Types of Commercial Insurance Coverage
Every business has different exposures. Here are the core coverage types we write for Michigan businesses.
General Liability Insurance
General liability, sometimes called commercial general liability (CGL), covers third-party claims of bodily injury, property damage, and personal or advertising injury arising from your business operations.
- Customer injuries on your premises (slip-and-fall, etc.)
- Damage to customer property caused by your work
- Legal defense costs and settlements
- Claims of libel, slander, or copyright infringement
Workers' Compensation Insurance
Michigan law requires most employers to carry workers' compensation. This coverage pays for medical expenses and lost wages when employees are injured on the job or develop work-related illnesses.
- Medical treatment and rehabilitation costs
- Wage replacement benefits (up to 80% of after-tax wages)
- Disability benefits for permanent injuries
- Death benefits for surviving dependents
Commercial Property Insurance
Protects your physical business assets from covered perils like fire, theft, vandalism, and certain weather events. Coverage applies to buildings you own, equipment, inventory, furniture, and business records.
- Buildings and structures you own or lease
- Equipment, machinery, and tools
- Inventory and stock
- Furniture, fixtures, and computers
Business Owner's Policy (BOP)
A BOP bundles general liability and commercial property insurance into a single policy, often at a lower combined premium than purchasing them separately. Well suited for small to mid-size businesses with standard risk profiles.
- Combined liability and property coverage
- Business interruption insurance included
- Simplified administration with one policy
- Often includes additional coverage options
Commercial Auto Insurance
Covers vehicles owned and used by your business. Personal auto policies typically exclude business use, so if employees drive company vehicles or use personal vehicles for work purposes, commercial coverage is necessary.
- Liability for accidents caused by employees
- Physical damage to company vehicles
- Coverage for hired and non-owned vehicles
- Medical payments for injured occupants
Professional Liability (Errors & Omissions)
Also called E&O insurance, this protects businesses that provide professional services or advice from claims of negligence, errors, or failure to perform. Covers legal defense costs and damages even if claims are unfounded.
- Claims of professional negligence
- Missed deadlines or failure to deliver
- Errors in professional advice or services
- Defense costs regardless of outcome
Cyber Liability Insurance
Covers financial losses from data breaches, cyberattacks, and system failures. Michigan's data breach notification laws require businesses to notify affected residents, and the costs of a breach can escalate quickly without proper coverage.
- Data breach investigation and notification costs
- Credit monitoring for affected customers
- Legal defense and regulatory fines
- Business interruption from cyber events
Employment Practices Liability (EPLI)
Protects against claims by employees alleging wrongful termination, discrimination, harassment, or other employment-related issues. These claims can arise even when you believe you've done everything correctly.
- Wrongful termination claims
- Discrimination and harassment allegations
- Retaliation claims
- Wage and hour disputes
Commercial Umbrella Insurance
Provides additional liability limits above your underlying policies (general liability, commercial auto, employer's liability). When a claim exceeds your primary policy limits, umbrella coverage helps protect your business assets.
- Extra liability protection beyond base policies
- Coverage for catastrophic claims
- May cover gaps in underlying policies
- Protection against large judgments
Michigan Business Insurance Requirements
Understanding what coverage Michigan law requires helps you stay compliant and avoid penalties.
Workers' Compensation Requirements
Under the Michigan Workers' Disability Compensation Act of 1969, employers must carry workers' compensation if they meet any of these criteria:
- One or more employees working 35+ hours per week for 13+ consecutive weeks
- Three or more employees at any given time, including part-time
- All public employers regardless of employee count
- Agricultural employers with 3+ employees at 35+ hours for 13+ weeks
- Domestic employers with 1+ employees at 35+ hours for 13+ weeks
Penalties for Non-Compliance
Michigan takes workers' compensation requirements seriously. Employers who fail to maintain required coverage may face:
- Fines up to $1,000 per offense
- Up to 30 days in jail per offense
- Court orders prohibiting hiring until compliant
- Personal liability for all employee injury costs
Commercial Auto Requirements
Vehicles owned by or registered to your business must carry commercial auto insurance with Michigan's required minimums:
- Bodily injury liability coverage
- Property Protection Insurance (PPI) for tangible property damage
- Personal Injury Protection (PIP) for medical expenses
- Residual liability coverage
Industry-Specific Requirements
Certain licensed trades in Michigan must carry specific coverage to maintain their professional licenses:
- Licensed electricians: $500,000 per occurrence / $1,000,000 aggregate general liability
- Contractors: Often required by contracts and commercial leases
- Professional services: Clients frequently require E&O coverage
- Bonding may be required for certain trades
Industries We Serve
We write commercial insurance for a wide range of Michigan businesses.
Don't see your industry?
This list is not exhaustive. Contact us to discuss your specific business and coverage needs. As an independent agency, we work with multiple carriers and can often find coverage for businesses that other agencies turn away.
Frequently Asked Questions
Common questions about commercial insurance in Michigan
Commercial insurance costs vary significantly based on your industry, business size, claims history, coverage limits, and location. As a general reference, Michigan small businesses typically pay in these ranges:
- General liability: $40 to $100+ per month
- Workers' compensation: $40 to $100+ per month
- Professional liability: $50 to $100+ per month
Higher-risk industries like construction and manufacturing typically pay more than desk-based professional services. The best way to get an accurate estimate is to request a quote based on your specific business operations.
If an employee is injured on the job in Michigan, follow these steps:
- Ensure the employee receives immediate medical attention
- Report the injury to your workers' compensation insurance carrier
- The employee must notify you of the injury within 90 days (though sooner is better)
- As the employer, you have the right to select the healthcare provider for the first 28 days of treatment
- After 28 days, the employee may choose their own doctor with proper notice
- File a claim with the Michigan Workers' Compensation Agency using form WC-117H
The employee has two years from the date of injury to file for workers' compensation benefits. Most claims are straightforward, but disputed claims may require mediation or a hearing before a workers' compensation magistrate.
If employees drive their personal vehicles for business purposes, such as making deliveries, visiting clients, or running errands, their personal auto policies typically exclude coverage for business use. This creates a gap that could expose your business to liability.
Hired and Non-Owned Auto (HNOA) coverage addresses this gap. It can be added to your general liability policy or BOP and covers liability when employees drive vehicles your company does not own. It is generally inexpensive relative to the protection it provides.
If your business owns vehicles outright, those require a separate commercial auto policy. Vehicles registered in your business name cannot be insured under a personal auto policy.
A Business Owner's Policy (BOP) combines general liability insurance and commercial property insurance into a single policy. It typically includes business interruption coverage as well. The main advantages are convenience (one policy, one renewal date) and cost savings (bundled pricing is often lower than separate policies).
BOPs work well for small to mid-size businesses with relatively standard risk profiles. However, they come with preset coverage options and may not offer the customization that larger or higher-risk businesses need.
Separate policies make sense when you need higher limits than a BOP offers, when your business has unusual exposures that require specialized coverage, or when you want more control over each coverage component. We can help you evaluate which approach fits your situation.
Any business that stores customer data, processes credit card payments, or relies on computer systems to operate should consider cyber liability insurance. Small businesses are increasingly targeted because they often have weaker security than larger organizations.
Michigan's data breach notification law requires businesses to notify affected individuals when personal information is compromised. The costs of investigation, notification, credit monitoring, legal defense, and potential regulatory fines add up quickly. A single breach can cost tens of thousands of dollars even for a small business.
General liability policies do not cover cyber incidents. Cyber liability is a separate coverage that addresses first-party costs (your own losses) and third-party claims (lawsuits from affected customers).
A certificate of insurance (COI) is a document that proves you have coverage. Clients, landlords, and general contractors often request certificates before signing contracts or allowing you on their property.
Once you have a policy in place with us, we can issue certificates on your behalf. Standard certificates can typically be provided within one business day. If the certificate holder needs to be listed as an additional insured on your policy, that may require a brief underwriting review.
We recommend keeping your policy information handy so you can respond quickly to certificate requests. Delays in providing proof of insurance can hold up contracts and job starts.
Why Work With an Independent Agency
We represent you, not the insurance companies.
Multiple Carrier Options
Captive agents represent one company. We work with multiple carriers to find the right combination of coverage and price for your specific business.
Local Knowledge
We understand Michigan's insurance requirements and the industries that operate here. When regulations change, we help you stay compliant.
Claims Assistance
When you have a claim, we help you navigate the process. You have an advocate who knows your policy and can communicate with the carrier on your behalf.
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Three locations serving West Michigan since 1994