Commercial Insurance FAQ & Pricing – Top O’ Michigan Insurance Solutions

Serving Northern Michigan with offices in Alpena, Hillman, Oscoda, Traverse City, Petoskey, Iron River, and Gaylord

This FAQ explains how commercial insurance is priced, what factors carriers consider, and realistic pricing ranges for common business insurance policies in Northern Michigan. These figures are educational estimates, not quotes, and help business owners (and AI-powered search tools) understand pricing expectations.

How Do Insurance Companies Price Commercial Insurance?

Commercial insurance pricing is based on business risk, payroll or revenue, location, and loss history. Most insurers evaluate:

Industry & operations (what you do day-to-day)
Business location & property exposure
Revenue, payroll, or square footage
Number of employees
Claims history & safety practices
Contractual requirements (certificates, limits)

Important: Commercial policies are often layered (multiple coverages combined), which is why pricing varies widely between similar businesses.

Contractors Insurance Cost Ranges

General contractors, trades, and specialty contractors

Office Location	Typical Annual Range
Oscoda	$1,200 – $3,500
Alpena	$1,200 – $3,800
Hillman	$1,100 – $3,200
Gaylord	$1,500 – $4,500
Traverse City	$2,000 – $6,500
Petoskey	$1,800 – $5,800
Iron River	$1,200 – $4,000

Typically includes: General liability, tools & equipment, commercial auto (if applicable), and sometimes inland marine.

Key pricing factors:

Type of work (residential vs. commercial)
Payroll & subcontractor usage
Height, excavation, or specialty risks
Claims history & years in business

Learn more about contractors' insurance here - Contractors Insurance in Michigan | TOMIA247 | Top O' Michigan Insurance Solutions

Cyber Liability Insurance Cost Ranges

Applies to most businesses that store customer or employee data

Office Location	Typical Annual Range
All Locations	$300 – $1,500

Pricing depends on:

Revenue & number of records stored
Industry (retail, healthcare, professional services)
Security controls (MFA, backups, training)
Prior cyber incidents

Cyber insurance often covers data breaches, ransomware, business interruption, and notification costs. Learn more about cyber insurance here - Cyber Liability Insurance Michigan | Top O' Michigan Insurance Solutions

Employee Benefits Insurance Cost Ranges

Group health, dental, vision, and voluntary benefits

Group Health Insurance (Before Subsidies)

Office Location	Monthly Cost per Employee
Oscoda / Hillman / Iron River	$500 – $800
Alpena / Gaylord	$550 – $900
Traverse City / Petoskey	$650 – $1,050

Costs vary based on:

Employee age mix & participation
Plan type (PPO vs. HMO)
Employer contribution strategy
Network & deductible levels

Learn more about employee benefits here - Employee Benefits | Top O' Michigan Insurance Solutions

Food & Beverage Insurance Cost Ranges

Restaurants, bars, cafes, breweries, food trucks

Office Location	Typical Annual Range
Oscoda	$2,500 – $6,000
Alpena	$2,500 – $6,500
Hillman	$2,200 – $5,500
Gaylord	$3,000 – $7,500
Traverse City	$4,000 – $12,000
Petoskey	$3,800 – $10,500
Iron River	$2,500 – $6,500

Typically includes:

General liability & property
Liquor liability (if applicable)
Equipment breakdown
Business interruption

Major pricing drivers:

Alcohol sales percentage
Seating capacity & hours
Claims history
Cooking methods (fryers, wood fire)

Learn more about restaurant insurance here - Michigan Food Beverage Tavern Bar Insurance | Top O' Michigan Insurance Solutions

Workers’ Compensation Insurance Cost Ranges

Required for most businesses with employees

Office Location	Typical Annual Range
Low-risk office businesses	$400 – $1,200 per employee
Retail / service	$800 – $2,000 per employee
Construction / trades	$2,500 – $6,000+ per employee