Learn about business insurance requirements and the most common policies for general contractors in Michigan.
Depending on the specifics of your work, general contractors may be required to hold several different types of business insurance. For example, if your business owns a vehicle, you likely need to purchase commercial auto insurance to meet state requirements.
If you have a physical location with a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by general contractors in Michigan, general liability insurance can protect your business from expenses associated with common mishaps, such as customer property damage and injuries.
To meet state requirements in Michigan, general contractors with employees must provide workers’ compensation insurance, which covers lost wages and medical bills for work injuries.
General contractors may need different types of insurance depending on the work they do and their client contracts. In Michigan, general contractors often buy these policies.
General liability insurance is the foundation of a general contractor’s protection. It covers damage to client property, as well as client injuries. Most commercial leases require you to have this coverage.
Bundle this policy with commercial property insurance in a business owner’s policy (BOP) for savings. Adding commercial umbrella insurance can boost your coverage on general liability insurance and other policies.
If you own a construction or home improvement business in Michigan that has at least three employees or at least one employee who works a minimum of 35 hours a week for 13 weeks per year, your business is required to carry workers’ compensation insurance.
Workers’ compensation can help pay for medical bills and lost wages when an employee is injured on the job.
Commercial auto insurance protects vehicles owned by your general contracting company. It covers property damage and medical bills in an accident, along with vehicle theft, weather damage, and vandalism.
Professional liability insurance provides protection when a general contractor is sued for a professional mistake, such as missing a deadline on a construction project. This policy is also called errors and omissions insurance (E&O).
Surety bonds guarantee reimbursement for the client if a general contractor is unable to fulfill the terms of a contract. Common types of surety bonds include bid bonds, performance bonds, and payment bonds.
According to an analysis of Insureon applications, the typical general contractor in Michigan can expect to pay more than the national median for some types of business insurance, and less for others.
For example, the median annual cost of a business owner's policy for general contractors in Michigan is $1,900, more than the national median of $1,000.
On the other hand, the median annual premium for workers’ comp is $1,974, significantly less than the national median of $3,682.
Insureon’s industry-leading technology helps general contractors in Michigan save time and money shopping for insurance by comparing policies from top U.S. providers.
Start a free online application to review quotes for the policies that best fit your business. Our insurance agents are licensed in Michigan and can answer your questions as you consider coverage.
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