Michigan means business, and the state is doing everything it can to promote a strong business climate. Brighton, MI is a great place to start a business because it’s close to the Detroit metro area but much more affordable. Great employees and access to Fortune 500 companies like Ford and GM are what make all the difference. But before you open your doors here in Brighton, you need to have the right insurance to protect your business.
How dynamic is business in Michigan? Consider these figures from 2014:
The dynamic and growing small business climate is a great asset, but the right Brighton commercial insurance is essential to managing the potential liabilities that come with it. While your business insurance needs are daunting and complex, your Trusted Choice® Independent Agent is there to help you understand them. Your agent will help you navigate your many options and find you multiple quotes from many different agencies so that your business has the right insurance for your operation at the lowest possible cost.
The portfolio that will protect your business starts with general liability insurance. This coverage handles any damage on your property to customers, delivery personnel or visitors of any kind. Because the cost of an injury is essentially unlimited, your business needs to be protected.
How expensive can an injury on your property be? In 2015 a Travelers Business Risk survey found that 60 percent of all business said medical cost inflation was the biggest concern, and 30 percent said that they felt unprepared to handle this risk. This is one of the biggest risks that any business takes, and it comes the moment you first open the doors.
That is only the start of the liability coverage your Brighton business needs, however. If you make any product or provide a service, you need product liability insurance for events that take place apart from your premises. It has the same concerns. The Insurance Information Institute found in 2014 that 71 percent of product liability awards, as well as 53 percent of medical malpractice awards, were for more than $1 million or higher.
When something happens beyond your control, you may not be able to conduct normal business. This may be something as simple as an extended power outage, or a major problem like a fire or water pipe break. Whatever the reason, business interruption insurance fills the gaps until you can get back up and operating.
It’s based on the revenue you took in before the event that put you temporarily out of business. It pays out until you can resume normal operations again and makes sure that your continuing bills such as rent, electricity and so on are covered. This insurance is often the difference between a business that can survive a serious event and not.
Business interruption insurance is vital for covering unforeseen circumstances, which can keep you closed for a long time.
When there is a major event that keeps you from operating, the next thing to consider is putting everything back together and fixing the damage. That’s what property insurance is for. Whether you rent the space or you own it yourself, property insurance is essential for fixing whatever goes wrong and getting the doors open as soon as possible. For this reason, the right Brighton business insurance for you isn’t always the lowest priced.
Far too many businesses try to cover their losses on their own, often with results as disastrous as a storm:
There are many reasons your property might suffer damage. Fire and storms are the most common, but there are many unforeseen events covered by the right insurance policy. Saving money may seem like a good idea in good times, but when disaster strikes you want good coverage that gets your business’s doors open quickly.
There is much more to finding the best business insurance than business liability and property coverage. You also have to take care of your workers, starting with workers' compensation as required by Michigan state law.
Workman’s comp, as it is usually known, is insurance that pays out to your employees if they are injured on the job and unable to work. It doesn’t matter if the injury is from a single event or takes place over years of repetitive stress – if they can’t work for a period of time, they are covered.
The cost of the policy is based on either your history of employee claims or, in the case of a new business, the rates seen by similar businesses with similar tasks in the area. Nationally, this averaged $1.27 for each $100 in wages in 2014, which comes to $612 per employee.
There are many things you can do to keep this cost low. Your Trusted Choice Independent Agent can help you identify areas where equipment or procedures can be put into place to reduce the chance of injury and help you to find a more affordable policy to cover the sometimes high cost of workman’s comp.
Employers spend more in health insurance than for any other business insurance category. A total of $1.1 billion was paid for employee health care coverage in Michigan in 2013. An average single person health plan cost employers $5,321. While a family policy ran $15,242. But it is only one of the kinds of coverage you may want to offer to your employees. Options include the following:
Many Brighton businesses offer packages for their employees to keep the best ones and reward loyalty. You spend a little more on insurance but save on training while keeping service and quality high. It’s worth considering depending on your situation.
There is still more insurance that your business needs to have, some of it in areas you might never think of. For example, 10,338 identity thefts were reported in 2014 in Michigan, the sixth highest number of thefts in the nation. Policies are available to protect your business at affordable rates, assuming you take a few precautions of your own and work with your insurance carrier.
This is one of the main reasons why a good relationship with your Brighton-based Trusted Choice Independent Agent is absolutely critical. Your agent can assess the needs of your business and explain how a wide variety of policies can work for you. When you know you are covered for anything beyond your control, you can concentrate on what you do best – running your business for a brighter future. Talk to your Trusted Choice Agent today.