Business Insurance Requirements for Nurses in Michigan

If you’re an independent nurse not employed by a healthcare facility or other employer, you face challenges and risks everyday that could derail your career. Whether you work as an independent contractor in Grand Rapids or employ nurse practitioners in Detroit, business insurance can protect you from risk and maintain the health of your company.

Just as no two patients are alike, a one-size-fits-all approach won’t suffice when choosing business insurance. It’s important to consider your individual risks and key factors that define your business. For example, will your company require commercial space? Most leasing agreements require proof of general liability insurance and/or commercial property insurance. Michigan state law requires small businesses to carry workers’ compensation insurance if they employ one or more workers for 35 hours per week for 13 or more weeks, or three or more workers at any one time. Professional liability insurance, also called errors and omissions or nurse malpractice insurance, can help cover costs relating to lawsuits filed as a result of a business discrepancy or error, such as a misdiagnosis. Many hospitals require proof of this coverage in order to maintain admittance and other privileges.

Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers that fit your needs. Read more to find out which policies are most common for nurses in Michigan, and start an application to get your free quotes today.

Find the right insurance policy for your nursing business

The most common policies for nurses in Michigan vary depending on a number of factors, including revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business type.


Business type General liability / BOP Professional liability / malpractice Workers' comp
Sole proprietor X X  
Contractor / freelancer X X  
Employer X X X


General liability insurance: General liability insurance is the foundation of a nurse’s business protection with coverage that extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.

Professional liability insurance: Many clients require proof of professional liability insurance before entering contracts for professional services. This policy, also called errors and omissions insurance or nurse malpractice insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.

Business owner's policy (BOP): Nurses sometimes qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability at an affordable rate.

Michigan workers' compensation: Michigan state law requires workers’ compensation coverage for all small businesses that employ three or more workers at any one time, or one or more workers for 35 or more hours per week for 13 or more weeks. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. Sole proprietors are excluded from coverage in Michigan when they work as independent contractors. Nurses are at especially high risk for workplace injury, higher than those who work in construction or in manufacturing, according to the Occupational Safety and Health Administration. Given the physical demands of the job, it may not be surprising that nurses are commonly injured due to overexertion along with falls, slips, and trips, according to data from the U.S. Bureau of Labor Statistics, shown in the chart below.

Most Common Workplace Injuries: Nurses in the U.S.

Business insurance costs for nurses in Michigan

Michigan nurses can expect to pay slightly more than the national median to secure their company, according to an analysis of Insureon applications. In most states, workers’ comp is the costliest policy for nurses, given the risks they face on the job. The high cost may tempt you to skip this coverage, but those found noncompliant under Michigan state law can face large fines and jail time. Time lost due to injury is money, too; workers’ comp can help recoup missed wages and pay for hospital bills.

Another item worthy of note is that a business owner’s policy tends to cost considerably less than general liability for nurses in Michigan. Bundling a general liability policy and commercial property policy into a business owner’s policy is a great option to consider.

Median Insurance Costs for Michigan Nurses

Save time and money with Insureon

Insureon’s industry-leading technology helps nurses in Michigan save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Simply apply online and review quotes for the policies that best fit your business needs. Our insurance specialists are licensed in Michigan and can answer your questions as you consider coverage.

To make the application go even 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 nurse insurance quotes today.