Review your employee situation
Workers’ compensation requirements vary by state, ownership structure and other facts. Hiring your first employee, using part-time help or bringing family members into the business can change the review. Do not assume a small payroll or a 1099 form settles the question.
Tell us who works for you, what they do and where they work. Include owners and officers so any election or exclusion is understood. Ask how coverage works when employees travel or work in another state.
Keep it separate from garage liability
Workers’ compensation can help with covered medical costs and wage benefits after a work-related injury or illness. Garage liability is not a substitute for this protection. Employers liability addresses related exposures under its own terms.
Some states use state-run workers’ compensation arrangements. Ohio and North Dakota are important examples within our state directory. Your coverage review should account for those systems and any additional employers liability needs.
Prepare for payroll and classification questions
Separate sales, clerical, driving, repair and detailing duties accurately. The insurer may review payroll and classifications when the policy is issued and again through an audit. Keep clear payroll and subcontractor records.
Tell the agent when staffing or duties change. A mechanic who also makes deliveries and a salesperson who regularly uses inventory away from the lot may need more explanation than a job title alone provides.
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Sources & resources
Policy wording controls actual coverage.