm current rules with Utah DOPL and a licensed insurance professional.