As of 2014, there were 856,682 small businesses, employing 1,755,901 people, headquartered in the state of Michigan. Nearly 4,500 of these businesses were based in the small City of Birmingham, MI. This is a great place to set up and build a business, particularly for those who operate in the retail sector. People come from all over the Detroit metropolitan area to shop in Birmingham’s downtown area. Businesses in other industries can thrive as well. The city works hard to help prospective business owners get established in this tight-knit community. Whether you own a business with several employees or you operate alone as an independent contractor, you will want to protect your investment with a suitable Birmingham commercial insurance policy.
Businesses in Michigan collected $12,848,751 in business insurance claims in 2014. Creating a strong portfolio of commercial insurance coverage that can adequately protect your Birmingham business can be a complicated endeavor. Fortunately, when you discuss your company’s coverage needs with an independent agent in the Trusted Choice® network, the job becomes much less complex. These agents can work with several top-rated insurance companies to help you compare customized Birmingham business insurance quotes so you can choose the policies that offer the best value to your company.
A liability lawsuit filed against your company can have fiscally disastrous consequences. Even if the courts rule in your favor, the cost of your legal defense alone can be overwhelming. That is why it is so important that your Birmingham commercial insurance policy include the right kinds of liability coverage.
Liability insurance covers legal defense, court costs and associated financial damages for covered lawsuits. Your policy will include general liability coverage, and you will need to add other liability coverage types that are relevant to your business. Your Trusted Choice Agent can recommend appropriate coverage types.
Some types of liability insurance your agent may discuss with you include the following:
- Premises Liability Insurance: This is part of your policy’s general liability coverage. It protects your business if a third-party suffers property damage, injuries or an illness as a result of an accident on your commercial premises. 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. Premises liability insurance covers the medical costs that accompany accidents at your place of business.
- Product Liability Insurance: This is also part of your policy’s general liability coverage. It protects your Birmingham-based business if it is sued because a product it produces, promotes or sells causes damage, illnesses or injuries to others. According to a national study, 71 percent of product liability awards by the courts amounted to $1 million or more, so this coverage can prove to be invaluable to the financial well-being of your company.
- Errors and Omissions Insurance: Individuals in all types of professional positions benefit from purchasing industry-specific professional liability insurance. The most commonly known type is medical malpractice insurance, and a national study found that 53 percent of medical malpractice awards by the courts amounted to $1 million or more. There are other specific policies in place for professionals in fields ranging from financial planners to architects.
Business Interruption Insurance for Birmingham Companies
- 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
If a disaster, such as a tornado or an explosion, forces you to halt business operations for an extended time while repairs are made, the stoppage can significantly impact your business revenues. Make sure that your Birmingham commercial insurance policy includes business interruption insurance so that your company can continue to collect income while it is unable to operate. That way, you can continue to pay key employee salaries and monthly expenses until you are able to reopen and resume normal business operations. This coverage is typically limited to 12 months.
Property Insurance for Small Business in Birmingham
- 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
Disasters, ranging from tornadoes to fires, can lead to substantial financial losses for your Birmingham business, and part of the reason is due to property damage. Fortunately, your policy’s property insurance covers loss or damage to your business-owned assets, such as your inventory, merchandise, tools, machinery, computer systems and office furniture. Businesses in different industries have varying coverage needs and may benefit from other supplemental property coverage options, such as inland marine insurance, which protect your property while it is in transit. That is why it is advantageous to work with an experienced Trusted Choice Agent when you are building your Birmingham business insurance package.
Workers' Compensation for Birmingham Businesses
Workers' compensation insurance (often referred to as “workman’s comp”) covers the treatment of work-related illnesses and injuries as well as other associated expenses, such as paid time off. This insurance helps your business avoid potential liability lawsuits associated with workplace injuries.
In Michigan, you, as a business owner, are required to carry this insurance if:
- you are a public employer with one or more employees.
- you are a private employer who regularly has three or more full-time employees at a time.
- you are an agricultural employer who has three or more employees for at least 35 hours per week for 13 or more consecutive weeks.
- you run a household that employs one or more domestic servants for at least 35 hours per week for 13 weeks or longer during the preceding 12-month period.
Your Trusted Choice Agent can help you find a workman’s comp policy that is well-suited to meet the needs of your particular business and that you can include in your Birmingham commercial insurance package.
Employee Coverages for Small Businesses in Birmingham
- 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 Affordable Care Act (ACA) of 2010 mandates that all U.S. companies with at least 50 full-time employees must provide these workers with subsidized health insurance coverage. Including benefits like health and life insurance as part of your employee benefits package can help you attract and retain a talented workforce, so it may be a good investment even if your company has fewer than 50 employees and is exempt from the requirement. If you are interested in learning more, your Trusted Choice Agent can present you with a selection of affordable options from which to choose.
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
Cyber crime insurance has become increasingly necessary as data hacking and identity theft is on the rise — particularly in the state of Michigan. If your business electronically collects or stores sensitive personal and financial information about customers, employees or other individuals, it is at risk.
In the wrong hands, this data can lead to excessive financial losses for those affected as well as for their banks and credit card companies, all of whom can sue your company for financial damages. Therefore, if you collect this type of data, it may be a very good idea for you to add this relatively new type of liability insurance to your Birmingham business insurance package. Talk to your Trusted Choice Agent to learn more.
Find the Right Birmingham Commercial Insurance for Your Business
Businesses have specific and varying exposures according to their industry, location and size and the services they provide. When you work with an independent insurance agent in the Trusted Choice network, you will have access to a wealth of information about your many coverage options. You will also be provided with an easy way to compare customized Birmingham business insurance quotes for policies that meet your business’s coverage needs. This will enable you to find appropriate coverage at the most affordable price.
You do not need to shop for business insurance on your own. There are several Trusted Choice Agents with offices in Michigan, and many are located in and near the city of Birmingham. Find an agent near you to learn more, and discover how easy it is to compare prices for Birmingham commercial insurance policies.