In 2014, there were 856,682 small businesses, employing 1,755,901 people, headquartered in Michigan. More than 800 of these businesses were based in the small city of Big Rapids, MI. Small businesses play a big role within their communities, providing needed services and contributing to the local economy. Whether you are a business owner with several employees or you are an independent contractor with no employees, it is important that you protect the investment you have made in your business with a suitable Big Rapids commercial insurance policy.
Consider this: Businesses in Michigan collected $12,848,751 in business insurance claims in 2014 alone. Protecting your business with the right insurance options can be complicated, so you may benefit from working with an independent insurance agent in the Trusted Choice® network. These knowledgeable agents can help you identify your company’s exposures and can recommend suitable policy solutions to mitigate these risks. Your local Trusted Choice Agent can also provide you with a selection of customized Big Rapids business insurance quotes that you can review and compare. Find an agent near you to learn more.
- 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, so this coverage may be crucial.
- That same national study found that 53 percent of medical malpractice awards by the courts amounted to $1 million or more.
Liability insurance shields your Big Rapids-based business from excessive financial losses that may result if it is sued. This insurance covers court costs, legal defense fees and associated financial damages, but you need to have the right types of coverage in order to receive compensation. All business policies include commercial general liability insurance (CGL). The main components of general liability coverage are the following:
- Premises Liability Insurance: This covers third-party injuries, property damage or illnesses that may occur because of an accident on your commercial premises.
- Product Liability Insurance: This covers your business against lawsuits resulting from injuries, illnesses or property damage caused by products your company produces, sells or promotes.
Your Trusted Choice Agent can also recommend other liability policies that may be appropriate for your business. There are several different types of liability coverage available. Some examples include these:
- Professional Liability Insurance: Also referred to as errors and omissions insurance (E&O), these policies cover those in professional positions against charges such as negligence, professional mistakes and failure to complete a job competently. There are specific policies to cover all kinds of professionals, from doctors to real estate agents.
- Commercial Vehicle Liability Insurance: If your business owns a commercial vehicle or fleet of vehicles, you are required to carry this coverage in order to protect your company from the costs associated with liability lawsuits in the event that one of your employees is responsible for a collision while driving a company vehicle.
Business Interruption Insurance for Big Rapids Businesses
- 2014 gross domestic product (GDP) for U.S.: 2.2%
- 2014 gross state product (GSP) for Michigan: 2.0%
- The 2014 GSP was 0.2% lower than the GDP
Businesses in Big Rapids contribute to Michigan’s gross state product. But how would your business handle the financial repercussions if you are forced to halt operations for an extended period of time? This might happen if the building in which your business is housed burns down or if a tornado destroys the machinery you rely on for production. In such a case, you likely need to remain closed for an extended time while repairs are made; and if the closure lasts for weeks or even months, your business could face significant financial losses.
Fortunately, you can protect your business by making sure that your Big Rapids commercial insurance portfolio includes business interruption insurance. This insurance delivers a continuation of income during the time that your business must remain closed due to a covered event. These funds make it possible to pay employee salaries and monthly expenses, like commercial loan payments, until such time as you can resume normal business operations. Business interruption insurance coverage is typically limited to 12 months of coverage.
Property Insurance for Small Business in Big Rapids
- 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
Your policy’s commercial property insurance covers most of your business assets in the event that they are lost or damaged by a covered event, like a structure fire, tornado or property crime. This coverage includes such things as your business inventory, computers, tools and machinery, outdoor signs, and office furniture. Because businesses in varying industries frequently have very different coverage needs, it is beneficial to work with a Trusted Choice Agent who can help you get the coverage you need to fully protect your assets. Your agent may recommend additional property coverage offerings, such as inland marine insurance and spoilage insurance, if they are appropriate for your business.
Workers' Compensation for Big Rapids Businesses
Workers' compensation insurance, colloquially referred to as workman’s comp, covers your employees for the treatment of work-related injuries and illnesses as well as any related expenses, such as paid time off. It benefits your business by helping it avoid potential liability lawsuits associated with these workplace injuries. In the state of Michigan, businesses are required to carry this insurance if they are:
- a public employer that has at least one employee.
- a private employer that regularly employs at least three full-time workers at a time.
- an agricultural employer that employs at least three workers for at least 35 hours per week for at least 13 consecutive weeks.
- a household that employs at least one domestic servant for at least 35 hours per week for 13 weeks or longer during a 12-month period.
Your Trusted Choice Agent can explain more about workman’s comp insurance and can help you find a selection of policies that are well-suited to your particular business model.
Employee Coverages for Small Business in Michigan
- 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
If your Big Rapids business has at least 50 full-time employees, the “employer mandate” portion of the Patient Protection and Affordable Care Act of 2010 requires that you provide them with subsidized health insurance coverage. If you are interested in learning more about your options when it comes to providing your employees with benefits such as life and health insurance, your Trusted Choice Agent can help you review a selection of affordable coverage options.
Cyber Crime Insurance for Big Rapids Small Businesses
- 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
Cyber crime insurance is a relatively new type of liability insurance that you may want to consider including in your Big Rapids business insurance package. Because electronic data theft is on the rise, this coverage is becoming increasingly necessary for companies that electronically collect and store sensitive information.
If criminals hack into your computer system and steal this information, your company can be sued by the individuals affected as well as their banks and credit card companies. Cyber crime insurance covers your business against resultant lawsuits if this occurs. Be sure to talk to your Trusted Choice Agent to learn more about how adding cyber crime coverage to your Big Rapids commercial insurance portfolio can prove invaluable.
Find the Right Big Rapids Commercial Insurance for Your Business
Allow an experienced agent in the Trusted Choice network to help you identify the various exposures faced by your business. That way, you can work together to find suitable policy solutions to mitigate those risks. Because these independent agents are free to work with several different insurance companies, they can help you find the most affordable options when you are building your Big Rapids business insurance package.
There are many Trusted Choice Agents with offices in the state of Michigan, including in and near the city of Big Rapids. Find an agent near you to get more information, and discover how easy it can be to compare customized Big Rapids commercial insurance quotes.