Michigan Business Insurance

Michigan is home to over 2.6 million business entities, of which the majority are small businesses. Commercial insurance in Michigan provides a business with financial protection against various covered losses. It can be used by different business types to protect their assets from unexpected financial issues. Basic commercial liability insurance policy for a small business in Michigan starts from $40-$50 per month and increases based on the amount of needed coverage.

The Michigan Department of Insurance and Financial Services (DIFS) regulates insurance in the state, including commercial insurance. Businesses can choose various commercial insurance coverage options based on their specific needs with the help of a Michigan-licensed commercial insurance agent.

What is Commercial Insurance in Michigan?

Commercial insurance is also referred to as business insurance. In Michigan, commercial insurance protects an insured business from client lawsuits, customer or employee injuries, property theft, property damages, and all other unexpected events resulting in injuries, losses, and damages. It provides various coverage types to businesses, such as workers' compensation, property and liability insurance, and professional indemnity policies.

These policies can be tailored to meet your business needs, depending on the type of risk it faces. Having the right insurance can help keep your business running smoothly and efficiently. If the business is damaged in a covered loss event and cannot operate until the repairs are complete, business interruption coverage pays for the bills and salary to the staff.

There are over a thousand insurance companies licensed to sell insurance to Michigan’s businesses, so the choice of coverage is wide.

If you are looking to get group health insurance for your Michigan business, here are the most common places where you can buy it:

Below is a table showing the proportion of commercial insurance premiums written in Michigan compared to the total property and casualty insurance written in the state. Commercial liability is the most sought after coverage in Michigan, accounting for 31% all of business insurance sold in the state:

See the link for the list of insurance companies providing workers disability compensation coverage in Michigan.

Why Do We Need Commercial Insurance in Michigan?

Independent professionals and business owners can protect themselves from financial crises due to covered risks with commercial insurance policies, such as stock or premises damage, liability insurance, and business interruption. Some coverage types also help prevent supply chain breakdowns and business interruption. Commercial insurance protects business owners and their employees from covered unforeseen events. Among insured adults in Michigan, 81% receive insurance through their employer. Business insurance can also help keep your business from folding up in the event of a covered risk because you will be guaranteed a payout from your insurer. It can help potential customers and employees feel that you are trustworthy.

Commercial insurance in Michigan is important for several reasons, including:

• Employee protection: Over 1.9 million individuals are employed by businesses in Michigan. By having workers' compensation insurance, employers can avoid potential legal liabilities and ensure that their employees are taken care of in case of workplace injuries or illnesses. Workers' compensation benefits typically include medical expenses, lost wages, and rehabilitation costs. The Michigan Department of Labor and Economic Opportunity, Workers’ Disability Compensation Agency handles worker’s compensation claims in the state. The Michigan Workers’ Compensation Act compensates injured or sick workers regardless of who is responsible for the incident making it easier for injured workers to file claims. This Michigan Workers’ Compensation Act also applies to certain private businesses with three or more workers, as well as, private companies with at least one or more employees working 35 hours weekly for 13 weeks or longer in the preceding 52 weeks must get workers compensation.
• Liability coverage: The right Michigan liability insurance policy can help prevent the business from paying out of pocket for possible liabilities. A business could face financial problems without proper commercial insurance. Liability claims experience can be very expensive and can significantly affect a company's operations. Without property liability insurance your Michigan business answers claims and lawsuits with the business savings.
• Business credibility: Having proper commercial insurance can help businesses establish a solid and credible reputation among their customers. For example, if a roofing contractor does not have liability and health insurance for its staff, any injury on the client's property must now be covered by the client.
• Aids faster deal closing: Commercial insurance can help businesses close deals faster. Credit and financial institutions will not hesitate to do business with a company if it has proper business insurance coverage. Also, businesses with commercial insurance will more easily get rentals or property leases because their lessors will be confident that in the event of a covered risk, their properties will be secured.
• Coverage from natural disasters: Due to the devastating effects of natural disasters in Michigan (e.g., earthquakes, storms, extreme heat, floods, tornadoes, and winter weather), it is advisable that businesses have the proper commercial insurance coverage. Commercial insurance policies can help the business avoid losses from property damages and the resulting business interruption.
• Coverage for private assets: Commercial insurance can also help protect the personal assets of employees who work for not-for-profit organizations and publicly traded companies, by providing liability financial protection against various types of lawsuits. If you get sued, liability coverage will pay the legal expenses.

Commercial insurance in Michigan provides coverage up to the limits that the company has purchased. Contact a Michigan-licensed business insurance agent to help your business shop for ideal coverage from multiple commercial insurance companies authorized to do business in Michigan. The agent can help assess your business’s current needs and find the most cost-effective solutions.

How Much Business Insurance Coverage Do I Need in Michigan?

Businesses only need to buy the right amount of insurance required to meet their needs and to satisfy legal requirements. The trick is to not under-insure and not over-insure. This is why you should discuss your decisions with an experienced state-licensed insurance agent, who can help you do this.

You typically need at least one of these mandatory commercial insurance coverages in Michigan:

1. Workers Compensation: The most important required insurance for a Michigan business is Workers Compensation, which is required if the business has three or more employees, or at least one who has worked for 35 hours or more per week for 13 weeks or longer. The coverage and the cost of Workers Comp coverage is determined by the amount of the monthly payroll. The more you pay in payroll, the less expensive the coverage becomes. It may cost $50-$60 per $50,000 of payroll on the low end, and $200-$400 for $1 million payroll or more.
2. Health Insurance: Every Michigan business with 50 or more employees must offer health insurance coverage to all employees. If the business covers at least 50% of the employee’s premium, the business is able to claim the federal small-business health care tax credit. The cost of group health insurance is affected by the location of the business and the type of industry the business is in. Speak with a Michigan health insurance agent or broker for more details.
3. Liability Auto: The third most common type of required business insurance is commercial auto insurance. If the business owns or leases vehicles (light duty or transportation), it must maintain at least the legally mandated liability insurance. If the vehicles are financed, full coverage is typically required by the lender. Commercial auto insurance is typically 10%-15% more expensive than private auto insurance in Michigan.

The amount of additional needed coverage depends on the selected options of the policies based on the actual needs of the business and its risk exposures. To identify your business insurance coverage needs, the business must evaluate its property and human capital insurance needs and liability exposures:

• Does the business have property that needs to be insured? This can be a company car, a building, or any other property (furniture, electronics, inventory, etc.). Think about every item the business uses and how much it will cost to repair or replace if it suddenly got damaged or stolen.
• What is the value of the property? The value can be based on Actual Cash Value (ACV) or Replacement Cost Value (RCV). ACV policies cost less but they pay only the depreciated (used) value of the insured property. RCV policies cost a bit more but will allow the business to buy brand new replacements. Make sure to assess your property correctly, or you could lose a lot of money during the claim. Always make sure to have enough money to cover the actual loss after paying the deductible.
• How is the property being used? High-risk businesses typically pay more for liability coverage because the business predisposes them to higher levels of risk. For example, a company with a fleet of delivery cars driven daily by dozens of drivers may want to get a higher limit liability coverage, compared with a company where the vehicles are used by business owners to drive to and from work.
• What risks is the business susceptible to? Do your employees work at a desk in the office, or is this a construction business with roofing crews all over Michigan? Most general contractors get Builder’s Risk insurance and/or surety bonds. Doctors get Medical Malpractice liability insurance. Financial advisors get Errors & Omissions insurance, in case the professional advice leads their clients to financial losses. Discuss your risks with an insurance agent who is familiar with and understands your type of industry. Liability insurance saves your business from paying for claims and lawsuits out of pocket.
• Is life insurance coverage needed for all employees, key employees, or just the business owners?
  • If the company plans to offer group life insurance as a benefit to all employees, the typical range of coverage is $50,000-$500,000 per employee. The coverage may be through Term Life and terminate upon an employee's departure from the company, or Permanent life insurance, which the employees will be able to keep and use for the rest of their life.
  • If the business has key personnel on whom the existence of the whole business hinges, these persons’ lives may be insured by the employer. The amount of keyman life insurance death benefit depends on the amount of expenses the company expects to spend to replace and train the deceased talent.
  • If the business is owned by several partners, the Buy-Sell agreement life insurance may be purchased to further protect the business. It makes sure that the deceased partner’s share of the business stays in the business, while their death benefit is paid out to their family. The death benefit in this type of policy is set in line with the valuation of the insured partner’s share of the business.

These are the types of questions you and your insurance agent need to discuss to figure out how much business insurance coverage you need for your specific business in Michigan. Michigan insurance agent will help your business do the following:

• Navigate through the various options of commercial insurance coverage available to you
• Thoroughly evaluate the needs of your company and compare with similar examples from local market
• Review the business's current policy to ensure it caters to your current business needs. The agent will also help you get the coverages updated, if it's deemed necessary
• Research commercial insurance policies that fit your business's specific needs. The agent can usually find a better deal than the one you can find on your own
• Check for various discounts and savings opportunities that are available to the business
• The agent will explain the differences between the policy choices that affect the business and also different rating factors that can influence the cost of commercial insurance coverage.
• The agent will explain any policy language you consider ambiguous and assist with the application process.

Before employing a Michigan licensed commercial insurance agent, you can confirm their licensing status through the Michigan Department of Insurance and Financial Service (DIFS) search platform.

How Does Commercial Insurance Work in Michigan?

Having the proper commercial insurance is important for any company’s operations. It can help protect a company from various risks that it may face such as claims related to injuries incurred by customers or employees and lawsuits. Michigan’s business climate is favorable as about two-thirds Michigan’s small business owners believe so.

A commercial insurance policy is made up of several components, including:

• Premium: You are required to pay premiums when you buy commercial insurance for your business. Premium payments can be made monthly, annually, or biannually to maintain your commercial insurance coverage. Before you buy commercial insurance, your insurer will gather information about your business and claim history to assess its exposure to risks. This information will determine the amount of premium your business will be required to pay. Paying your business insurance premiums gives your business financial protection from the effects of a major disaster. If you fail to pay your insurance premium on time, your insurer might cancel your coverage. This could expose your business to various losses, such as property damage, lawsuits, and other insurable events.
• Policy limit: This is the maximum amount the insurance company will pay out during the policy period. The policy limit can be a per-occurrence limit, which is the total amount the insurer will pay out for a particular incident. It can also be a combined limit, which is a single limit that can be applied to several coverage types. Before you sign an insurance contract, make sure that you understand the terms of the policy and its limits because they can vary from one commercial insurance type to another.
• Exclusions: Most commercial insurance policies exclude certain types of incidents. For instance, earthquakes and floods are not covered under standard commercial property insurance policies. Also, intentional injuries or damage caused by employees are not covered under general liability insurance.

When choosing a business insurance policy, it is important to thoroughly research the available options to ensure that the company's needs are met. In addition to workers' compensation and disability benefits, businesses are required to purchase commercial auto liability insurance for their vehicles. Commercial auto policy covers:

• Personal Injury Protection (PIP)
• Property Protection Insurance
• Residual Liability Insurance - Bodily Injury and Property Damage (BI/PD)
  • Up to $20,000 for bodily injury per person
  • Up to $40,000 for bodily injury per accident
  • Up to $10,000 for property damage in another state.

Aside from the coverage mentioned above, Michigan does not mandate companies to carry commercial insurance. While it's not mandatory, it is important to note that certain risks can negatively affect a company's operations without commercial insurance.

Contact a Michigan-licensed commercial insurance agent to discuss the various aspects of the commercial insurance process and insurance policy details.

What Are The Types of Commercial Insurance in Michigan?

Commercial insurance in the Michigan insurance industry is classified into four major categories, namely:

• Commercial property insurance
• Commercial liability insurance
• Commercial health insurance (employer health plans + workers' compensation)
• Commercial life insurance

COMMERCIAL PROPERTY Insurance in Michigan

Commercial property insurance in Michigan provides businesses with financial protection to replace or repair insured damaged equipment and buildings. It also offers payment for income lost due to the business's inability to operate following a covered event. In Michigan, businesses can utilize various types of commercial property insurance policies. For example, businesses renting or operating facilities, such as offices or equipment, need commercial property insurance. Likewise, those leasing parts of a building or a property must purchase business insurance. Property owners can also provide coverage for leased properties. Below are the various types of commercial property policies available in Michigan for different categories of businesses.

Business Operation of Small Business Insurance

Under this policy, businesses can enjoy the following commercial insurance products:

• Business interruption insurance: Under this coverage, the benefits include:
  • Loss of Business Income Insurance - Covers disaster-related events such as fire, theft, and strong winds that affect the business's income.
  • Equipment Breakdown: This policy covers damages caused by internal forces such as power surges, mechanical breakdowns, and operator error.
• Landlord or Lessor of Commercial Property: This coverage includes:
  • Coverage for emergency repairs
  • Warehouse building insurance
  • Loss of rental income coverage
  • Coverage against flood damage
  • Rebuild costs coverage
  • Office building insurance
  • Industrial building coverage
  • Business Property Insurance: This includes:
  • Commercial Auto - This covers commercial vehicles owned or leased by a business
  • Builder's Risk Coverage - This coverage protects a business’s building under construction and the builders working on it.
  • Goods/Product Coverage - This type of insurance covers the transportation of goods belonging to the business by land (inland marine) or water (ocean marine).
  • Hull Insurance - covers watercraft (boats, ships, etc.)
  • Cargo Insurance - protects the shipped commercial cargo.

Michigan businesses can get a variety of insurance policies to fit their needs. Bundling multiple coverages can help a business lower its premium costs, which helps the business save. A Michigan-licensed commercial insurance agent can help a business find the ideal commercial property coverage suitable for their needs.

COMMERCIAL LIABILITY Insurance in Michigan

Although commercial liability insurance is not a requirement under the law of the state, it is important that all these businesses operating in Michigan get one. With over 2.6 million businesses operating in Michigan, a commercial liability insurance policy will protect against damages and injuries sustained by third parties from the effects of their employees’ actions. For example, if a customer slips and falls inside the store or on black ice outside of the entrance and gets injured, the business may be held liable and sued for damages.

Without liability insurance, the business would have to pay for the legal defense costs and any resulting settlements or judgments out of pocket, which could be financially devastating. However, with liability insurance in place, the insurance company would typically cover these costs up to the policy limits, helping the business to avoid bankruptcy or closure.

In Michigan, businesses can choose from various commercial liability policy coverages to meet their business specific needs, including:

• General Liability Insurance: This can be a good option to protect your business from the claims that arise from the damages caused by injuries on their property. This insurance usually covers medical payments, legal fees, and property damage.
• Product Liability Insurance: This protects a business from financial losses caused by lawsuits filed against it by clients injured due to its products.
• Professional Liability Insurance: This covers errors made by an insured business that causes financial loss to its customers. There are four general types of professional liability insurance:
  • Errors and Omissions (E&O) Liability Insurance: This can be used by an organization to cover the claims and lawsuits arising from its employees’ errors or wrong advice.
  • Malpractice Insurance: This is mainly used by legal and healthcare professionals to protect themselves from malpractice claims that may occur on the job.
  • Directors and Officers (D&O) Liability: This type of insurance is commonly used by high-ranking business executives. It provides coverage for claims arising from intentional or unintentional disclosure of confidential information, loss of money due to bad investments, conflicts of interest, or other illegal acts.
  • Specific Liability: A business will be legally responsible for the consequences of its customers’ activity, even if they have no criminal intent and are not at fault. Liquor liability coverage is an example of this type of insurance. It is used by establishments that serve alcohol for coverage against damages caused by the actions of their possibly intoxicated customers.
• Business Auto Liability: This type of insurance provides financial support to a third party injured in a car accident caused by the negligence of a driver of an insured business vehicle.
• Contract Liability Insurance: This insurance provides a financial cushion to a business against the potential financial losses it might face due to a contract dispute.
• Cyber Liability Insurance: This insurance covers the cost of recovering or handling a data breach. It also provides financial support to a company in the event of a virus attack.
• Liquor liability: This insurance is a type of business insurance that can protect establishments that sell, distribute, or serve alcohol. Liquor liability can provide financial compensation to the victims of property damage or bodily injury caused by an intoxicated customer. This type of insurance can also be used as an endorsement for general liability insurance.
• Landlord Liability Insurance: This type of insurance is designed to protect landlords from the risks they might face when leasing their property to a business. It can also provide financial support to landlords who are legally responsible for injuries sustained by people on their property. It can cover medical expenses and other legal fees incurred due to such incidents.
• Employment Practices Liability (EPL): This type of insurance protects companies from various employment-related lawsuits like being sued for discrimination or wrongful termination.
• Commercial Umbrella Liability: This type of umbrella policy covers certain risks usually excluded from a company's commercial policy.

Another type of business liability insurance that a company can choose to provide is account receivable coverage. This type of insurance protects companies from the financial losses they might face if their customers fail to pay their bills. The coverage also offers protection to records of account receivables.

Contact a Michigan-licensed commercial insurance agent to get free quotes for commercial liability insurance that suits your business’s needs. The agent can help you evaluate the various options available to your company and help you pick the most affordable and suitable one.

COMMERCIAL HEALTH Insurance in Michigan

According to the Michigan Affordable Care Act, employers must provide coverage if they employ more than 50 workers. However, if an organization has fewer than 50 workers, it is not required to provide health insurance; the business can be eligible for a small business health care tax credit if it offers health coverage. In 2019, 5.8% of Michigan's population were uninsured. Nonetheless, employers provide health insurance coverage to 51% of the insured population, making commercial health insurance an important offering for businesses to consider.

There are various types of commercial health insurance plans in Michigan, such as:

Group health insurance: there are two types of group health insurance policies in Michigan:

• Self insurance: self funded group insurance plan is typically used by employers to provide their employees with health care directly out of pocket. Unlike traditional insurance plans, this type does not require the employer to pay a fixed premium for each employee.
• Fully insured: This type of insurance is usually carried out through a contract between the employer and an insurance company. The employer is responsible for paying the health insurance premium of the employees, while the insurer becomes fully responsible for paying the health claims of the employees of the insured business.

Disability income: Some companies offer insurance to help employees recover from an injury on the job. It provides a portion of their salary while they are recovering.

Workers compensation: A workers compensation insurance policy is a type of insurance that covers the medical expenses of people who get injured at work. It also pays lost wages to employees who can not work due to an injury. However, there is a liability limit, except if the employee can provide proof of negligence on the employer’s part, which caused their injury. The Michigan Department of Labor and Economic Opportunity, Workers’ Disability Compensation Agency is in charge of worker’s compensation claims in Michigan.

COMMERCIAL LIFE Insurance in Michigan

Life insurance protects the interests and life of a Michigan business in two significant ways when used for business purposes. This type of insurance policy is designed to help the business continue to operate and avoid financial hardship in the event of the loss of a key person. For example, if the owner or a key employee of a business were to die unexpectedly, the business could face financial difficulties as a result. A commercial life insurance policy can provide funds to help the business pay for expenses such as debt, salaries, and other operating costs while the business transitions and finds a replacement for the key person who passed away. Commercial life insurance can be used to fund buy-sell agreements between business owners as it ensures that the remaining owners have the funds to purchase the deceased owner's share of the business, which can help to prevent disputes and maintain the stability of the business.

Overall, commercial life insurance is an important protection for businesses, as it can provide financial security and stability in the event of an unexpected loss of a key person.

Group Life Insurance

Michigan group life insurance refers to a type of life insurance coverage that is purchased by an employer and provided to their employees as part of their benefits package. This coverage typically provides a death benefit to the employee's designated beneficiaries if the employee were to pass away while employed by the company. Group life insurance is less expensive than individual life insurance policies and can be a valuable benefit for employees.

In Michigan, group life insurance policies are regulated by the Michigan Department of Insurance and Financial Services (DIFS) to ensure that they comply with state laws and regulations. Employers can choose to offer group life insurance as a term life policy or a permanent life policy. Term life insurance provides coverage for a set period of time, while permanent life insurance provides coverage for the duration of the employee's life as long as premiums are paid. Group life insurance can be an important benefit for employees, providing financial security for their loved ones in the event of their unexpected passing. It can also be a valuable recruitment and retention tool for employers, helping to attract and retain talented employees.

The policy features three unique coverage options:

1. Life Insurance Coverage: This type of insurance provides financial support to the listed dependents of the insured if they pass away.
2. Accidental Death and Dismemberment Insurance: This type of insurance provides benefits to the listed dependent of an insured person if dismembered or die while carrying out their job.
3. Common Carrier Accidental Death Benefit: This provides a lump sum payment to the surviving family members if the insured passes away while in transit on a commercial airplane, a bus, or another means of transport.

Most Michigan employers who choose to offer group life insurance, offer a Term life policy with a death benefit equal to one year of pay.

In Michigan, most insurance companies will place a cap on a maximum benefit that can be given to policyholders. Group life policy's cap on benefits will typically be set at:

• Life insurance - $500,000
• Accidental death and dismemberment insurance - $250,000
• Common carrier accidental death benefit - $250,000

When buying life insurance for employees, it is best to work with a Michigan-licensed commercial insurance agent who can meet your business's needs and provide you with the best possible service. The agent will help you find the right life insurance coverage for the business and its employees. Also, the agent will be knowledgeable about returning a policy and the free look period required under Michigan law. Per section 500.603 of the Michigan Insurance Code, most life insurance contracts are required to provide a free look period of at least ten days, allowing the insured to cancel without making any surrender charges or paying any additional fees. The free look period begins from the day that you receive the contract.

Buy-Sell Agreements Using Life Insurance

A Buy-Sell Agreement is a legal document that outlines what will happen to a business in the event that one of the owners dies, becomes disabled or wants to sell their share of the company. In many cases, life insurance is used to fund these agreements. Let's say there are two owners of a company, and they each own 50% of the business. They have a Buy-Sell Agreement in place that says if one of them dies, the other owner will buy out their share of the company. To fund this agreement, they purchase a life insurance policy on each other for the amount of their ownership stake. If one of the owners dies, the surviving owner receives the death benefit from the life insurance policy and uses that money to buy out the deceased owner's share of the company. This ensures that the surviving owner retains full control of the business, and the deceased owner's family receives fair compensation for their ownership stake. Buy-Sell Agreements using life insurance are important because they provide a clear plan for what will happen to a business in the event of unexpected events like death or disability of an owner. They can also help ensure a smooth transition of ownership and provide financial security for all parties involved.

In Michigan, redemption and cross-purchase are the most common types of buy-sell agreements.

• In a redemption agreement, the company agrees to purchase the ownership interest of a departing owner. The departing owner agrees to sell their shares back to the company at an agreed-upon price. The company then retires or redistributes the shares.
• In a cross-purchase agreement, the remaining owners agree to purchase the ownership interest of the departing owner. Each remaining owner purchases a portion of the departing owner's shares, based on their ownership percentage in the company. This type of agreement can become complex if there are many owners or if there are substantial differences in ownership percentages. Life insurance policies are often used to fund cross-purchase agreements, with each owner taking out a policy on the other owners.

Key Man Life Insurance For Business Protection

This insurance provides coverage for businesses with a key staff member or principal whose demise or absence can disrupt business activities. The business is responsible for paying premiums to the insurance company. The business becomes the insurance policy beneficiary if the person's death occurs. Michigan key man life insurance policy provides a financial safety net to a business when the key man's death occurs. The business will then use the received funds to mitigate the absence of the individual, by finding a replacement and implementing various strategies to keep the business running.

Contact a Michigan-licensed insurance agent to evaluate your business needs. An agent can also help you get multiple commercial life insurance policy quotes online so you can pick the most suitable and affordable policy.

What is Specialty Business Insurance?

Specialty insurance as a group provides a variety of coverages to Michigan businesses that are not covered by standard insurance policies. Frequently, specialty business insurance is designed for a specific use, property type, or type of unusual loss.

Specialty coverages can be used to protect a Michigan business in different ways:

• High-risk businesses and professions may require special insurance coverage, such as medical practitioners, financial advisors, construction companies, and businesses associated with sports activity liabilities.
• Occasional special use equipment - businesses that use boats, classic cars, and recreational facilities likely need specialty insurance.
• Exotic or costly personal items - businesses that sell or produce expensive or exotic personal items, such as coins, artworks, jewelry, and documents, can use specialty business insurance to protect their operations.

To find the appropriate insurance coverage for your business, it is important that you contact a Michigan-licensed commercial insurance agent.

Common types of specialty insurance in Michigan include:

• Professional Liability coverage is considered specialty insurance because the coverage is tailored for the specific exposures of the insured profession. For example: Medical Malpractice insurance - for the medical professionals, and Errors & Omissions (E&O) insurance for professionals whose professional advice may lead to losses for their clients.
• Ocean/Marine Insurance - This type of insurance can be used to protect the goods that are transported on the water. It can be used to protect a variety of types of goods depending on the transportation method used. If the business ships goods on the rivers and lakes - it needs Ocean marine insurance.
• Flood Insurance is designed to cover only one particular and unusual specialized risk, and is therefore a specialty-type coverage.
• Special Event Insurance - Event insurance can be useful to businesses holding large events, such as conferences or festivals. This insurance can also cover the equipment and facilities used during such events.
• Cyber Liability Insurance - One of the most important factors businesses need to consider when protecting their intellectual property in stored or managed data is cyber liability insurance. This type of insurance can protect employees and customers from the damages caused by a data breach.
• Commercial umbrella insurance policy - This can protect a business from the liability claims for the amounts in excess of liability coverages of other insurance policies a business may have. It supplements all other “primary” liability coverages.
• Kidnap and Ransom Insurance - Workers in areas prone to kidnapping may also require kidnap and ransom insurance. This type of insurance can be used to protect their families and employees if they are abducted.
• Directors and Officers Liability Insurance - This policy can be used to protect high-ranking individuals and organizations from damages caused by lawsuits.
• Travel Insurance - This can protect a business's employees and clients during their trips. This type of insurance can be used to cover the expenses associated with traveling.

What is Business Hazard Insurance in Michigan?

In Michigan, business hazard insurance is a type of business property insurance that protects a company's owned or rented building. The two primary types of business hazard insurance in Michigan include:

• Commercial property policy - This insurance protects your business assets against various risks, such as natural disasters, fire, and theft. Many companies, such as retailers, service-focused organizations, and manufacturers, carry this type of insurance. It is usually bundled with other forms of insurance coverage like commercial general liability insurance depending on the business's exposure to risk.
• Business owners policy (BOP) - A business owner's policy combines all of the necessary insurance coverages like liability and property insurance coverage into one package. This type of insurance is usually sold at a lower premium than the cost of the individual policies. It can help protect a company from various claims, such as fire, theft, and other covered disasters in the policy.

The most common natural disasters that strike businesses in Michigan are:

• Floods
• Severe storms
• Winter storms
• Wildfires
• Power outages
• Tornadoes

Before you start shopping for business hazard insurance, it is important that you speak with a Michigan-licensed commercial agent. The agency can help you evaluate the various commercial insurance quotes and pick the right coverage for your business at an affordable cost.

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