Find the Best Business Insurance Options in Michigan
You may be drawn to open a business in Michigan for many reasons, or perhaps you already own one. Either way, you'll need to make sure your company is protected by a business insurance policy. A lack of coverage can leave you in severe financial trouble after just one incident. However, having business insurance in place can help your business stay afloat following a disaster.
Michigan is home to more than 873,700 small businesses, and its 1.9 million small business employees also need coverage. Luckily, an independent insurance agent in Michigan can help your business get the protection it needs against many threats, including to its employees. But until then, here's a deep dive into Michigan business insurance requirements and more.
Best Business Insurance Companies in Michigan
You could find business insurance from just about any carrier in Michigan. However, some insurance companies offer better coverage and more affordable rates. We built this list of only the best business insurance companies in Michigan to help you on your quest for coverage.
- Liberty Mutual: Liberty Mutual sells many kinds of business insurance and personal coverages. Liberty Mutual is also a Fortune 500 company with excellent ratings from AM Best and the Better Business Bureau (BBB) and offers 24/7 claims reporting.
- The Hanover: The Hanover has an extensive catalog of business insurance and personal coverages. The insurance company has outstanding ratings from both AM Best and the BBB and offers 24/7 claims reporting.
- Stillwater: Stillwater also has a large business and personal insurance product catalog. The insurance company is highly rated by AM Best and the BBB and offers 24/7 claims reporting.
- pomi: pomi, too, offers business insurance and personal products. The insurance company has excellent ratings from AM Best and the BBB and provides online claims reporting.
A Michigan independent insurance agent can help you get equipped with all the business insurance you need from an outstanding local carrier.
Michigan Business Insurance Requirements
A workers' compensation insurance policy is required for businesses in Michigan that employ at least three workers at once, or one employee that works at least 35 hours per week for 13 weeks or longer. This is the type of business insurance mandated by the state, but others are still highly recommended to add to your policy. If your business has company vehicles, you'll want to look into commercial auto coverage to protect them. Also, having commercial general liability insurance can reimburse your business after a lawsuit. Further, you may consider getting cyber liability insurance if your business uses computers or the Internet, which is true of almost all businesses today.
Mandatory Business Insurance in Michigan:
Optional Business Insurance in Michigan:
- Cyber liability insurance
- Professional liability insurance
- Business income insurance
- Commercial auto insurance
- Commercial property insurance
- Commercial general liability insurance
A Michigan independent insurance agent can help you build the right business insurance policy for your company.
What Business Insurance Covers in Michigan
The coverage included in your Michigan business insurance policy is customizable. So your policy will cover whatever you design it to. You'll want to consider getting coverage for lawsuits, company vehicles, workers, company property, sensitive data and records, unexpected closures, and more. A Michigan independent insurance agent can help recommend the exact types of coverage you should put into your business insurance policy.
Liability Coverage Options for Small Businesses in Michigan
Without liability coverage, your Michigan business would have to eat lawsuit costs out of its own pocket. These can be devastating and even lead to bankruptcy if you're not prepared. That's why it's critical to at least consider purchasing the following protections:
- Cyber liability insurance: This can pay for lawsuit expenses and other costs associated with data breaches and other cyber incidents that may expose or distribute private data like credit card records.
- Professional liability insurance: This can pay for the costs of third-party lawsuits if a claim of improper or inaccurate advice or services performed by your business gets filed against you.
- Commercial general liability insurance: This can pay for lawsuits related to third-party claims of bodily injury or personal property damage against your business.
Your Michigan independent insurance agent can help you get covered by all the liability insurance your business needs.
Property Coverage Options for Small Businesses in Michigan
Having protection for physical property can help your business get reimbursed for repair and replacement costs. Without this coverage, you'd be on the hook to pay for repair or replacement out of your business's pocket. Consider adding this coverage to your business insurance policy:
- Commercial property insurance: This can pay for repair or replacement of business property like inventory and physical structures, including office buildings, after a covered disaster like theft or fire.
Your Michigan independent insurance agent will help you get all the commercial property coverage you need.
Other Insurance Options for Small Business Owners in Michigan
You may need to add more coverage to your business insurance policy in Michigan for it to be complete. The additional coverage you need will depend on the type of business you run. Look into the following options to add to your policy:
- Business income insurance: If your business must close down temporarily after an incident like a fire, this coverage can provide a continued revenue stream and continue to pay employee wages during this time.
- Commercial auto insurance: If you have company vehicles, this coverage can reimburse for damage, etc., following incidents like vandalism, theft, lawsuits, accidents, and more.
A Michigan independent insurance agent will help you find all the additional types of coverage your business insurance policy lacks.
Average Cost of Business Insurance in Michigan
Business insurance costs in Michigan vary just as much as the coverages included in each policy. So it's tough to offer an average figure. Larger businesses with more employees that need more coverage will have to pay more for their policies. Businesses in cities with higher crime rates or greater natural disaster damage risk will also pay more for coverage. Finally, businesses in inherently risky industries like construction will also have to pay more for business insurance.
How does your city measure up to the national average?
Number of businesses in the US: 30,819,176
Burglary rate per 1,000 residents in the US: 3.76
Auto theft rate per 1,000 vehicles in the US: 2.29
| City | No. of businesses | Burglaries / 1,000 people | Auto thefts / 1,000 cars |
| Adrian | 1,270 | 4.62 | 0.84 |
| Ann Arbor | 11,982 | 1.6 | 1.12 |
| Birmingham | 4,493 | 0.93 | 0.33 |
| Brighton | 1,282 | 1.04 | 0.39 |
| Charlotte | 687 | 2.2 | 1.32 |
| Dearborn | 10,519 | 2.14 | 2.83 |
| Detroit | 61,868 | 10.28 | 10.38 |
| East Lansing | 2,542 | 2.36 | 3.42 |
| Novi | 6,217 | 0.34 | 0.44 |
How Does Your Michigan City Measure Up?
Commercial property: Businesses in Charlotte must have protection for any physical buildings like storefronts and offices, as well as for inventory. Theft, fire damage, and other disasters could leave you in need of property repair or replacement, which this coverage can reimburse your business for.
Commercial auto: Businesses in Charlotte also must have special protection for company vehicles like delivery vans against a number of disasters. Accidents, lawsuits, windshield breaks, theft, and other incidents can leave your business with significant expenses that can be reimbursed by this type of coverage.
Workers' compensation: Businesses in Charlotte with employees must be equipped with protection for their teams. This coverage can pay for medical treatment for employees that get injured or ill due to their workplace or job duties. These employees and their families cannot sue the business for related incidents, as long as it provides workers' comp.
Based on a $100,000 per year payroll, here are average workers' comp costs for two of Charlotte's leading industries:
Manufacturing Industry: $3,450/year
Retail Trade Industry: $1,310/year
Commercial property: Businesses in Clarkston must have protection for any physical buildings like storefronts and offices, as well as for inventory. Theft, fire damage, and other disasters could leave you in need of property repair or replacement, which this coverage can reimburse your business for.
Commercial auto: Businesses in Clarkston also must have special protection for company vehicles like delivery vans against a number of disasters. Accidents, lawsuits, windshield breaks, theft, and other incidents can leave your business with significant expenses that can be reimbursed by this type of coverage.
Workers' compensation: Businesses in Clarkston with employees must be equipped with protection for their teams. This coverage can pay for medical treatment for employees that get injured or ill due to their workplace or job duties. These employees and their families cannot sue the business for related incidents, as long as it provides workers' comp.
Based on a $100,000 per year payroll, here are average workers' comp costs for two of Clarkston's leading industries:
Manufacturing Industry: $3,450/year
Educational Services Industry: $270/year
Commercial property: Businesses in DeWitt must have protection for any physical buildings like storefronts and offices, as well as for inventory. Theft, fire damage, and other disasters could leave you in need of property repair or replacement, which this coverage can reimburse your business for.
Commercial auto: Businesses in DeWitt also must have special protection for company vehicles like delivery vans against a number of disasters. Accidents, lawsuits, windshield breaks, theft, and other incidents can leave your business with significant expenses that can be reimbursed by this type of coverage.
Workers' compensation: Businesses in DeWitt with employees must be equipped with protection for their teams. This coverage can pay for medical treatment for employees that get injured or ill due to their workplace or job duties. These employees and their families cannot sue the business for related incidents, as long as it provides workers' comp.
Based on a $100,000 per year payroll, here are average workers' comp costs for two of DeWitt's leading industries:
Public Administration Industry: $130/year
Professional, Scientific, and Technical Services Industry: $85/year
Commercial property: Businesses in Fenton must have protection for any physical buildings like storefronts and offices, as well as for inventory. Theft, fire damage, and other disasters could leave you in need of property repair or replacement, which this coverage can reimburse your business for.
Commercial auto: Businesses in Fenton also must have special protection for company vehicles like delivery vans against a number of disasters. Accidents, lawsuits, windshield breaks, theft, and other incidents can leave your business with significant expenses that can be reimbursed by this type of coverage.
Workers' compensation: Businesses in Fenton with employees must be equipped with protection for their teams. This coverage can pay for medical treatment for employees who get injured or ill due to their workplace or job duties. These employees and their families cannot sue the business for related incidents, as long as it provides workers' comp.
Based on a $100,000 per year payroll, here are average workers' comp costs for two of Fenton's leading industries:
Manufacturing Industry: $3,450/year
Professional, Scientific, and Technical Services Industry: $85/year
Commercial property: Businesses in Flushing must have protection for any physical buildings like storefronts and offices, as well as for inventory. Theft, fire damage, and other disasters could leave you in need of property repair or replacement, which this coverage can reimburse your business for.
Commercial auto: Businesses in Flushing also must have special protection for company vehicles like delivery vans against a number of disasters. Accidents, lawsuits, windshield breaks, theft, and other incidents can leave your business with significant expenses that can be reimbursed by this type of coverage.
Workers' compensation: Businesses in Flushing that have employees must be equipped with protection for their teams. This coverage can pay for medical treatment for employees who get injured or ill due to their workplace or job duties. These employees and their families cannot sue the business for related incidents, as long as it provides workers' comp.
Based on a $100,000 per year payroll, here are average workers' comp costs for two of Flushing's leading industries:
Manufacturing Industry: $3,450/year
Retail Trade Industry: $1,310/year
Commercial property: Businesses in Grosse Pointe must have protection for any physical buildings like storefronts and offices, as well as for inventory. Theft, fire damage, and other disasters could leave you in need of property repair or replacement, which this coverage can reimburse your business for.
Commercial auto: Businesses in Grosse Pointe also must have special protection for company vehicles like delivery vans against a number of disasters. Accidents, lawsuits, windshield breaks, theft, and other incidents can leave your business with significant expenses that can be reimbursed by this type of coverage.
Workers' compensation: Businesses in Grosse Pointe that have employees must be equipped with protection for their teams. This coverage can pay for medical treatment for employees who get injured or ill due to their workplace or job duties. These employees and their families cannot sue the business for related incidents, as long as it provides workers' comp.
Based on a $100,000 per year payroll, here are average workers' comp costs for two of Grosse Pointe's leading industries:
Retail Trade Industry: $1,310/year
Professional, Scientific, and Technical Services Industry: $85/year
Commercial property: Businesses in Holt must have protection for any physical buildings like storefronts and offices, as well as for inventory. Theft, fire damage, and other disasters could leave you in need of property repair or replacement, which this coverage can reimburse your business for.
Commercial auto: Businesses in Holt also must have special protection for company vehicles like delivery vans against a number of disasters. Accidents, lawsuits, windshield breaks, theft, and other incidents can leave your business with significant expenses that can be reimbursed by this type of coverage.
Workers' compensation: Businesses in Holt with employees must be equipped with protection for their teams. This coverage can pay for medical treatment for employees who get injured or ill due to their workplace or job duties. These employees and their families cannot sue the business for related incidents, as long as it provides workers' comp.
Based on a $100,000 per year payroll, here are average workers' comp costs for two of Holt's leading industries:
Manufacturing Industry: $3,450/year
Public Administration Industry: $130/year
Commercial property: Businesses in Mt. Pleasant must have protection for any physical buildings like storefronts and offices, as well as for inventory. Theft, fire damage, and other disasters could leave you in need of property repair or replacement, which this coverage can reimburse your business for.
Commercial auto: Businesses in Mt. Pleasant also must have special protection for company vehicles like delivery vans against a number of disasters. Accidents, lawsuits, windshield breaks, theft, and other incidents can leave your business with significant expenses that can be reimbursed by this type of coverage.
Workers' compensation: Businesses in Mt. Pleasant with employees must be equipped with protection for their teams. This coverage can pay for medical treatment for employees who get injured or ill due to their workplace or job duties. These employees and their families cannot sue the business for related incidents, as long as it provides workers' comp.
Based on a $100,000 per year payroll, here are average workers' comp costs for two of Mt. Pleasant's leading industries:
Educational Services Industry: $270/year
Accommodation and Food Services Industry: $1,690/year
Commercial property: Businesses in Ortonville must have protection for any physical buildings like storefronts and offices, as well as for inventory. Theft, fire damage, and other disasters could leave you in need of property repair or replacement, which this coverage can reimburse your business for.
Commercial auto: Businesses in Ortonville also must have special protection for company vehicles like delivery vans against a number of disasters. Accidents, lawsuits, windshield breaks, theft, and other incidents can leave your business with significant expenses that can be reimbursed by this type of coverage.
Workers' compensation: Businesses in Ortonville with employees must be equipped with protection for their teams. This coverage can pay for medical treatment for employees who get injured or ill due to their workplace or job duties. These employees and their families cannot sue the business for related incidents, as long as it provides workers' comp.
Based on a $100,000 per year payroll, here are average workers' comp costs for two of Ortonville's leading industries:
Manufacturing Industry: $3,450/year
Retail Trade Industry: $1,310/year
Commercial property: Businesses in Rogers City must have protection for any physical buildings like storefronts and offices, as well as for inventory. Theft, fire damage, and other disasters could leave you in need of property repair or replacement, which this coverage can reimburse your business for.
Commercial auto: Businesses in Rogers City also must have special protection for company vehicles like delivery vans against a number of disasters. Accidents, lawsuits, windshield breaks, theft, and other incidents can leave your business with significant expenses that can be reimbursed by this type of coverage.
Workers' compensation: Businesses in Rogers City with employees must be equipped with protection for their teams. This coverage can pay for medical treatment for employees who get injured or ill due to their workplace or job duties. These employees and their families cannot sue the business for related incidents, as long as it provides workers' comp.
Based on a $100,000 per year payroll, here are average workers' comp costs for two of Rogers City's leading industries:
Accommodation and Food Services Industry: $1,690/year
Manufacturing Industry: $3,450/year
Popular Questions about Business Insurance in Michigan
Business insurance costs vary in Michigan, like anywhere else. Your policy's cost will depend on a number of factors, like your business's coverage needs, its size and location, its number of employees, and its claims history.
Every business in Michigan that has at least three employees at once or one employee that works more than 35 hours per week for at least 13 weeks must provide workers' compensation by state law.
What your business insurance covers in Michigan depends on which coverages you select to go into your policy. If you want coverage for your company vehicles, add commercial auto coverage to your policy. An independent insurance agent in Michigan can help you make sure you get every type of coverage you need.
Small business liability insurance in Michigan covers the costs of lawsuits if a third party sues your company for claims of bodily injury or personal property damage.
Yes, small business health insurance plans are available for businesses in Michigan that have 50 employees or fewer. You can expect to pay about $116 per employee per year for this coverage.
Our research found that Liberty Mutual, The Hanover, Stillwater, and pomi are the best business insurance companies in Michigan this year. We chose these carriers based on coverage and discount options, policy rates, customer service reviews, financial strength ratings, years in business, and more.
What kind of coverage your business needs in Michigan depends on its unique operations. Your business may require commercial auto coverage, workers' comp, business income coverage, general liability coverage, and professional liability coverage, while others will require different types of coverage.
Yes, there are a couple of exceptions to the workers' comp requirements in Michigan, including farm workers and independent contractors. These employees are not required to be covered by workers' comp.
An independent insurance agent in Michigan can help you get the coverage you need, fast. These agents shop and compare policies from multiple business insurance companies in Michigan for you. They'll present you with the results that offer only the best blend of coverage and cost.
Do You Know What Your Business Insurance Covers in Michigan?
https://www.findlaw.com/state/michigan-law/michigan-workers-compensation-laws.html
https://www.ehealthinsurance.com/michigan-health-insurance/health-plans/group-medical