Workers' Compensation or General Liability: Which Does a Marketing Agency Need First?

Start with General Liability Insurance First — Here's Why

If you run a marketing agency, the right move is to get general liability insurance first. This is because most marketing agencies operate without employees, especially when starting out, which means workers’ compensation insurance isn’t immediately needed. General liability, on the other hand, covers third-party risks that are part of your daily operations — like property damage to a client’s office or bodily injury during a meeting. These are common situations, and they're what general liability is designed for.

When you start receiving quotes, you’ll notice general liability is often the first coverage requested by clients or partners. It shows them you’re prepared if something goes wrong during your work — and it gives them peace of mind. Once you begin hiring full-time or part-time employees, then you'll need to consider workers’ compensation insurance as your next step.

What General Liability Covers for Your Marketing Agency

General liability insurance protects your marketing agency from claims of bodily injury or property damage caused during your business operations. For example, if a client slips and falls in your office or if your team accidentally damages a client’s property while setting up for a presentation, general liability can help cover the costs of legal defense and any settlements.

It also includes advertising injury coverage, which is especially important for marketing agencies. This part of the policy helps cover claims related to things like libel, slander, or copyright infringement. If someone accuses you of using their content without permission or running an ad that defames them, advertising injury coverage could be your first line of defense.

Because of these protections, general liability is the natural starting point for most marketing agencies. It’s also the first policy most clients request to see before they sign a contract.

When to Get Workers' Compensation Insurance

Workers’ compensation insurance becomes necessary once you have employees — even if they're part-time or freelance. If you hire someone, you're required by most states to provide this coverage. It ensures that if an employee is injured on the job, they receive medical treatment and wage replacement, and it also protects you from being sued directly by the employee for workplace injuries.

Marketing agencies often start as sole proprietorships or small teams with freelancers. Once you move beyond that model and begin hiring full-time staff, workers’ comp becomes mandatory in most states. Some states require coverage if you have even one employee, while others set a minimum number of employees before coverage is required.

Because the need for workers’ comp depends on your workforce size and your state’s laws, it's usually the second coverage you'll add to your insurance portfolio. You’ll also want to check with your state’s specific requirements to make sure you’re in compliance.

Who Asks for Proof of Coverage and Which Policy They Want

General liability is the first insurance coverage most clients and partners will ask to see. This is especially true when you’re working on-site at a client's office, event, or production space. They want to know you’re prepared for any accidents or issues that may arise during your work.

Freelancers, creative partners, and vendors may also request a certificate of insurance (COI) to confirm your general liability coverage. This COI is an ACORD 25 form that shows the coverage limits, carrier, and policy dates — but it doesn’t include the full policy terms or exclusions.

Once you hire employees, you’ll likely be asked by your state or potential clients to show your workers’ compensation coverage. It's a legal requirement in most states, and clients may want to confirm your employees are covered before you start work on-site at their locations.

How to Get General Liability and Workers’ Comp Coverage

Getting the right insurance coverage for your marketing agency is simple with a marketplace like CoRisk. You can start by comparing coverage from top-rated carriers in one application. Both general liability and workers’ compensation insurance are available from multiple carriers, and you can see the actual price for your business.

To get started, go to the quote page and begin your application. The process will ask about your business type, number of employees, and other details needed to get accurate quotes. You'll see multiple options to compare and can choose the coverage that fits your needs.

If you’re working with an agent, they can also access the marketplace and help manage your coverage and COIs from a single login. Either way, you’re getting coverage from a marketplace that works with many carriers to find the right fit for your business.

Why It Matters to Buy in the Right Order

Starting with general liability insurance helps you establish credibility with clients and protect your business from third-party claims. It also ensures you're prepared for the risks that come with your day-to-day work — whether you’re on a client’s site or managing online campaigns.

Waiting to get workers’ compensation until you actually have employees keeps you compliant with state laws and avoids unnecessary costs. It also allows you to focus on growing your business before you take on the added responsibility of employee coverage.

Buying in this order helps you manage your insurance costs more effectively and ensures you’re only paying for the coverage you need at each stage of your business growth. It also keeps your insurance strategy aligned with your business model and the requirements of the people you work with.