Jump ahead to learn:

• Is E&O insurance coverage in Michigan required?
• How much does Professional Liability insurance in Michigan cost?
• What’s covered by Michigan E&O insurance?
• What types of businesses could benefit from Professional Liability in Michigan?
• Are Professional Liability insurance and E&O insurance the same?
• How NEXT helps protect Michigan business owners

Is Michigan Errors and Omissions insurance required?

Professional liability insurance in Michigan, also called errors and omissions insurance (E&O), may be a necessity for your business for:

• Professional licenses and permits. The city where you work may require professional liability insurance for professional certifications, depending on your industry.
• Getting more work. Some clients, including state and local governments, may require a certificate of insurance (COI) before they’ll work with you, especially on high-cost projects. This proof of insurance may mandate professional liability or E&O.
• Financial protection. Michigan small businesses with an errors and omissions policy could get financial help if they’re accused of professional negligence or if they make a professional mistake that costs a client money.

For example, architects and engineers working on Michigan State Housing Development Authority (MSHDA) projects are required to maintain E&O insurance equal to at least $1 million or 10% of the construction contract, whichever exceeds. They must also list MSHDA as an additional insured.

While professional liability is not required for all businesses, it offers a layer of protection that could be an asset to any business owner.

How much does Professional Liability insurance in Michigan cost?

The price you’ll pay for Michigan professional liability insurance/E&O insurance varies depending on many factors, including:

• The type of work that you do
• Your work experience
• The location(s) where you operate
• How many employees you have
• How high you set your insurance deductibles, policy limits and coverage limits
• Your insurance claims history

NEXT makes it fast and affordable to get MI professional liability insurance or E&O insurance online in about 10 minutes.

Learn more about the cost of professional liability insurance.

What’s covered by Michigan E&O insurance?

Michigan professional liability coverage can help cover some business costs if:

• You or one of your employees make a professional mistake that costs a client money.
• Your business faces legal accusations of professional negligence such as wrongdoing or inaction that causes a client financial harm.
• You make a mistake, such as a missed deadline for a client, that results in their financial peril.
• Your business is accused of misrepresentation of services.

Here are some examples of how your insurance company could help with risk management:

• A Detroit financial advisor overlooks an important tax deduction for a client that results in a higher tax bill. The client files a claim for financial losses. Professional liability insurance could help cover the cost of defending the claim and help pay for court settlements.**
• A client’s insurance claim is denied after storm damage to their building. The client accuses their Grand Rapids-based insurance agent of not clearly explaining that wind damage required an optional policy add-on. Errors and omissions insurance could help pay for legal defense and related costs.
• A residential client sues their Ann Arbor architect, claiming their site plan led to poor drainage and basement flooding. They seek damages for repairs and diminished property value. Professional liability insurance could help with legal fees and expenses.

What types of businesses could benefit from Professional Liability in Michigan?

Many small, medium and large businesses in many industries could benefit from E&O/professional liability insurance policy — a type of Michigan state business insurance.

Liability coverage is usually sought after by:

• Real estate agents
• Insurance agents
• Consultants
• Accountants, tax preparers and financial services
• Engineers
• Architects
• Construction/contractors
• Most professional services

Are Professional Liability insurance and E&O insurance the same?

Professional liability insurance and errors and omissions insurance, or E&O, refer to the same business insurance coverage. The names can be used interchangeably. But depending on your industry, one term may be favored over the other.

E&O is usually used by:

• Insurance professionals
• Real estate agents
• Property managers
• Construction/contractors

Professional liability insurance is usually used by:

• Accountants, tax preparers and financial services
• Architects
• Engineers
• Legal services

How NEXT helps protect Michigan business owners

NEXT makes it fast, easy and affordable to protect your Michigan business — and you can do it all online.

1. We’ll ask a few questions about your business and give you a quote. You select your coverage options and buy your policy in about 10 minutes.
2. Your certificate of insurance (COI) will be available immediately at no extra cost, and you can access your policy 24/7 via web or mobile app.
3. If you have questions, our licensed, U.S.-based insurance professionals are ready to help.

Start a free quote with NEXT.

Resources for Michigan business owners

• Michigan Department of State
• Department of Insurance and Financial Services
• Michigan Department of Treasury
• Michigan Licensing and Regulatory Affairs
• Michigan Small Business Development Center