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.
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