Do Businesses Need Liability Insurance In Michigan?

Any business owner is familiar with risk–and the consequences of not protecting yourself against it. Business owners in Michigan should consider business insurance to protect against risks associated with their business property, employees and daily operations. Choosing to run a business without insurance coverage can have a devastating impact.

What Kind of  Insurance Should I Consider for My Business? 

Liability insurance in Michigan is not required by law. However, many employers and prospective clients will expect your business to have it. In 2018, private sector businesses accounted for nearly 87% of Michigan’s non-fatal workplace injuries, according to the Bureau of Labor Statistics. Insurance coverage helps minimize the business disruptions and financial damages that may result from incidents.

Commercial liability insurance in Michigan protects your business from financial loss resulting from claims of injury or damage caused to others by you or your employees. A policy typically covers:

1.) Bodily Injury – Covers incidents where a client is injured at your business property.

2.) Property Damage – Covers damage to someone else’s property.

3.) Personal Injury – Covers damage to a person’s reputation including libel, slander, copyright infringement, etc.

4.) Advertising Injury – Covers financial loss or damage caused by your advertising.

5.) Legal Defense and Judgments – Covers costs to defend against real and frivolous suits and judgments up to the limit of your coverage. However, this does not include punitive damages for negligence or willful misconduct.

The only liability insurance in Michigan required by state law is workers’ compensation. Private employers are required to have coverage if they have one or more employees who work more than 35 hours per week, or if they regularly employ three or more employees at one time. Other common types of insurance coverage for Michigan businesses to consider are general liability, professional liability, cyber liability, and commercial auto.

How Much Does Liability Insurance in Michigan Cost?

The cost of your insurance policy will depend on your business’ specific situation. Businesses are typically rated on the exposures that are unique to their industry. Other factors that affect your cost include your coverage needs, business size, and location.

CTG Insurance: Personalized Business Insurance Solutions

The right business insurance can make or break your business. CTG offers personalized insurance solutions tailored to your unique needs, risk level, and budget. We make the insurance buying process simple and accessible to all. Get started by scheduling a phone call, virtual, or in-person meeting with one of our experienced insurance advisors.