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FAQs from Michigan business owners
Plain-English answers to the questions we hear from contractors, retailers, hospitality operators, and other Michigan businesses. All coverage and pricing subject to underwriting.
How is commercial insurance priced?
Carriers look at your industry classification, revenue, payroll, years in business, location, claim history, and the specific operations you perform. A roofer, a restaurant, and an accounting firm all underwrite very differently. Your agent will gather the right details, shop the market, and explain what is driving the number.
Should I buy a Business Owners Policy (BOP) or separate policies?
A BOP bundles General Liability and Property into one package and is usually the most cost-effective starting point for small and mid-sized businesses. Larger or more complex operations may need standalone policies and additional coverages (commercial auto, workers' comp, cyber, etc.). We will tell you honestly which structure fits.
Is workers' compensation required in Michigan?
In most cases, yes — if you have employees (with a few narrow exceptions), Michigan requires workers' compensation coverage. Rates depend on your industry classification, payroll, and claim history. We help businesses across construction, hospitality, retail, agriculture, and services set this up correctly.
What does builders risk insurance cover?
Builders risk covers a structure during construction or renovation — against fire, theft, vandalism, and many weather perils. It is different from general liability (which covers third-party bodily injury or property damage caused by your work). Limits should match the projected completed value of the project, plus soft costs. We do a lot of builders risk for contractors across Michigan.
Do I need cyber liability insurance?
If you take payments, store customer data, send invoices by email, or rely on any cloud software — yes, you have cyber exposure. Cyber liability covers breach response, ransomware, social engineering fraud, and business interruption from a cyber event. The premium is small relative to the cost of an uncovered claim.
What is the difference between General Liability and Professional Liability?
General Liability (GL) covers third-party bodily injury and property damage that happens because of your operations — a customer slips, a tool damages a client's property. Professional Liability (Errors & Omissions) covers claims that your advice or service caused a financial loss. Many businesses need both.
How do I start an employee benefits program?
Our Employee Benefits team helps Michigan businesses design group medical, dental, vision, life, and disability programs that you can actually afford and that your employees value. We can also help with HSA/HRA strategy, voluntary benefits, and Medicare for owner-employees nearing 65. Start with a conversation.
Have a different question?
Call us — you will reach a real local agent.