If you’re a small business owner in Michigan, you should be aware that you are vital to the city’s economic well-being. Well over 90% of employers in Michigan are small businesses accounting 500 or fewer employees.
By protecting your business from certain risks, you’re also protecting Michigan’s economy, as well as protecting yourself and your valuable employees.
The best way to protect your establishment is to get a Michigan small business or liability insurance policy. Getting covered with liability insurance for your business is an investment. To prove our point, we are going to share a few things you have to know about business liability insurance in Michigan.
What Is Business Liability Insurance in Michigan?
Michigan business liability insurance is an insurance policy designed to protect your Michigan business from financial loss. Any financial loss can be devastating for any business, especially if they’re facing claims of damage or injury caused to others by either you or your employees.
Not all these policies are the same. Let’s take a look at what you can cover with liability insurance for small businesses in Michigan. But first, let’s introduce you to all the mandatory business insurance policies for Michigan businesses:
General Liability & Workers Comp Insurance for Small Business
While general liability insurance is required by the state for most business owners, workers’ compensation insurance for small businesses is mandatory.
General liability insurance coverage protects a small business from several risks. If a company causes direct or indirect damage to another party, it can often result in a lawsuit. General liability insurance helps small businesses pay for any damages.
General liability insurance policy’s coverage is very broad. This coverage pays for personal injuries involving visitors, customers, and sub-contractors, as well as property damage.
Another mandatory insurance policy for businesses with three or more people on staff is workers’ compensation insurance. This even applies if a business has part-time employees. Workers’ compensation plans protect your business by handling payments should any of your staff suffer an injury during employment.
Types of Liability Insurance for Small Businesses in Michigan
In Michigan, Business liability insurance is known by many names such as commercial liability insurance or commercial general liability insurance so be aware of these forms of insurance also.
The most typical business liability insurance covers a variety of expenses caused by claims of damage or injury you or your employees caused to others. This includes:
- Property damage – you and your employees might end up damaging someone else’s property. The costs of a potential lawsuit can easily force you to close your doors. Business liability insurance will help you cover all these costs.
- Bodily injury – unforeseen circumstances can lead to someone other than your employees getting hurt at your place of business. This insurance policy will help you take care of the costs associated with the lawsuit and claims.
- Personal injury – a number of acts can potentially cause damage to a person’s rights and reputation, including slander, copyright infringement, invasion of property or privacy, libel, wrongful eviction, false arrest, and more. If you or your employees cause any of these to other parties, you stand to lose a lot of cash.
- Advertising injury – liability insurance for small businesses can help you cover the costs of losses caused by your advertising.
- Legal Defense and Judgements – defending your case on the court of law also comes with a hefty bill. Liability insurance will help you cover these costs up to the coverage limit.
- Product liability insurance – don’t confuse this with a product warranty or guarantee. This insurance policy will protect your business from the claims if your product ends up causing injury or other damage to third parties.
General Liability Insurance for Small Businesses Doesn’t Cover All Types of Claims
There are some very specific types of claims a general liability insurance policy doesn’t cover. For instance, pollution liability, marine liability, and professional negligence or failure to perform professional duties all fall under this category.
If you think that there are some liability risks not covered by a general business liability insurance, you should take action to get appropriate specialty liability insurance plans.
What Is the Cheapest Small Business Liability Insurance in Michigan?
This is not the easiest question to answer. Why? Because there are a lot of factors to consider here. The most important question to ask yourself is how many risks you are facing. Maybe you can do very well with recommended and mandatory small business liability insurance.
But if you have a couple of hundred employees, it’s always better to be on the safe side and get wider coverage. This will, of course, dictate the price of your insurance policy. Keep in mind that when it comes to business liability insurance in Michigan, the cheapest is not always the best.
What Is a Standard Quote for General Liability Insurance for a Small Business?
While getting a quote for specific services is a straightforward process, asking for a quote for general liability insurance for a small business can be complex.
Insurance companies, such as Melton McFadden, often offer professional liability insurance quotes for small businesses. When you request a quote for general liability insurance for small businesses from Melton McFadden, you will soon get contacted by an insurance specialist.
Michigan Business Insurance Requirements
Michigan state law does not require business insurance, with the exception of worker’s compensation insurance. This applies to employers with one or more employees who work 35 or more hours a week, or those who employ 3 or more employees. Certain exemptions and exceptions apply for agricultural, domestic, and public employees. Learn more at Michigan’s Department of Labor Economic Opportunity. Michigan also requires all drivers to have auto insurance. If you need to use a car or truck for your small business, it is advisable to purchase adequate auto insurance.
Get the Best Small Business Insurance in Michigan With Melton Mcfadden
Thanks to years of experience in the insurance industry, you will get help and guidance to choose the best business liability insurance for your Michigan business. Melton McFadden has helped hundreds of businesses protect their assets and resources by delivering the most cost-efficient general liability insurance small business quotes.
Thanks to our unique approach, you will also benefit from a detailed assessment, and you will get the chance to build your own custom business insurance policy.
Contact us to get started today!