Starting a Michigan business can bring new opportunities. It can also bring risks that may not be clear at first. A customer injury, damaged equipment or a vehicle crash could disrupt your work and strain your budget.
The insurance you may need can depend on your services, property, employees and daily activities. In some situations, several policies may offer broader protection.
What risks does your business face?
Your insurance needs may differ from those of another Michigan business. A consultant who works from home may have different concerns than a restaurant owner, contractor or retail shop owner. Still, any business could face a claim, property loss or a pause in operations.
You may want to consider policies that fit the risks tied to your work:
- General liability insurance may help with claims involving customer injuries, property damage or certain personal harm.
- Professional liability insurance may help if a client claims your work, service or advice caused a financial loss.
- Commercial property insurance may help cover business equipment, inventory, furniture and other property after a covered loss.
- Business interruption insurance may help with some income losses and ongoing costs after a covered event stops your work for a time.
- Commercial auto insurance may apply if you use cars, trucks or vans for deliveries, service calls or other business tasks.
Cyber insurance may also merit review if you collect or store customer data. Product liability coverage may help if you make or sell products. Umbrella coverage may offer added liability protection when a claim exceeds the limits of another policy.
What coverage might your employees need?
Hiring employees can create new insurance concerns. Under Michigan’s Workers’ Disability Compensation Act, some private employers must secure workers’ compensation coverage. Michigan Compiled Laws generally apply when you regularly employ three or more workers. It may also apply if you employ one or more workers for at least 35 hours each week for 13 weeks or longer during the prior 52 weeks.
Workers’ compensation may help cover medical care and lost wages after a work-related injury or illness. As your team grows, health insurance, disability coverage and employment practices liability insurance may also deserve consideration.
Where could your current coverage fall short?
Insurance coverage may fall short when policy limits no longer match rebuilding costs, liability risks or the value of your property. Standard policies may also exclude flood damage, sewer backups, earthquakes and certain wind damage, while jewelry, art and other valuable items may have low payout limits.
If you run a business from home or use personal vehicles for work, your personal insurance may not cover business equipment, client injuries or work-related driving. A policy review may help you identify gaps and consider added coverage, such as endorsements, commercial policies or umbrella insurance.
Build coverage around your business
Your insurance needs may change as you hire employees, buy equipment, sign larger contracts or add services. A review of your policies may reveal gaps that were not clear when you first opened your business.
A legal firm can help you assess potential risks, compare policy options and work with insurance companies to seek appropriate coverage. That support may help you make informed choices as your new Michigan business takes its next steps.