As a business owner in Michigan, nobody knows better than you the risks and challenges that come with owning a business. Commercial insurance helps to make the risks more manageable. It is designed to fit your particular business. What is right for one business may be totally wrong for another. Some types of commercial insurance are beneficial to most businesses and others are required by the state. At High Favor Insurance in Birmingham, MI, we are independent agents who understand the importance of commercial insurance to business health.
Two types of commercial insurance are mandatory in Michigan, workers’ compensation, and commercial auto. Other types of commercial insurance are important to your business even if they are not required.
Workers’ Compensation
If you have employees, all of them who work 35 or more hours per week must be paid benefits if they are injured on the job. Employees must have the ability to receive reasonable and necessary medical care. Most employers provide this with workers’ compensation insurance but it may also be provided through self-insuring.
Commercial Auto Insurance
If your business owns vehicles, you must have commercial auto insurance in the amount of 20/40/10. That is $20,000 in injuries per person, $40,000 per accident, and $10,000 for property damage. This is the lower end of the requirements, it likely isn’t the amount you will want to have,
Coverage not required that you may want to have for your business:
- Business liability insurance
- Business property insurance
- Business income insurance
Business Owners Policy
Many businesses decide to combine business liability and property insurance into one customizable policy know as a Business Owner’s Policy (BOP). This is usually a cost-efficient way to get this coverage.
Business Income Insurance
If your business is not able to operate due to a covered incident, this covers payroll, rent, business income, and any other monthly bills your business has.
Contact High Favor Insurance in Birmingham, MI to discuss your commercial insurance needs.
