Posted on May 16, 2014
Fondly known as the Great Lakes State and native home to the U.S. automobile industry, Michigan offers business owners a rich legacy in commercial endeavors and ingenuity. Growing a business under tough economic conditions means that every company needs the most protection possible to keep everything going should an unexpected accident or damage occur. Commercial insurance coverage can make the difference by protecting a businesses financial vitality in the event of a lawsuit.
Michigan Liability Coverage
Liability insurance policies offer broad coverage for a wide range of accidents, damage or injuries. These policies protect companies from lawsuits caused by property damage or personal injury to customers or their possessions. If someone is injured because of a product or service provided by a business, they can bring suit against the company. General liability will protect the business from any medical expenses, awards, judgments or settlements that are the result of the claim. In addition, it will also pay for the company's legal defense for the lawsuit. Without proper insurance, a company could be financially devastated by the expense associated with defending against a claim and any ensuing payouts if the claim is awarded. Purchasing liability coverage helps business owners leverage their resources for the most protection available so they can continue running their business without fear of paying out large sums of money out of pocket.
Workers Compensation Coverage
Workers compensation insurance coverage is required in Michigan for employers that have 3 or more employees, or have one or more employees that work at least 35 hours a week for at least 13 weeks of the preceding year. This insurance covers employees who are hurt or become sick during the course of employment, and policies will pay for their medical costs and lost wages while temporarily or permanently disabled.
Michigan business owners can obtain workers comp coverage through private insurance companies licensed to do business in the state. Premium rates are based on a company's industry classification and their past workers compensation claims experience. Companies with more than $200,000 per year in annual premium may choose to self-insure rather than use private carriers for worker's comp insurance.
Michigan businesses need the added protection of commercial property insurance. Business property insurance provides that extra peace of mind so that companies can rest assured knowing that their commercial building and all its contents are covered in case of hazardous weather or accidents. Property insurance coverage can also provide replacement cost should a building and its contents be destroyed by a fire or lightning strike.
An added coverage that appeals to many business owners is business interruption insurance. With heavy snow in winter and severe thunderstorms and tornado potential during the rest of the year, businesses in Michigan can avoid expensive shutdowns when the weather or damage forces closures. If stormy or winter weather keeps businesses closed, this coverage pays the bills to help companies stay in business while inoperable.
Business personal property is typically covered while it is on the business premises, but when certain equipment is used frequently offsite at other locations, an inland marine policy or equipment endorsement to the existing property policy is required.
Commercial Flood Insurance
Flooding is quite common in Michigan due to the heavy rains and snowmelt that occurs each year. Unbeknownst to many business owners, business property insurance does not cover flooding. Commercial flood insurance helps mitigate the risks associated with flood damage so that businesses will be covered for any physical damage should flooding occur. According to the National Flood Insurance Program, the average commercial flood claim is $85,000. Many businesses are unable to absorb this level of damage or loss and therefore, commercial flood insurance can help prevent financial devastation. Through FEMA's National Flood Insurance Program, commercial operations can obtain flood insurance up to $500,000 for buildings and $500,000 for building contents.
Crop Insurance for Michigan Farmers
Farmers in Michigan raise many crops that need protection. With corn, soybeans, beans, apples and even grapes growing in the state's agricultural areas, crop insurance provides farmers with peace of mind. Should severe weather, drought or falling futures price occur, this coverage will provide revenue and/or yield protection that will keep them from financial loss or bankruptcy.
Additional Information on Michigan Insurance