Across Northern Michigan—whether you’re a contractor, manufacturer, healthcare organization, municipality, or growing family-owned business—expansion usually means one thing:
New construction, renovation, or both… often while staying operational.
That’s exactly where insurance mistakes become expensive.
At Top O’ Michigan Insurance Solutions, we routinely see Northern Michigan businesses assume their existing coverage will adapt automatically. It doesn’t. And when it fails, it usually fails during construction.
Before you expand, here’s what you need to know, especially if Builder’s Risk coverage is part of the conversation.
Expansion typically involves:
New buildings or additions
Remodeling existing structures
Contractors and subcontractors on-site
Materials staged or stored on-site
Continued operations with employees and customers present
Most commercial policies were not designed for this environment.
This is the most common—and most costly—assumption.
Most standard property policies exclude or limit:
New construction
Unfinished structures
Building materials awaiting installation
Temporary structures
If a fire, theft, or wind loss occurs mid-project, you may discover too late that nothing was insured.
Builder’s Risk coverage is often required to properly insure:
New buildings and additions
Renovation work
Materials on-site or in transit
Project-specific risks
In Northern Michigan, many projects occur during peak seasons—tourism, healthcare demand, construction season, or manufacturing cycles.
Remaining open during construction creates elevated exposure:
Increased slip-and-fall risk
Fire protection system impairments
Dust, vibration, and water damage
Public interaction with work zones
If your insurer wasn’t notified, claims tied to construction activity may be denied or restricted.
Northern Michigan projects often involve multiple local contractors and subs.
Common issues:
Certificates collected but not reviewed
Missing additional insured status
Inadequate limits
No waivers of subrogation
When risk transfer breaks down, the property owner becomes the default defendant.
This one surprises business owners the most.
Some General Liability policies contain exclusions or limitations related to construction, such as:
New construction or major renovation exclusions
Damage to the part of property being worked on ("your work" / "your product")
Contractual liability limitations if agreements aren’t written properly
Injury claims tied to construction operations not disclosed to the carrier
If construction activities materially change your operations and the insurer wasn’t informed, coverage disputes become far more likely.
Expansion increases:
Foot traffic
Contractor exposure
Claim severity
Many organizations should temporarily—or permanently—adjust General Liability and Umbrella limits during construction.
Expansion usually increases dependence on uninterrupted operations.
Common gaps include:
Business income limits based on old revenue
No coverage for construction-related delays
Insufficient extra expense limits
A single loss during construction can delay opening, disrupt operations, and strain cash flow.
Expansion is a sign of success—but it’s also when insurance assumptions fail.
If you’re planning to build, remodel, or expand in Northern Michigan, Builder’s Risk and liability planning should be part of the conversation before construction begins, not after a loss.
At Top O’ Michigan Insurance Solutions, we help Northern Michigan businesses expand with clarity—not coverage gaps.
If this article helped you think differently about insurance, it’s doing its job.
If you’re comparing agencies or questioning your current coverage, we’re happy to help — even if you don’t switch.
No pressure. No hard sell. Just clarity.
Now you’re either currently investing a lot of money into your insurance policies or getting closer to making this decision. We don’t want you to make any mistakes with a decision of this magnitude. So instead of basing this huge decision on a quoted number on the computer screen or a piece of paper – we thought you’d like to know that you can work with one of the knowledge members of our team so that you can become well educated on your insurance before buying.
Want to stay up to date on the latest community and insurance news? You can find more on important topics on our blog.
About the Author
Tyler Bartosh (Connect with me on LinkedIn)
A third-generation insurance agency owner and agent since 2007, Tyler Bartosh is the consummate “insurance geek,” using his passion for business, knowledge of insurance, and advocacy for clients to help serve as the expert buyer of insurance. He helps businesses implement risk management strategies that save both time and money, so those resources can be put towards other initiatives in your company.
Away from his career in insurance, he enjoys spending time with his family & friends, volunteering throughout the community, golf, fishing, snowboarding, hiking and virtually anything outdoors and traveling to see live music. Tyler has a wife Emily (who is also an underwriter in the insurance industry), their dog Lucy and a baby girl, Sophie Constance.
About Top O' Michigan Insurance Solutions:
At Top O’ Michigan Insurance Solutions, we pride ourselves on using our skills to provide clients with competitive pricing, stability and understanding, and peace of mind. With seven locations throughout Michigan and 24/7 client access, our team is your 'expert buyer' of insurance for home, auto, farm, boat, motorcycle, business owners, workers compensation, bonds, life and health, employee benefits and more.
We will provide unparalleled and caring service to our clients through our knowledgeable staff and give back to our employees, agency, industry and our communities. Part of our mission is to give back to the Michigan communities we serve. This is something we take action on through We Care and you can learn more about our community outreach at TOMIA247.com/WeCare.
Disclaimer: This Blog/Web Site does not provide insurance or legal advice. This site is for educational purposes only as well as to provide you with general information and a general understanding of insurance, not to provide specific legal advice or specific contract advice. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute a client relationship.
The information on this Blog/Web Site is not intended to be a substitute for professional insurance or legal advice. Always seek the advice of a licensed agent in your state pertaining to insurance and legal issues.
OSHA – Construction Industry Compliance Assistance
Construction safety guidance and hazard info for jobsite safety. OSHA Construction Industry Compliance Assistance Quick Start Page
NFPA – Standard for Safeguarding Construction, Alteration, and Demolition Operations
NFPA’s official standard development page explaining NFPA 241 (fire prevention measures during construction). NFPA 241 Standard for Safeguarding Construction Operations
IRMI – Builders Risk Protective Safeguards & Conditions
Expert commentary (practical insurance industry educational article on Builder’s Risk conditions). IRMI Builders Risk Protective Safeguards Update
Michigan Department of Licensing and Regulatory Affairs – Bureau of Construction Codes
The LARA construction codes page (licensing/permitting info non-competitive). Michigan LARA Bureau of Construction Codes
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