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    Michigan Business Owner's Policy

    Michigan Business Owner's Policy

    Michigan's entrepreneurial spirit remains strong. There are over 902,000 small businesses that employ at least 1.9 million workers. Given the increasing momentum, the governor presented a $2.1 billion proposal to support these small companies further, encourage more residents to start and grow local businesses, and solidify economic prosperity across the state.

    Michigan businesses are encouraged not just to get the right coverage but to get liability insurance and business owner's policy with competitive rates. This would allow you to get sufficient coverage at a relatively lower cost than other insurance and financial services options. Learn more about the requirements, professional services, personal property, and the right business owners' policies for your business.

    Requirements For Business Insurance In Michigan

    Michigan state law doesn't strictly require commercial auto insurance, but it does require workers' compensation insurance to get business insurance. If a private employer frequently hires three or more employees at once or has one or more employees who work more than 35 hours per week, they are required to have insurance.

    Other company insurance policies, like general and professional liability, are not required in Michigan, but many employers and potential clients do. The types and sums of insurance they require before you can start working with them are frequently outlined in their contracts.

    What Does Michigan's BOP Cover?

    General liability coverage and commercial property insurance, often known as business hazard insurance, are covered under a business owner's policy. They cover your small business's liabilities and real estate together.

    Moreover, a BOP's coverage is customizable and extensive, especially during a business interruption. This includes the following:

    • Third-party physical harm
    • Injuries from advertising
    • Property harm to third parties
    • Commercial property damage
    • Product responsibility

    Other Insurance Types

    Michigan's business owner's policy isn't the only type of insurance you can get. It's also important to explore other options to discover policies that cover all your bases regardless of what industry your business is in. Here are a few to consider for your own company:

    Quick Statistics On Small Businesses And Business Insurance In Michigan State

    • According to the Bureau of Labor Statistics, private sector enterprises were responsible for almost 87% of Michigan's 104,800 non-fatal workplace accidents in 2018.
    • In Michigan, 902,000 small enterprises employ 1.9 million people or 48.3% of the state's workforce.
    • Small businesses in Michigan make up 99.6% of all companies with under 500 workers.
    • 60% of owners of small businesses claim to have insurance. However, more than 40% of people think their insurance provides enough protection, even for work claims.

    Frequently Asked Questions About Business Owner's Insurance In Michigan

    Here are some frequently asked questions related to business owner's policy in Michigan:

    1. What kind of insurance do you need to operate your own business?

    A business's legal fees and damages, if proven liable for a third party's injury or death, property loss or damage, or economic or financial loss brought on by negligence, are covered by public liability insurance.

    2. Does an LLC in Michigan require workers' compensation insurance?

    A workers' compensation policy or a Notice of Exclusion Form, WC-337, must be on file for corporations, limited liability entities, and partnerships with this office. The business's owner(s) is regarded as an employee(s).

    3. Do I require Michigan workers' compensation insurance for myself?

    In Michigan, an employer must have workers' compensation insurance if: One or more employees were employed for 35 hours or more per week for 13 weeks or more during the previous 52 weeks (or one year).

    Business owners' policy remains in demand among small and large businesses. But never settle for the first quote that you receive. In addition to the bond amount and primary and interest rates, you want to make sure you get comprehensive coverage that secures your business's future. 

    Play it smart, and review what your coverage protects so you can secure long-term business solutions. Browse through our blogs at Assured Standard for more information on business insurance and the right insurance company.

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    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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