Michigan Business Insurance

Michigan Savings Tips

  • To meet contract requirements or cover potential losses, many companies need to add coverage to their existing general liability or other insurance policies. Excess liability insurance, also called "umbrella insurance," is an easy and affordable way to add millions of dollars in coverage for a very affordable price.
  • Emphasizing safety, and implementing a comprehensive safety program to reduce workplace injuries, can help reduce workers' compensation claims and keep your premiums low.
  • When buying insurance, it pays to shop for the best rate. Rather than spending time calling multiple agencies and filling out lots of applications, simply complete one online application for all coverages at Insureon. You'll receive multiple quotes in 24 hours or less, and can start coverage immediately.
Michigan Workers Compensation Rules  |   Michigan Department of Insurance

According to the Michigan Business website, the Mitten State’s economic activity is currently at a ten-year high. It’s the fastest-growing state in the Midwest and the sixth fastest in the country. It’s no wonder why entrepreneurs like you like setting up shop in Michigan.

Its proximity to Canada means you’ll have access to both Canadian and U.S. customers. And Michigan’s corporate income tax is currently at an all-time low –only 6 percent. That means Michigan boasts one of the best tax environments in America. You’ll also be happy to hear that Michigan sets aside $100 million just for small and medium business loans each year.

But before you open your new business in Michigan or make big plans to grow a business you’ve been cultivating, you’ll need to secure an effective small business insurance plan to protect your assets and help you grow.

Types of Insurance Policies for Michigan Business Owners

When starting a business, reviewing all the different types of insurance policies can be overwhelming. We recommend taking a look at these four coverages to start:

Business Liability Package

Insurers call this a Business Owner’s Policy. It’s a cost-saving package deal available to “low-risk” business owners. BOPs pair General Liability Insurance and Property Insurance together in one discounted policy. But you still get the same coverage. Property Insurance helps you replace or repair property that is lost or damaged in events like fire, theft, and windstorms. The General Liability portion of the BOP helps you pay for expenses related to third-party liability claims such as advertising injury (slander, libel, copyright infringement, etc.), bodily injury, and property damage.

Professional Liability Insurance

This coverage is also called “Errors & Omissions Insurance” because it protects you in the event that you or an employee makes a professional “error or omission” that causes someone (usually a client) financial loss. If that person decides to sue, your Professional Liability coverage can help you pay lawyers’ bills, plus any settlements or judgments that may arise from the complaint.

Workers’ Compensation Insurance

When one of your workers develops a workplace illness or injury, your Workers’ Compensation Insurance steps up to help you pay their medical bills. In some cases, it can also provide benefits for a portion of the employee’s lost wages. Each state has different laws concerning Workers’ Compensation. In Michigan, you need WC if you hire three or more employees. But in some cases, you may need to carry it even if you hire fewer than three employees. For more information on your state’s laws, read our guide to Michigan’s Workers’ Compensation laws. Those who do not follow the law are subject to fines or imprisonment.

Employment Practices Liability Insurance

This type of insurance helps you pay for lawsuits brought by employees or potential employees who claim you’ve violated one of their workplace civil rights. These cases allege incidents such as wrongful termination, privacy invasion, harassment, and discrimination, among others. These lawsuits are on the rise, so EPLI is becoming an increasingly valuable coverage.

1. NOAA National Climatic Data Center: Annual average number of tornadoes, 1953–2004

2. PAH Webmaster (2005-11-02): 1925 Tri-State Tornado

Additional Resources
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What it is, how to avoid it, and what to do if you face an advertising injury lawsuit.

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