Commercial Property Insurance in Michigan

Commercial property insurance can help businesses in Michigan protect the physical assets and property they need to operate.

If a covered event happens, Michigan business owners may be able to submit a claim to help pay for repairs or replacements.

The following are a few examples of how commercial property insurance can help businesses:

• Structure fire: Commercial property insurance can help cover the cost of repairs and replacements if a fire causes damage at your business
• Water damage: Commercial property insurance can help pay to fix water damage resulting from leaks or burst pipes. Note: This does not include flood coverage (see below for more details).
• Theft or vandalism: Commercial property insurance can help cover property that is vandalized or stolen inside or within 100 feet of your business.

This insurance can cover a number of different accidents and emergencies, such as damage caused by fire, wind or water and man-made disasters like vandalism and theft.

Coverage can vary between different industries. It’s important to read your policy documents carefully to see exactly what is covered and excluded for your business.

Commercial property insurance can protect different types of property

Some of the physical assets which may be covered by commercial property insurance in Michigan include:

• Physical buildings
• Fixtures
• Flooring
• Windows
• Business equipment
• Furniture
• Inventory
• Business income

Types of Commercial Property insurance coverage

NEXT commercial property insurance policies in Michigan can include four basic types of coverage:

Goods, gear and inventory

Commercial property insurance can help cover repair and replacement costs if your furniture, equipment or inventory is affected by a covered event. This coverage is also known as business personal property insurance or BPP insurance.

Example: If a Detroit jewelry store is burglarized overnight and inventory is stolen, commercial property insurance can help pay to replace the stolen items.

Business income interruption

If you have to temporarily close your business due to fire, water damage or another covered event, your insurance can help cover lost income and other related expenses during that time. This is also known as business interruption insurance or business income insurance.

Example: If a Grand Rapids fitness studio clinic has to shut down for two weeks after a fire, commercial property insurance can help cover the income lost during the time it takes to make repairs.

Equipment breakdowns

This coverage can help with replacement or repair costs if your equipment is damaged due to a power surge or mechanical failure.

Example: If the electronic circuit control board in an Ann Arbor restaurant’s walk-in cooler malfunctions, commercial property insurance can help pay to fix it.

Buildings

Commercial property insurance can help pay for repairs to a building you own and use for business purposes. Business owners who lease or rent commercial space typically don’t need this coverage.

Example: If a windstorm damages the roof of a Lansing convenience store, commercial property insurance can help cover the costs to repair or replace roofing material.

Does Commercial Property insurance help pay for damage from natural disasters in Michigan?

NEXT commercial property insurance policies can help cover damage caused by wind, hail and fire. This coverage includes protections for related weather events, such as:

• Wildfires
• Windstorms
• Tornados

Some man-made disasters are also covered by NEXT commercial property insurance, including damage caused by riots and vandalism. Coverage for acts of terrorism is available as an optional add-on.

Floods and volcanic eruptions are not covered by NEXT commercial property insurance. Michigan businesses located in areas prone to flooding may want to consider getting coverage through the National Flood Insurance Program, which is the country’s leading source of flood insurance.¹

A number of different weather events can threaten Michigan businesses. The state’s disaster initiative Michigan Prepares is the number one resource for residents and businesses to stay informed about the latest natural threats in the local area.²

Is Commercial Property insurance required in Michigan?

In Michigan, businesses are not legally required to have commercial property insurance.

Michigan business owners may find, however, that they need this coverage to rent or purchase commercial property.

Even if you’re not required to have it, commercial property insurance can benefit your business in the following ways:

Cover property damage costs

With commercial property insurance, Michigan business owners can reduce the financial risk associated with their physical assets and may be able to get help covering certain costs if disaster strikes.

Survive business interruptions

Business income insurance can help cover lost income, moving and relocation costs and employee wages if you have to close temporarily after a covered incident.

Secure a loan

Banks and lenders may require proof of commercial property insurance as a condition of approval for a mortgage. Similarly, the Small Business Administration (SBA) requires businesses to have business hazard insurance on building used as collateral for their loans.

Lease agreement

Property owners in Michigan may ask you to carry commercial property insurance before they’ll agree to rent a commercial space to you. This requirement is often written into commercial leases.

What types of businesses might need Commercial Property insurance in Michigan?

Many businesses in Michigan can benefit from the financial protection offered by commercial property insurance and other kinds of business insurance.

Michigan business property insurance coverage can help protect your business assets if you operate your business from a physical location, such as an office space or a brick-and-mortar store.

Homeowner’s insurance coverage for home-based businesses is typically very limited, so commercial property insurance can help provide additional coverage if necessary.

Business owners may face certain risks that make commercial property coverage especially critical. For example, brick-and-mortar retail businesses often have a significant amount of inventory kept on-site. Commercial property insurance can help cover related costs if that inventory is damaged or stolen.

How much is Commercial Property insurance in Michigan?

The average insurance cost for commercial property in Michigan is affected by a number of factors, including:

• Work experience and industry
• Number of employees
• Business property location
• The total value of business property
• History of past insurance claims
• The selected policy limits

To find out how much coverage will cost for your business, start a free instant quote online.

Commercial property insurance costs $45 or less per month for 56% of our U.S. customers at NEXT.**

Learn more about commercial property insurance costs.

How NEXT Insurance helps Michigan businesses

NEXT provides Michigan commercial property insurance policies designed for small businesses and self-employed workers.

It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.

Start an  instant quote online today.

Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.

¹ National Flood Insurance Program

² Michigan Prepares

³ Employer Insurance Requirements

⁴ Your Guide to Automotive Insurance