There are more than 1,000 businesses in the city of Burton. From the many shops and offices that line Center Road to the various small businesses operating out of people’s homes, each provides goods and services to the community and plays an integral role in the local economy. Business insurance helps these companies stay profitable when disaster strikes.
Independent insurance agents make it easy to find the best policies to cover your Burton business. These agents work for you, not for a particular insurance company, so they can shop around to find the policies your business needs at the most affordable prices. Set up a one-on-one consultation with an insurance agent near you to learn more.
Why Do Businesses in Burton Need Liability Insurance?
Liability lawsuits often result in judgments exceeding $1 million. That is why liability insurance is so important for businesses of all sizes. It is designed to cover the various expenses related to liability lawsuits such as court costs, legal defense fees, and financial damages.
All business insurance policies include commercial general liability insurance (CGL) as a standard part of their coverage. This insurance is designed to cover many common liability hazards businesses can face. The coverage offered by CGL includes:
- Premises liability insurance: This can cover third-party injuries, illnesses, and damage that occur due to accidents on your business property for which your company can be deemed responsible.
- Product liability insurance: This can cover third-party injuries, illnesses, and damage that are caused by products your company produces, sells, or promotes.
- Advertising liability insurance: This can cover against accusations of illegal marking practices such as copyright infringement, deceptive pricing, and false advertising.
CGL insurance by itself cannot fully cover most businesses against all of their liability exposures. Purchasing additional liability products may therefore be necessary. Some supplemental policies you may want to consider for your business include:
- Cyber liability insurance: Cybercriminals grow savvier every year. If your company’s computer system is hacked and these criminals steal sensitive data like your customers’ credit card details, Social Security numbers, or personal information, your business can be on the hook for providing affected individuals with financial restitution and credit monitoring services. Cyber liability insurance can cover these costs.
- Liquor liability insurance: Michigan’s dram shop laws state that businesses that serve alcoholic beverages can be sued if an intoxicated patron goes on to cause injuries or property damage to someone else and it can be proven that the business had served alcohol to a visibly intoxicated person or to a minor. Liquor liability insurance provides coverage in these instances.
- Employment practices liability insurance (EPLI): Whether or not their claims have merit, if a current, former, or prospective employee accuses your company of engaging in illegal employment practices like discrimination, harassment, or wrongful termination, things can get very expensive if your business is not covered by EPLI.
- Professional liability insurance: Workers in professional positions sometimes make errors in judgment or fail to act in a timely manner, and this can result in their clients experiencing financial losses, injuries, or other damage. This insurance is designed to protect these individuals so that they are covered if they are sued for damage caused by a professional error. One example of professional liability insurance is medical malpractice insurance.
Talk to a local independent insurance agent to learn more about these and any other commercial liability insurance products that may be right for your Burton business.
How Does Property Insurance Protect Burton Businesses?
Commercial property insurance is designed to cover loss or damage to your company-owned assets, including computers, furniture, office supplies, tools, merchandise, and inventory. This coverage is a standard part of every business insurance policy.
Businesses in Burton are most at risk for damage caused by accidental fires, property crimes, and severe weather events like electrical storms, windstorms, tornadoes, heavy snows, and freezing temperatures. Fortunately, these hazards are all covered by commercial property insurance.
In addition to your standard property coverage, you may also want to consider purchasing supplemental policies such as:
- Commercial flood insurance: This is important because commercial property insurance does not cover flood damage. Burton businesses near waterways like Kearsley Creek, Thread Creek, and Gilkey Creek are most at risk, but when winter snows melt or heavy rains fall, flash flooding can happen just about anywhere in this city. Your insurance agent can help you obtain an affordable flood insurance policy through the National Flood Insurance Program (NFIP).
- Inland marine insurance: This insurance is designed to cover your business’s portable property whenever it is in transit or is being stored off-site, such as in a warehouse or at a job site.
- Boiler & machinery insurance: This insurance is designed to cover repair costs and business losses related to mechanical malfunctions of your essential business equipment and machinery.
- Bailee's insurance: This insurance is designed to cover valuable property that belongs to your customers whenever it is in your business’s custody, care, or control. You may want to strongly consider this coverage if your business performs alterations, maintenance, or repair services on expensive items.
A local independent insurance agent can help you rest assured that all your company’s valuable assets are appropriately covered.
Is Business Interruption Insurance a Good Idea in Burton?
Tornado activity in the Burton area is 48% greater than the national rate. One of the worst to strike in this city was an F4 twister that touched down just 2.3 miles from the Burton city center in 1956. This tornado caused millions of dollars in damage to area homes and businesses.
If a major disaster like a tornado or an accidental fire affects your business, property damage isn’t the only thing you will need to worry about. If the destruction is very bad, your company may need to remain closed for several weeks while repairs are made.
Business interruption insurance is designed to provide your company with a continuation of income during such times.
Disasters in Michigan
- Number of federally declared disasters in MI since 1953: 42
- Most common reasons for declared disasters: Floods, severe storms, and tornadoes
- Average number of tornadoes in MI per year: 16
Business interruption insurance provides the funds necessary for your company to continue paying regular expenses like rent payments, monthly bills, loan installments, and employee salaries even though your business is not generating any revenue. This coverage can continue until repairs are complete and your business is able to resume normal operations.
A local independent insurance agent can help you determine whether this optional insurance is a good fit for your Burton business.
Do Businesses in Burton Need Worker's Compensation Insurance?
If an employee is injured on the job or suffers an occupational illness due to exposure to toxins in the workplace, worker's compensation insurance can cover the associated costs.
This insurance is designed to pay for the cost of any necessary medical treatment, follow-up care, and prescriptions. It can also provide the injured worker with disability pay while recuperating.
With few exceptions, the state of Michigan requires all businesses that have at least one employee to carry worker's compensation insurance. Sole proprietors are not considered employees and therefore do not qualify for coverage.
Rates for worker's compensation coverage are based on your company’s overall payroll, the number of employees you have, and the types of jobs they do. The more dangerous the job is, the more your coverage will cost. A tree-trimmer would cost more to insure than a loan officer at a bank.
A local independent agent can help you compare policies and quotes from a few competing providers who specialize in covering businesses like yours.
What about Employee Benefits for Businesses in Burton?
You may be considering making your company more attractive to highly qualified workers by offering an employee benefits package that includes perks such as an employer-matched 401(k) plan, paid vacation, paid sick time, life insurance, and health insurance.
There are several different health insurance products available, including HMOs, PPOs, and managed care plans, as well as policies with different deductibles, copays, and coverage limits. This can make it difficult to decide which policies make the best choices.
You may therefore find it beneficial to have the assistance of a local insurance professional. Your agent can help you find suitable, affordably priced policies to include in your employee benefits package.
Why Work with an Independent Insurance Agent in Burton, MI?
The many insurance products and options that are available make it possible for you to fully customize your company’s insurance coverage. However, this can make building a suitable business insurance policy package complex and difficult if you do it alone. Working with an independent insurance agent makes the process easy.
An independent agent in Burton can offer guidance and advice as you navigate through your many choices. Your agent can also obtain customized quotes from a selection of top-rated insurance companies on your behalf. That way, you can be sure you are purchasing appropriate coverage and that you are getting it at a competitive price.
Contact an insurance agent near you to learn more and to start comparing customized quotes for business insurance.
TrustedChoice.com Article | Reviewed by Jeffrey Green
©2020, Consumer Agent Portal, LLC. All rights reserved.