Here’s a quick overview:
- Business insurance provides coverage for loss to those with an ownership stake in your company.
- This may include partners, members of your LLC or shareholders of your corporation.
- Depending on the policy, it can cover your business when a worker’s action results in a loss.
- It can also cover the cost of work-related injuries to your employees.
Question I own a small business, but I’m not a one-woman show. I’ve taken on business partners who own a piece of the company, and we recently hired two full-time employees. Does my business insurance policy extend coverage to these people?
Farmers Insurance® agent Mickey Manley II of Omaha, Nebraska, discusses who is covered under your policy.
Answer Your business policy can cover a wide range of people who have an interest in your company or perform work on its behalf. The coverage provided by your policy helps you protect yourself and others with an ownership stake in the company. In other words, a single business policy can cover the interests of all owners.
Business policies can cover the actions of your employees or anyone else authorized to work for your company. Suppose you own an auto repair shop, and a worker forgets to tighten the nuts on a car wheel. It falls off while the customer is driving home, causing him to lose control and hit a tree. A garage keeper policy can help cover the cost of damage to your customer’s car.
If you have business auto coverage, your policy covers drivers while they’re on company business, like making a delivery or getting supplies. Your drivers are covered when they’re driving a company vehicle — and optionally when driving their own.
In most states, you’re required to carry workers’ compensation insurance for your employees. This helps cover the cost of workplace injuries, including medical treatment and time off the job. The coverage not only helps you protect your business, but also helps provide rehabilitative care to employees so they can return to work.
The information contained in this page is provided for general informational purposes only. Read our editorial standards for Insurance Questions and other content. We make no representations or warranties of any kind, express or implied. This does not refer to any specific insurance policy and nothing herein is intended to replace or modify any terms in your actual policy.
Farmers may also provide information on topics that are not directly about insurance policies or coverage that we believe could be helpful to you. Information in such articles is not meant as professional advice, and any reliance you place on such information is therefore strictly at your own risk.
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