Are you a business owner in Michigan? If so, we want to give you the knowledge you need to protect your business. Here’s what you need to know about general liability insurance in Michigan.
Best General Liability Insurance in Michigan Near You:
- Best Overall for General Liability Insurance: The Hartford
- Best for Small Businesses: Hiscox
- Best for Business Owner’s Policy: Progressive
- Best for Affordable Coverage: biBERK
Best General Liability Insurance Options in Michigan
Insurance quotes are important tools that can help you find the right insurance company for your business. Here are some of the top options in your state.
Best Overall for General Liability Insurance: The Hartford
The Hartford can handle the general liability insurance needs of a wide range of businesses. If you’re a low-risk small business, you can easily get a quote and purchase an affordable policy. The Hartford also offers complex liability solutions for businesses that have more exposure to high-hazard liabilities.
It recommends this type of insurance solution for businesses such as manufacturers, whole-distributors and importers. If you do run a higher-hazard business, you can get access to The Hartford’s Risk Engineering team.
Your business can work with this team to receive one-on-one risk management consultations and safety seminars.
Best for Small Businesses: Hiscox
Hiscox focuses on offering smart small business insurance solutions. Its general liability insurance coverages are very thorough, which can be important for small businesses that want to keep their insurance policies simple instead of purchasing multiple policies that offer similar coverage.
A general liability insurance policy from Hiscox offers standard coverages such as 3rd-party bodily injury property damage and advertising injury. It also includes electronic data liability coverage and some reimbursement if your business suffers a financial loss while you help Hiscox investigate a claim against your business.
For small businesses that perform work out of the United States, Hiscox offers worldwide insurance coverage as part of its general liability policies. This means that you can receive coverage for claims that occur anywhere in the world as long as the claim is filed in the United States, a United States territory or Canada.
Best for Business Owner’s Policy: Progressive
Progressive makes it simple for your business to combine your general liability insurance policy with property coverage. The coverages for the general liability portion of Progressive’s BOP are the same as it is for a standalone general liability insurance policy. It includes protection against liabilities such as 3rd-party bodily injury and property damage, advertising injury and product-related claims.
The property coverage portion of this policy offers coverage for commercial property and mobile property that is owned by and used for your business. As with standalone general liability insurance policies, a BOP from Progressive does not offer coverage for your employees.
Best for Affordable Coverage: biBERK
biBERK offers a unique affordable business solution that eliminates some of the fees that may come with purchasing an insurance policy. It does this by directly insuring your business instead of using an insurance broker. By purchasing a policy from biBERK, you can avoid paying broker fees and pay up to 20% less than you would if you purchased a policy from 1 of its competitors.
biBERK also offers the option to speak with its licensed insurance experts to get help with choosing your coverage options. You’ll notice that biBERK strives to be your partner. It ensures you have the coverage your business needs now and allows room to expand your coverage as your business grows. General liability policies from biBERK can offer coverage for 3rd-party bodily injury and property damages, personal injury, advertising injury and product liability.
Cost of General Liability Insurance in Michigan
The cost of your general liability insurance policy can vary depending on a wide range of factors but some insurance companies can give you examples of costs. Progressive has reported that new general liability insurance policies purchased through its Progressive Advantage Business Program in 2019 costs an average of $53 per month.
Here are a few factors that help determine the cost (also known as the premium) of a policy for your business:
- The level of exposure to risk your business faces: This is largely dependent on the industry you work in and your day-to-day business operations. For example, a business that operates out of a standard office environment where customers don’t often visit usually isn’t exposed to many risks. However, if your business operations involve frequent interactions with customers and handling the property of customers, your business faces a higher amount of risk.
- The location of your business: If you live in a highly populated area, for example, your premium may be higher than if the same business were in a rural setting. The same is true if your business is located in an area that has a history of a large number of claims.
- Number of employees: Much like a workers’ comp insurance policy, the number of employees your business has can impact the cost of your general liability insurance policy. In this case, the fewer employees your business has, the less amount of risk your employees expose your business.
Feeling nervous about the cost of a general liability insurance policy? You’ll be relieved to know that there are some ways you may be able to lower your premium. Some examples:
- You can ask your insurance company if it offers any discounts. Some companies may offer discounts if you have an already-existing policy or if you’re able to pay for your policy in full.
- Ask your insurance company about bundling options. A BOP is 1 example of a bundled policy because it combines 2 separate types of business insurance into a single policy.
- Carefully review aspects such as your coverage limits and deductible. Your coverage limits are the maximum amount of financial coverage your business will have for general liability claims. You’ll want to make sure you have enough to cover your business, but it’s also important not to purchase more than you need. Lowering the coverage limit of your policy can also lower your premium. Your deductible is the amount of money your business will be required to pay out of pocket for covered claims before your policy will contribute to the costs of covered claims. If you increase your deductible, you may be able to lower the amount of money you’ll pay to keep your policy active.
What Does General Liability Insurance Cover?
Your general liability insurance should offer several types of coverage that can benefit your business. Here are some common coverages that are included with a general liability insurance policy:
- Bodily injury to a 3rd party: If someone who is not an employee of your business gets injured on the business premises, you’ll be able to use your general liability coverage. This will protect your business if the injured person sues your business. It can also cover the medical expenses of the injured person while they get treated.
- Third-party property damage: Your general liability insurance policy should also offer coverage for damage to someone else’s property. Again, this coverage only applies to non-employees of your business. If your business is liable for the damage to someone else’s property, you can use your general liability coverage to cover the expenses of repairing or replacing the damaged property.
- Damage to rented property: If your business rents buildings, structures or land, you may want to check to be sure your general liability insurance policy offers this coverage. Damage to rented property coverage will protect your business from financial loss if your business is liable for damages to rented property. To be held liable, your business needs to be responsible for the action that caused damage. General liability insurance policies do not cover damage that occurs due to weather events such as wind storms and lightning strikes. You will need a different type of business insurance for that coverage.
- Advertising injury: Also known as reputational harm, this coverage can protect your business if it faces a lawsuit related to libel, slander or copyright. If this happens, you can use your general liability insurance policy to help pay for the legal expenses as you defend your business against the lawsuit.
If it sounds like your business could benefit from a general liability insurance policy, the next step is to get a quote. Getting a quote is a quick, free and easy way to explore how much general liability insurance could cost your business. Find the insurance company that offers your business the best coverage and rest easy knowing that your business is protected.