The leafy suburbs of Detroit are more than great places to live. Bloomfield Hills, MI is also a great place to open a business. The state of Michigan is serious about attracting more businesses and is doing everything it can to create a good business climate.
Michigan is home to 856,682 small businesses, which employ 1.8 million people. You won’t find a more dynamic state to open a business. Opening a small business is still a lot of work, however, and it takes the right insurance. The need for reliable insurance in Bloomfield Hills is shown by the total of $12.8 million paid out in 2014 for business insurance claims.
The best way to find insurance by establishing a close relationship with your local Trusted Choice® Independent Agent. Your agent will get to know your business and help you to navigate the complex options to find the coverage that you need. By obtaining multiple quotes from many different agencies, you can compare the rates and pick the one that is most affordable for your business, too.
The first consideration for any business insurance is general liability. This covers you for any injury to customers or visitors that takes place on your premises; this also covers you for any injury that takes place during deliveries. The liability that you take on simply by opening your doors is nearly unlimited due to the potential cost of an injury as medical bills keep rising.
You never know just how expensive an injury might be. The Travelers Business Risk summary found in 2014 that 60 percent of all business felt medical cost inflation was their biggest concern, with over 30 percent responding they felt unprepared to handle this risk. General liability insurance covers you for all eventualities related to injuries.
Similarly, product liability coverage or professional liability covers you for any injuries that come from your products or services. The Insurance Information Institute found that 71 percent of product liability awards in 2014 and 53 percent of medical malpractice awards were for more than $1 million. If you are providing a product or service, you have to be protected from these claims.
You never know when you might not be able to conduct business as usual. An extended power outage can keep you shut down for days, especially if it comes during a severe winter storm. Fires and water pipe breaks are other unforeseen situations that might keep you from operating for an extended period until the damage is fixed.
While you are down, business interruption insurance pays you based on the revenue you would have brought in during that time. It’s calculated from your revenues while you are up and operating, and usually covers all the costs that are ongoing even when you aren’t. This coverage is usually the difference between being able to survive a disaster and not, so it is a critical part of every Bloomfield Hills commercial insurance coverage.
After covering the losses from being unable to operate, the next most important thing is to get your property fixed up so you can start up again. A good policy pays out without a lot of hassle after an event so that you can get back on your feet quickly.
Storms are not common in Bloomfield Hills, but when they do strike they can cause a lot of damage. There was a total of 119 natural disasters across the U.S. in 2014. Of the damage that resulted, only 61 percent was covered by insurance. Property owners had to cover $9.7 billion in losses on their own as a result.
That’s why the cheapest insurance for your property isn’t always the best choice for you. You need to ask whether you can afford to take on risk by yourself before you take on a policy that does not cover your premises completely in the case of a disaster that shuts you down.
Generally known as “workman’s comp,” workers' compensation insurance covers employees when they are injured on the job, whether by a single incident or from repeated motion over a long time. It pays out for a period during which they cannot work. Michigan state law requires this for every employee.
Nationally, the cost for workman’s comp came to $1.27 for every $100 in wages in 2014, an average of $612 per employee.
The cost of this insurance is based on the kind of employees you have, taken from tables developed from claims taken out by employees in similar businesses. When you have a new business, your insurer will give you a nonnegotiable rate, but over time, the insurer will give you a lower rate based on fewer claims by your employees.
Depending on your insurance company, there are many things that you can do to keep your rate low, including having ergonomic equipment available and special employee training on how to avoid injury on the job.
The largest single insurance cost for most businesses is employee health insurance. A total of $1.1 billion was paid for employee health care coverage in Michigan in 2013. The average single person health plan cost employers $5,321, and a family policy typically cost $15,242. There are many kinds of insurance you may want to offer your employees, including the following:
Offering insurance plans to your employees may not cost you much but can improve employee morale and loyalty. Rates and benefits for employee plans vary widely from one provider to another, so it’s important to shop around for the coverage that meets both their needs and your business’s budget.
There were 10,338 reported identity thefts in 2014 in Michigan, the sixth highest number in the nation. You may not think about coverage for eventualities like this, but if you aren’t covered, the effect can be devastating. The potential liability is limited only by your credit.
For all of your Bloomfield Hills business insurance needs, the most important thing you can do is to contact your Trusted Choice Independent Insurance Agent. After getting to know the many needs of your business, your agent can then help you navigate the complex array of coverage you need in order to be protected and can then obtain multiple quotes to find the best price for you to compare your options.