In 2014, there were 856,682 small businesses that employed 1,755,901 people headquartered in Michigan, and nearly 2,700 of these businesses were based in Bay City, MI. While large employers, like Bay Regional Medical Center, S.C. Johnson & Sons and GM Powertrain, dominate the market, many small businesses and independent contractors are thriving in this Saginaw Bay city. No matter how large or small your company, it is important that you protect your investment with a Bay City commercial insurance policy. In 2014 alone, businesses in Michigan collected $12,848,751 in business insurance claims, which highlights how important this coverage is.
Building a comprehensive insurance policy for your business can often be confusing, but you can make the process simple by discussing your coverage needs with an independent insurance agent in the Trusted Choice® network. These agents are able to work with several different reputable insurance companies to help you find the best price for your coverage. Find a Trusted Choice Agent near you to compare Bay City business insurance quotes for policies that have been customized to meet the specific needs of your company.
- According to the 2015 Travelers Business Risk Summary, 60 percent of small-business owners ranked medical cost inflation as their highest concern and more than 30 percent said they felt unprepared to handle this concern.
- According to a national study, 71 percent of product liability awards by the courts amounted to $1 million or more.
- That same study showed that 53 percent of medical malpractice awards by the courts amounted to $1 million or more.
A lawsuit against your company can be extremely expensive. That is why it is so important that your Bay City business insurance include general liability insurance as well as other liability coverage types that are well suited to your business type and industry. These policies shield your business from significant losses by covering your legal defense fees, court costs, financial damages and other associated costs. Your Trusted Choice Agent can further explain your many liability coverage options, including the following:
- Premises liability insurance: This is included in your policy’s general liability coverage. It covers the costs associated with illnesses, injuries or property damage sustained by third parties while on your business premises.
- Product liability insurance: This is also included as part of your general liability coverage. It provides coverage if a product you sell, produce or promote causes illnesses, damage or injuries to others.
- Professional liability insurance/Errors and omissions insurance: This is a standalone policy that covers workers in professional positions against lawsuits brought about because of perceived errors in judgement, failure to act in a timely manner and other professional mistakes. Medical malpractice insurance is a well-known example of this sort of coverage.
Your Trusted Choice Agent may offer other types of liability coverage, such as pollution insurance and commercial auto liability insurance, that are appropriate for your business.
Business Interruption Insurance for Bay City Businesses
- 2014 Gross domestic product (GDP) for U.S.: 2.2%
- 2014 Gross state product (GSP) for Michigan: 2.0%
- The 2014 GSP 0.2% lower than the GDP
If a covered disaster – such as an explosion, uncontrolled fire or tornado – forces you to halt business operations for several weeks or months while repairs are made, the lost income can significantly affect your business finances. Also, if you cannot afford to pay key employees during an extended closure, you may lose them to the competition.
You can avoid this problem by making sure that your Bay City commercial insurance includes business interruption insurance. That way, your company can afford to pay monthly bills and employee salaries during time that you are unable to generate revenue because of a forced closure. This coverage stays in effect until you are able to resume normal business operations, but is usually limited to 12 months.
Property Insurance for Small Business in Bay City
- Number of natural disasters in the U.S. in 2014: 119
- Only 61% of losses from natural disasters were covered; $9.7 billion from damage was not
Major disasters like severe storms, tornadoes or structure fires can do more than just force your business to close for repairs. They can also cause extensive property damage to your business-owned assets. Commercial property insurance covers your business property, including such things as merchandise, outdoor signs, computers, display cases, furniture and tools. Businesses in different industries have varying coverage needs, so it is to your benefit to work with a knowledgeable Trusted Choice Agent when building your Bay City business insurance package. That way, you can get advice about specialized property coverage types, such as inland marine insurance and bailee insurance, that may be a good addition to your policy.
Also, note that flood damage is excluded by nearly all Bay City commercial insurance policies. This is a big concern, as this city is prone to flood damage. Fortunately, your Trusted Choice Agent can help you get supplemental flood insurance through the National Flood Insurance Program (NFIP).
Workers' Compensation Insurance for Bay City Businesses
Michigan’s Disability Compensation Act is pertinent to nearly all employers in the state. It requires that employers provide some way of assuring that benefits will be paid to workers who are injured on the job. While your business has the option of meeting this requirement by implementing a self-insurance plan or joining a group fund, most employers purchase workers' compensation insurance through a private insurance company.
This insurance protects your company from lawsuits related to injuries, deaths or illnesses suffered by workers while on the job by providing appropriate coverage for medical treatment, lost wages and other associated costs. Your Trusted Choice Agent can help you find a policy that is well suited to your business industry.
Employee Coverages for Small Businesses in Bay City
- Total 2013 spending on premiums in Michigan: $1,134,005
- Ranked 39th for highest premiums in the U.S.
- Annual cost of health care for small businesses in 2013: $5,321/person or $15,242/family
The Patient Protection and Affordable Care Act (ACA) includes a requirement that companies with at least 50 full-time employees must offer them subsidized health insurance. Even if your Bay City business has fewer than 50 employees, including benefits like health and life insurance can help you attract and retain strong employees and can earn your business federal tax credits as well. If you are interested in learning more, your Trusted Choice Agent can help you review your options.
Cyber Crime Insurance for Small Business
- Number of identity theft complaints in Michigan in 2014: 10,338
- Ranked #6 highest for identity theft complaints in the U.S.
- Only 22% of businesses have a cyber/data breach response plan
More and more businesses are looking to add cyber crime coverage to their business insurance packages as reports of data theft continue to rise. This relatively new type of insurance protects your company from financial losses associated with liability charges stemming from hackers accessing customer or employee data that you have collected or stored electronically.
Sensitive personal and financial data in the wrong hands can lead to identity theft, fraud and large losses by banks and credit card companies; and this, in turn, can result in expensive lawsuits against your company. If your business is at risk for this sort of crime, be sure to ask your Trusted Choice Agent about adding this important coverage to your Bay City commercial insurance.
Find the Right Bay City Commercial Insurance for Your Business
Every business has its own distinct coverage needs relative to its size, industry, services provided and inherent exposures. That is why there is no such thing as a one-size-fits-all commercial insurance package. When you work with an independent insurance agent in the Trusted Choice network, you will have access to a professional who can explain your many coverage options and make appropriate policy recommendations.
You will also have an easy way to compare customized Bay City business insurance quotes for policies designed to meet your specific business needs. That way, you can be sure that you are getting suitable coverage at a competitive price. Contact a Trusted Choice Agent near your business to learn more about your options when it comes to purchasing Bay City commercial insurance.