One thing that Michigan’s more than 900,000 small businesses probably have in common is business insurance.1
Business insurance in Michigan can protect your company and your employees. It’s designed to provide a financial safety net that can keep your company going when unexpected events occur, such as:
NEXT is 100% dedicated to small business and insures more than 1,300 types of small businesses and self-employed workers. We make it easy for you to get the right coverage at the right price and purchase your policy online in less than 10 minutes.*
Michigan business insurance is often sold in customized packages with several different types of coverage, which insurance companies call policies. Each type of coverage can provide assistance when different kinds of accidents happen.
For example, Michigan general liability insurance can help protect against financial losses if you’re accused of causing bodily injury to a non-employee or damaging their property. Whereas, if one of your employees gets hurt on the job, you would need workers’ compensation coverage.
Other types of business insurance coverage purchased in the state include Michigan professional liability coverage, commercial auto insurance and Michigan commercial property insurance.
Whether you’ll want some or all of these types of coverage will depend on your business operations. Every small business is unique and has different business insurance needs.
Michigan general liability insurance, which may also be called commercial general liability, can protect almost all businesses in the state.
This type of insurance can help pay for expenses if your business is accused of injuring a non-employee or causing property damage. It can also help pay legal costs fees if someone sues your business for such claims.
Here’s how general liability coverage could help a small business owner avoid big problems:
A customer slips and falls at a Detroit retail shop and requires medical attention. General liability insurance could help the store pay for medical bills, as well as lawyer fees, court costs and damages if a lawsuit is filed.
Construction and cleaning companies in Michigan may want an optional add-on called tools and equipment coverage. This type of insurance can help to repair or replace business gear that’s lost, stolen or damaged outside of wear and tear.
Michigan law requires most businesses with employees to carry workers’ compensation insurance. This type of coverage is designed to help pay for work-related injuries to employees, including medical costs and lost wages.
For example, an employee of a Grand Rapids fast-casual restaurant falls from a ladder, breaks an ankle and needs nine weeks to recover. Worker’s compensation coverage could help the business pay the employee’s medical expenses and help cover lost wages while they’re unable to work.
If you drive for business reasons, your Michigan company needs commercial auto insurance. This kind of coverage can help pay for medical bills and property damage if someone has an accident in a company car.
For instance, an employee at a Lansing cleaning company hits a guardrail en route to a client’s house and requires an overnight hospital stay. Commercial auto insurance could help cover the worker’s medical bills and damages to the vehicle.
It’s important to note that personal auto policies won’t cover accidents that happen while driving for business, even if you’re driving your personal vehicle.
If your company asks employees to drive their own cars or rents vehicles for business, you’ll want an optional add-on called hired and non-owned auto insurance. It can help pay for accidents that happen in vehicles not titled to your company.
Michigan commercial property insurance can help pay for damaged or destroyed business property after a covered event, such as water, fire or wind damage.
For example, a sprinkler malfunction at a Ypsilanti real estate agency ruins the owner’s office damaging the furniture and a computer. Commercial property coverage could help pay to clean up the mess and purchase a new desk, chair and laptop.
It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Some locations might not cover flood or hurricane damage.
Accusations of poor work, incomplete projects and missed deadlines can hurt your company’s bottom line and reputation.
Michigan professional liability insurance can provide coverage for these situations. Also known as E&O or errors and omissions coverage, it can help pay for damages if someone says your professional negligence caused them financial loss or sues you.
An apartment complex developer alleges that an Ann Arbor painting company failed to properly prime and paint the units, which led to lost sales and revenue. E&O insurance could help the painters pay for damages and defend itself in court if the developer sued.
Business insurance costs in Michigan are not one-size-fits-all. That’s because every small company is different and has unique insurance requirements. For example, a professional services company will need different kinds of policies than an auto body repair shop.
Here are some of the factors that will affect how much you’ll pay for your coverage:
Industry-related hazards affect how much your company will pay for coverage. For example, a construction company in Muskegon, whose work involves the risk of injuries or property damage, will pay more for coverage than a desk-based professional services worker in Bay City.
As you add different types of coverage to your insurance package, the price you pay will increase. You will also pay more if you choose higher policy limits (which provide more protection) for your coverage, as opposed to the minimum policy requirements.
Michigan has more complex workers’ comp laws than many states. But generally, companies with higher employee counts pay more per month, so make sure you have correct numbers before you request a quote.
The best way to explore coverage options and find out how much you’ll pay for a business insurance policy is to get a free instant quote from NEXT.
You can also use our insurance calculators for a general estimate of insurance costs in Michigan:
We offer a fast and easy way for small business owners to get a business insurance quote online, purchase coverage and instantly share a certificate of insurance. The entire process usually takes less than 10 minutes.
You can also chat with our U.S.–based NEXT licensed insurance agents if you need help or have questions.
Learn more about insurance options in the states where you work.