Learn about business insurance requirements and the most common policies for architects in Michigan.
Which policies are required for architects in Michigan?
If you have a commercial lease, your property manager may require you to purchase general liability insurance. The most common policy purchased by architects in Michigan, it can protect your business from expenses associated with client property damage, injuries, and other common mishaps.
State law in Michigan requires every small business with three or more employees at any one time to carry workers’ compensation coverage. This requirement also applies if you have one or more workers for 35 or more hours per week, for 13 or more weeks. Business-owned vehicles must be covered by commercial auto insurance, and personal vehicles used for business purposes should have commercial coverage, as well.
Your clients may require professional liability insurance in a contract. Also called errors and omissions insurance, professional liability insurance provides financial protection if a client files a lawsuit claiming your work caused financial harm because it was late, erroneous, or incomplete.
What are the most common policies for architects in Michigan?
The most common policies for architects in Michigan vary depending on revenue, client contracts, partnerships, and other factors.
General liability insurance
General liability insurance is the foundation of an architect’s business protection, with coverage that extends to client injuries, client property damage, and advertising injuries. Most commercial leases require you to have this coverage.
Business owner's policy (BOP)
Architects often qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability insurance at an affordable rate.
Professional liability insurance
Many clients require proof of professional liability insurance before entering into contracts for professional services. This policy, also called errors and omissions insurance or architect liability insurance, can help cover legal expenses if you’re sued for unsatisfactory performance or a work mistake.
Michigan workers' compensation
Michigan law requires employers with three or more employees to carry workers’ compensation coverage. This requirement also applies if you have one or more workers for 35 or more hours per week for 13 or more weeks. Independent contractors are not considered employees and don’t count toward this threshold.
If your architecture firm doesn’t have employees, you may choose whether to carry coverage for yourself. This policy can help pay for medical expenses and lost wages associated with occupational injuries.
Commercial auto insurance
Commercial auto insurance can cover vehicles your business owns or uses for business purposes. If your vehicle is involved in an accident, this policy can cover your liability for the other person's bodily injuries and property damage. It can also cover your vehicle when it is damaged by weather events, vandalized, or stolen.
What do architects in Michigan pay for insurance?
The cost of architect insurance in Michigan is comparable to the national median, according to an analysis of Insureon applications.
Michigan architects pay a median of $1,930 a year ($160 per month) for professional liability insurance, while the national median is $1,733 a year ($145 a month). However, workers’ compensation costs are lower than the national median. Michigan architects can expect to pay $420 per year for workers' comp versus the national median of $600.
Save time and money with Insureon
Insureon’s industry-leading technology helps architects in Michigan save time and money shopping for insurance by comparing policies from top U.S. carriers. 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.
To make the application go quicker, have this information ready:
- Workforce details, such as the number and types of employees
- Current and projected revenue
- Business partnerships
- Insurance history and prior claims
- Commercial lease insurance requirements
Apply for free architect insurance quotes today.