Business Insurance Requirements for Lawyers in Michigan

Michigan is rapidly gaining a reputation for its business-friendly climate. With its relatively low corporate tax rate, its zeal for innovation, and the presence of the “Big Three” automakers, it’s easy to see why a lawyer might decide to work in the Great Lakes State. Just as a litigator in Grand Rapids has different business considerations than a tax firm in Flint, your individual risks and other key business factors greatly impact your choice of business insurance.

If you plan to lease commercial space, your lease agreement will likely require you to provide proof of commercial property insurance and/or general liability insurance. Michigan state law requires workers’ compensation insurance for all small businesses that employ three or more workers, or employ one or more workers for 35 or more hours per week for 13 or more weeks. State law does not require lawyers in Michigan to hold professional liability insurance. However, potential clients may ask you to show proof of coverage. Also called errors and omissions or lawyer malpractice insurance, this coverage is especially useful to lawyers, since it could protect you if a business discrepancy leads to a lawsuit. Another policy increasingly important for lawyers to consider is cyber liability insurance. In the event of a data breach or cyberattack, this policy can potentially aid with recovery expenses. Lawyers are at particular risk, as they are often entrusted with sensitive client information.

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 lawyers in Michigan, and start an application to get your free quotes today.

Find the right insurance policy for your law firm

The most common policies for Michigan lawyers 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 Workers' comp Cyber liability
1099 or independent contractor X X   X
Business owner with employees X X X X
Solo business owner X X   X

 

General liability insurance: General liability insurance is the foundation of a lawyer’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 lawyer malpractice insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.

Cyber liability insurance: Cyber liability insurance can helps lawyers survive data breaches and cyberattacks by helping with recovery expenses. You may need this policy if you handle sensitive data such as credit card numbers, passwords, or Social Security numbers.

Business owner's policy (BOP): Lawyers 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, or employ one or more worker 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. Independent contractors or solo business owners can cover themselves under a workers’ compensation policy, but they are not legally obligated to have a policy. While workplace injuries are less likely to befall lawyers than those in other professions, injuries can happen in any industry.

Business insurance costs for lawyers in Michigan

In Michigan, the cost of business insurance for lawyers trends with the national median, according to an analysis of Insureon applications. However, you can expect a significant discount for workers’ compensation in Michigan compared to costs in most other states. In Michigan, there are significant penalties imposed on employers who do not carry workers’ comp, including fines or imprisonment for no less than 30 days. While errors and omissions insurance costs are slightly higher in Michigan than the national median, this coverage is significant for lawyers, who face a higher risk of exposure due to the nature of their work. In all, Michigan lawyers can expect to spend less than $500 per month to secure their practice.

Median Insurance Costs for Michigan Lawyers

Save time and money with Insureon

Insureon’s industry-leading technology helps lawyers 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 lawyer insurance quotes today.