Get the right commercial insurance for your Michigan business
Which insurance policies are recommended for Michigan businesses?
Small businesses in Michigan most often buy these types of insurance.
General liability insurance
Business liability insurance is important for all Michigan businesses. This policy covers common risks, including customer injuries. Most commercial leases require this coverage.
- Customer bodily injuries
- Damaged customer property
- Libel and other advertising injuries
Workers’ compensation insurance
Workers’ compensation is required for all Michigan businesses with at least one full-time employee or three part-time employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal costs from employee injuries
Commercial auto insurance
This policy is required for business-owned vehicles in Michigan. It covers injuries and property damage in an accident, along with vehicle theft, vandalism, and weather damage.
- Accidents involving business vehicles
- Theft of a business vehicle
- Damage to a company vehicle
Business owner’s policy
A BOP bundles commercial property insurance and commercial general liability coverage. It's a way for small, low-risk Michigan businesses to save money on insurance.
- Customer injuries
- Damaged customer property
- Damaged business property
Professional liability insurance
This policy, also called errors and omissions insurance (E&O), protects Michigan businesses that provide professional services or advice. It covers lawsuits related to work performance.
- Work mistakes and oversights
- Professional negligence lawsuits
- Late or incomplete work
Errors and omissions insurance
E&O, sometimes called professional liability insurance, is common with professional services in Michigan. It can cover the cost of lawsuits related to your work performance.
- Missed deadlines
- Accusations of negligence
- Errors and oversights
Cyber insurance
This policy covers financial losses from data breaches and cyberattacks. It's recommended for Michigan businesses that handle credit card numbers and other sensitive information.
- Customer notification expenses
- Fraud monitoring services
- Data breach investigation
Commercial umbrella insurance
Umbrella insurance boosts coverage on your general liability insurance, commercial auto insurance, and employer's liability insurance when the underlying policy reaches its limit.
- Customer lawsuits
- Auto accident lawsuits
- Employee injury lawsuits
Commercial property insurance
This policy covers the value of a business's physical structure and its contents, such as inventory, equipment, and furniture. Bundle it with general liability coverage in a BOP for savings.
- Fire
- Theft and vandalism
- Weather damage
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Which business insurance policies are required in Michigan?
State laws can affect which business insurance coverage you need. These policies are required everywhere in Michigan, from Detroit to Grand Rapids.
Workers' compensation insurance
Michigan state law requires private employers with one or more full-time employees, or three or more employees of any status, to carry workers’ compensation insurance. All public employers must carry this coverage.
Workers' comp insurance covers medical bills for work-related injuries and illnesses, such as a cleaning business employee becoming sick from cleaner fumes. It also provides disability benefits for injured Michigan workers.
Commercial auto insurance
All business-owned vehicles in Michigan must be covered by commercial auto insurance. This policy covers the cost of accidents involving work vehicles.
Michigan requires both bodily injury coverage and personal injury protection (PIP):
- $50,000 bodily injury liability per person
- $100,000 bodily injury liability per accident
- $10,000 for property damage in another state
- $250,000 personal injury protection (or less for individuals enrolled in Medicare or Medicaid)
Trucking companies may need additional coverage to comply with regulations.
Though it's not required, personal vehicles driven for work purposes should be covered by hired and non-owned auto insurance (HNOA), as personal auto policies usually exclude business use. It can be added to general liability insurance or a business owner's policy.
How much does small business insurance cost in MI?
Commercial insurance can be affordable for small business owners. Based on policy data from Insureon customers in Michigan, the average costs are:
General liability: $47 per month
Workers' comp: $53 per month
Professional liability/E&O: $83 per month
Factors that influence business insurance costs include:
- Your industry and risks
- Business operations
- Number of employees
- Location, such as Detroit or Sterling Heights
- Policy limits and deductibles
Top professions we insure
FAQs about Michigan business insurance
How do I get a certificate of insurance for my business?
Insureon's licensed agents can help you find policies that fulfill Michigan's business insurance requirements and match your type of business. Once you've purchased coverage with us, you can download a certificate of insurance (COI) by logging into your account.
Can my company be held liable for a data security breach?
Yes – that's why cyber insurance is so crucial. Small businesses are a common target of cyberattacks since they often have fewer security measures in place.
Michigan's data breach laws require businesses to report security breaches to affected residents, and the costs can escalate quickly. Cyber liability insurance lessens the financial impact by paying for notification costs, legal fees, and fines.
Does my industry affect state insurance requirements?
Yes, your state may have special requirements for business insurance and bonds for your industry. You may also need a license depending on the work you do.
Contractors often need to carry general liability insurance or surety bonds to perform certain types of work. Having the right insurance and bonds helps you comply with state licensing requirements.
Real estate agents and brokers and other professionals who offer advice or services are sometimes required by state law to carry errors and omissions insurance in order to get licensed in their state.
Cannabis businesses in Michigan need to carry product liability insurance with a $100,000 limit for bodily injury liability to operate legally.
Note that cities and counties may have their own laws, in addition to state laws.
How can I save money on Michigan small business insurance?
As with any purchase, shopping around is one of the best ways to find an affordable option. With Insureon, you can compare quotes from top-rated providers by filling out a free online application.
Other ways to save include bundling insurance products for a discount, and choosing less expensive policy options, such as lower limits or a higher deductible. Learn more about how to find cheap business insurance.