Michigan, nicknamed the “Wolverine State” and the “Great Lakes State”, is ranked at number 8 for Technology and Innovation and number 10 for Infrastructure and Transportation according to the 2011 CNBC Ranking of America’s Best States for Businesses. Along with its major cities of Grand Rapids, Detroit, and Flint, Michigan borders four out of the five great lakes. There are 15 four-year public colleges and universities in the state of Michigan along with several other private institutions to add to the economic development and entrepreneurial resources of the state. Tourism, manufacturing, and processing businesses thrive in Michigan as it is the number one state in the nation for manufacturing dealerships, and is also a leading manufacturer of cereal, tools, and hardware. Michigan has the largest state forest system in the country, 40 ski resorts and 150 lighthouses making tourism businesses successful in the state. In 2011, Michigan became home to the first satellite office of the U.S. Patent and Trademark office due to the high volume of patents generated by Michigan businesses. If you are launching a small business in Michigan or expanding one, take note of the following standard business insurance in Michigan coverages.
Standard Business Insurance Coverages in Michigan
Business Owners Insurance in Michigan is an insurance policy obtained by a business, also known as a BOP, as a detailed bundle for small companies that offers a variety of liability coverages. A BOP integrates two key coverages in one single policy: property insurance and general liability. The insurance coverage for Michigander employers transfers risk away from the business owner to the insurance company by providing them with added protection for different types of liability, including buildings, equipment, and legal liabilities. The most common claims that business owners insurance coverage protects you from include: liability claims, important documents, broken equipment, fire, employee dishonesty, money and securities, and property claims. Other components for the entity in Michigan may be supplemented from the original BOP coverage depending on the possible risks of the company.
General liability insurance in Michigan is written to provide security and protection for employers from financial burdens that can occur from reckless acts, omissions, or both, caused by the business owner or their workers which may result in physical harm or property damage. Contractual liabilities, liabilities from goods sold, and accidents on the premises of the business are some of the more common types of exposures covered under general liability insurance. The injury or damage might be unintentional. General liability insurance for organizations in Michigan may be a single policy or can be a combination of policies.
A package policy is an select type of insurance policy for a Michigan-based business that includes two or more different types of insurance into one insurance policy, or a bundle. Typically, a package policy in the Great Lakes State will combine general liability insurance (discussed above) and commercial property (discussed below); although a package policy in Michigan can also be carefully designed to include almost any type of coverage which will vary based on the unique needs of the enterprise. A package policy can accommodate an employer as it provides them with a good deal of flexibility in protecting the risk exposures of the business.
Commercial Property Insurance in Michigan is a kind of security coverage for different types of Detroit, Michigan commercial property, including, invaluable papers, building, materials, equipment, furniture, and inventory. Commercial property insurance offers protection against different types of perils, including windstorm, hail, explosion, fire, theft, natural disasters, and lightning strikes. A variety of different industries feel more secure with this class of insurance, including retailers, not-for-profit organizations, manufacturing businesses, and service-related industries.
If any Michigan business owner has employees working for them, they should obtain Workers’ compensation insurance to offer coverage against employee work-related illnesses, or work-related injuries. Workers’ compensation insurance in Michigan is a no-fault, state-mandated insurance structure that provides benefits to employees who received injuries or an illness on the job. The state of Michigan requires every business with employees to carry workers’ compensation insurance, therefore, they may be liable for fines and civil penalties if they fail to carry it, and possibly be subjected to paying the cost of injuries sustained by their personnel. By having workers’ compensation insurance in Michigan for your company, you will receive benefit from medical care and wages loss coverage with the guarantee that employees will not sue your organization for injury or illness during work.
Business owners in Detroit, Michigan and throughout the Great Lakes State, whether they have one vehicle or several vehicles, need to be protected by commercial auto insurance. Commercial auto insurance in Michigan provides financial protection to employers and their workers by offering coverage for a business’s use of vehicles including trucks, vans, and cars. Commercial auto insurance offers protection by paying for damages and medical costs that may result from vehicle accidents, vandalism and damage from hail storms and other natural disasters. Coverage for Michigan workers includes a variety of vehicles including those that are rented, owned, leased, or hired by the business owner, as well as employee-owned vehicles used for business operations. Because of this, it’s recommended that companies obtain a commercial auto insurance policy — known as non-owned commercial auto insurance — if employees use their personal vehicle for business operations.
Commercial umbrella insurance in Michigan is beneficial to organizations due to the coverage limits of their existing liability policies, and since they generally don’t cover all expenses in the case of an unanticipated and catastrophic event occurs. Umbrella insurance fills the gap between where the general liability insurance starts and the commercial auto insurance or other liability insurance stops. Commercial umbrella insurance for employees in the state of Michigan is an important resource that fills in the gaps and covers various exclusions in their prime business liability coverage. Umbrella insurance is a helpful way to have additional protection for property damage, bodily injury, or other types of liabilities.
Some Additional Business Insurance Coverages in Michigan to Consider
Errors and Omissions insurance policies offer Michigan employers and employees protection against claims and lawsuits made by clients or customers for careless duties and acts, mistakes, and oversights made through various business operations which resulted in lost income or production on the part of the client or customer. Errors and Omissions insurance in Michigan cover legal defense and court costs for business leaders, as well as settlements as stated on the insurance contract. As obstetricians require malpractice insurance to protect themselves, owners of small companies in the state of Michigan should have errors and omission insurance, primarily if they offer services or consulting advice, whether directly or though subcontractors.
Professional liability insurance in Michigan provides security for workers, such as accountants, lawyers, and medical professionals, from being responsible for paying the legal cost of defending against errors, inattention claims, failure to perform, or omission which was made by a client, along with damaged owed in that claim. The coverage’s primary focus is on the financial burden on the part of the insured from this type of Professional liability insurance and may offer claim coverage to the business professionals, even if the legal actions turn out to be invalid. Professional liability insurance in the state of Michigan is required by law in a myriad of professional industries, including medical and legal, but a contract can require it in other industries.
Employment Practices Liability Insurance (EPLI), gives business executives protection against claims of discrimination, unlawful termination, sexual harassment, violation of contract, income violations, emotional grief, libel, slander, mental distress, neglectful hiring and promotion decisions, and offensive claims. Employment practices liability insurance in Michigan is based on the laws, acts, and protection from VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act, and Family and Medical Leave Act; the Equal Opportunity Employment Commission (EEOC) enforced all of these laws, not only in Michigan, but in all other states in the nation.
Fidelity Bonds in Michigan
Fidelity bonds in Michigan are a particular variety of insurance offered to employers in order to protect against losses, like fraud, embezzlement, or theft by one or more professionals. Since compensation from employee deceitful acts is usually not possible due to the cash already being spent, fidelity bonds are an important security measure for Michigan-based enterprises that would otherwise have to suffer these financial burdens. Even if your business has extra security against this type of fraud, such as employee screening, close supervision, and internal controls, it doesn’t always prevent these occurrences. Losses accrued from employee thefts of money, property, or securities are all covered under fidelity bonds insurance in the Wolverine State. There are three major types of fidelity bonds in Michigan; business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in Michigan
A surety bond is an significant contract or agreement shared between three parties: the principal, obligee, and surety (insurance company). The surety bond acts as a promise that the party will pay a specific amount if one of them fails to meet a commitment, such as fulfilling the terms of the contract. A surety bond protects the recipient from financial burden if the contract is not fulfilled, while the surety company takes on the liability for not performing. A surety bond is required for financial reimbursement. Owners of entities in the state of Michigan may require a surety bond to guarantee payment of utility bills or state sales taxes, while a contractor may need to post a bond to secure work or be qualified for licenses. While surety bonds in Michigan are usually in the construction industry, surety bonds are also used by mortgage brokers, automobile dealers, medical suppliers, health clubs, notaries public, and others. Since many small businesses need bonds, a variety of types and features of surety bonds in Michigan offer a range of guarantees.
Whether you own a book store in Flint, or ski resort in the Grand Rapids, your Michigander small business should be protected by business insurance coverage for potential risk factors including liabilities, litigation, natural disasters, employee deceit and other unforeseen events. Even with standard business insurance, your small business in Michigan may be lacking the amount of coverage you are entitled to and may cause you to be liable for financial burdens. Michigander business owners should consider additional policies to supplement traditional business insurance for the best range of protection and security. Successful businesses can improve their stability with additional business insurance policies.