There are more than 2,000 businesses in the small city of Allen Park, MI. From large companies like Ford Motor Company, which employs hundreds of people, to sole proprietorships run out of people’s homes, every business in this Downriver community plays an important role in the local economy. Business insurance helps these companies stay profitable in times of trouble.
Independent agents make it easy to find the right business insurance products for your company. These insurance professionals can help you build an affordable policy package that is designed to cover against all the potential risks your company may encounter. Contact an independent insurance agent in or near Allen Park to learn more.
Why Do Businesses in Allen Park Need Liability Insurance?
A customer, vendor, or employee could potentially sue your company. If this happens, the associated costs can be overwhelming, even if the courts end up ruling in your favor. That is why liability coverage is such an important part of every business insurance policy.
Business liability insurance is designed to cover the various expenses related to liability lawsuits, such as court costs, legal defense fees, and financial damages.
You can expect your business insurance policy to include commercial general liability insurance (CGL). It covers against many of the most common liability risks faced by businesses. Two of its main coverage components are:
- Premises liability insurance: This covers third-party injuries, injuries, and damage resulting from accidents on your business property for which your company can be considered responsible.
- Product liability insurance: This covers third-party injuries, illnesses, and damage resulting from design flaws or defects in products your company produces, sells or promotes.
Most businesses will need additional liability policies in order to be fully covered against all of their potential exposures. The following are some of the commercial liability policies an independent insurance agent in Allen Park may recommend that you include in your business insurance policy package:
- Cyber liability insurance: This covers your business’s liability expenses if criminals install skimmers on your credit card readers or hack into your business’s computer network and steal customer data like financial information, Social Security numbers, or personal details.
- Employment practices liability insurance (EPLI): This covers your business against lawsuits related to accusations of illegal employment practices such as harassment, discrimination, retaliation, and wrongful termination.
- Liquor liability insurance: This covers businesses that serve alcoholic beverages. This is necessary because if an intoxicated patron causes injuries or property damage to others, Michigan’s dram shop laws enable the injured party to sue the business that provided the alcohol if the beverages were provided to a visibly intoxicated adult or to a minor.
- Professional liability insurance: Also referred to as errors & omissions insurance, this insurance covers individuals in professional positions if they are guilty of negligence, errors in judgment, or other professional mistakes that lead to third-party financial losses, injuries, or damage.
A local independent insurance agent can help you determine whether these or any other commercial liability products are appropriate for your Allen Park business.
How Does Property Insurance Protect Allen Park Businesses?
Commercial property insurance is another important part of every business insurance policy package. It is designed to cover loss or damage to your company-owned property, including merchandise, inventory, furniture, supplies, tools, computers, outdoor signs, and more.
Businesses in Allen Park are most at risk for loss or damage caused by accidental fires, property crimes, and severe weather events like tornadoes, severe storms, strong winds, hail, heavy snows, and freezing temperatures. Fortunately, all of these risks are covered by commercial property insurance.
Be aware, however, that commercial property insurance does not cover against floods. When winter snows melt or heavy rains fall in the area, drainage systems can become overwhelmed and waterways like the Rouge and Ecorse rivers can overflow their banks. This can lead to problems with flash flooding for area homes and businesses.
The only way your company can be covered against this risk is if you have included commercial flood insurance in your business insurance policy package. A local independent insurance agent can help you secure an affordable flood insurance policy through the National Flood Insurance Program (NFIP).
You may also want to consider purchasing other supplemental policies such as:
- Inland marine insurance: This covers your company’s portable assets whenever they are in transit or are being stored off-site.
- Boiler & machinery insurance: This covers financial losses related to the mechanical failure of your essential business equipment.
- Bailee's insurance: This covers your customers’ expensive property whenever it is in your business’s custody, care, or control.
Talk to a local independent insurance agent to learn more about these and other business property coverage options.
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Is Business Interruption Insurance a Good Idea in Allen Park, MI?
Tornado activity in the Allen Park area is 37% greater than the national average. One of the worst occurred in 1956 when an F4 twister touched down in the city, injuring 22 and causing hundreds of thousands of dollars in of damage.
Disasters in Michigan
- Number of federally declared disasters in MI since 1953: 42
- Most common reasons for declared disasters: Floods, severe storms, and tornadoes
- Average number of tornadoes in MI per year: 16
Would your business be able to handle the financial repercussions if it were severely damaged by a disaster like a tornado or a structure fire? Your commercial property insurance would be able to cover the cost of replacing damaged property, but what about the weeks or months when you would need to remain closed while you rebuild?
Business interruption insurance provides a solution to this problem. This optional insurance is designed to provide a continuation of income during the times that your business is forced to remain closed for an extended period due to damage caused by a covered event.
Business interruption insurance enables your company to continue paying regular monthly expenses like rent, loan installments, and employee salaries until you are able to resume normal operations. Most policies will provide this coverage for up to one year.
Business interruption insurance isn’t ideal for every company. A local independent insurance agent can help you evaluate whether this coverage is a good fit for your Allen Park business.
Do Businesses in Allen Park Need Worker's Compensation Insurance?
Worker's compensation insurance is designed to cover medical treatment, follow-up care, prescriptions, disability pay, and other expenses related to work-related injuries and occupational illnesses.
The state of Michigan requires virtually all businesses that have at least one employee to carry worker's compensation insurance. Sole proprietors are not considered employees and are not covered by this insurance.
Rates for worker's compensation coverage are based mainly on the types of jobs your employees do and how dangerous the work is. A worker in an automotive manufacturing plant would cost more to insure than a cashier at one of the stores in the Fairlane Green retail center.
A local independent insurance agent can help you find a suitable worker's compensation insurance policy at a competitive price.
What about Employee Benefits for Businesses in Allen Park?
When you are shopping for employee health insurance products, you will find that there are several different policy types available for you to choose from. These can include HMOs, PPOs, and managed care plans with different copays, deductibles, and levels of coverage.
You may therefore find it beneficial to have the guidance of a local insurance professional who can help you find suitable coverage at a competitive price.
Why Work with an Independent Insurance Agent in Allen Park, MI?
Every business has specific insurance coverage needs, and these can vary significantly from one company to the next. That is why insurance companies enable business owners to fully customize their commercial insurance policy packages.
When you are shopping for coverage for your Allen Park business, a local independent agent can help you navigate through your various options and can explain the ins and outs of the many policies that are available to you. Your agent can also save you money by shopping around for the most affordable policies.
Consult an insurance agent near you to start comparing customized business insurance quotes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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