There are more than 4,500 businesses located in Dearborn Heights, MI. From companies that employ many people, like HYPE Athletics, to sole proprietorships run out of people’s homes, each of these businesses plays an important role in the health of the local economy. Business insurance helps these companies stay profitable in times of trouble.
Building a comprehensive policy package for your business can be complex, but it doesn’t need to be. Independent insurance agents can simplify the process by identifying your company’s potential exposures and recommending the best and most affordable policies to cover against them.
Arrange a one-on-one consultation with an independent insurance agent near you to learn more and to start reviewing customized quotes for business insurance.
Why Do Businesses in Dearborn Heights, MI Need Liability Insurance?
A liability lawsuit could be filed against your company by your customers, employees, or even by other businesses. Even if the courts ultimately rule in your favor, these lawsuits can be extremely expensive for your company if it is not properly insured.
Business liability insurance can shield your company from large financial losses by covering the associated court costs, legal defense fees, and financial damages incurred if your business is sued for a covered event.
You will need to be sure to purchase the right insurance policies to cover against each of your company’s potential liability risks. The following are examples of some of the many commercial liability products you may want to consider including in your business insurance policy package.
- Premises liability insurance: This covers against third-party injuries, illnesses, or property damage that results from an accident, such as a slip-and-fall, that occurs on your business property and for which your company can be deemed responsible.
- Product liability insurance: This covers against third-party injuries, illnesses, or property damage that are caused by a defect or design flaw in a product your business produces, sells, or promotes.
- Cyber liability insurance: This covers against financial losses related to cybercrimes. If cybercriminals install skimmers on your credit card readers or hack into your business’s computer systems and steal customer data such as financial or personal information, your company can face high liability costs. This insurance can cover the cost of restitution and credit monitoring services for affected individuals.
- Employment practices liability insurance: This covers against accusations of illegal employment practices such as discrimination, harassment, retaliation, breach of contract, and wrongful termination.
- Environmental liability insurance: This can cover clean-up costs, damage, and your company’s other financial obligations if an accident or disaster at your place of business results in the pollution of the ground, air, or water by toxic substances used, produced, or sold by your business.
- Liquor liability insurance: This can cover against lawsuits related to damage and injuries caused by a customer who became intoxicated while at your place of business. This insurance is very important for companies that serve alcoholic beverages because Michigan’s dram shop laws allow the injured party to sue your establishment if it can be shown that you provided alcoholic beverages to a visibly intoxicated patron or to a minor.
Talk to an independent insurance agent in Dearborn Heights to learn more about these and many other commercial liability policies that may be a good fit for your business. Your agent can help you be certain that your company is properly covered against all potential liability exposures.
What Insurance Products Cover Your Business Property?
Businesses in Dearborn Heights are most likely to experience property damage caused by tornadoes, electrical storms, windstorms, hail, heavy snows, freezing temperatures, property crimes, and accidental fires. Fortunately, each of these risks is covered by commercial property insurance.
This coverage, which is included as a standard part of every business insurance policy, is designed to pay for repair or replacement costs if your company-owned property is damaged by a covered event. Covered items include office furniture, supplies, computers, merchandise, inventory, tools, and outdoor signs.
In some cases, businesses will need to purchase supplemental policies for their property to be fully covered against all risks. Your insurance agent may recommend products such as:
- Commercial flood insurance: This is important because flood damage is not covered by commercial property insurance coverage, even if the flood is the direct result of a covered storm. Businesses near waterways like the Ecorse or Rouge rivers are most at risk, but when heavy rains fall, flash flooding can occur just about anywhere. A local independent agent can help you review your flood risk and, if you want, can help you obtain an affordable flood policy through the National Flood Insurance Program (NFIP).
- Inland marine insurance: This can cover your company’s portable property whenever it is being transported or stored at a location other than your place of business, such as a job site or a warehouse.
- Bailee's insurance: This can cover your customers’ valuable property whenever it is in your company’s custody, care, or control. This insurance is ideal for companies that perform maintenance, repair, or alteration services on expensive items.
- Boiler & machinery insurance: This can cover the cost of repairing or replacing your company’s essential machinery if it breaks down or malfunctions. It can also cover business revenue losses associated with the machine malfunction.
A local independent insurance agent can help you be sure that all your business assets are suitably covered by appropriate policies and that your coverage limits are high enough to cover the cost of rebuilding, repairing, or replacing lost or damaged property following a covered event.
Is Business Interruption Insurance a Good Idea in Dearborn Heights?
The risk of tornado activity in the Dearborn Heights area is 37% greater than the national average. One of the worst to strike in the area was an F4 twister that touched down just 5.5 miles from the Dearborn Heights city center in 1956.
A major disaster, like a tornado or structure fire, can result in more than just damage to your business property. It could also force your company to remain closed for several weeks while repairs are made. When damage is widespread, as is usually the case with a tornado, repair efforts can take even longer.
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
Most small companies cannot financially handle a long-term forced closure. Business interruption insurance can help by providing your business with a continuation of income until you are able to resume normal operations.
This insurance can provide the funds necessary for your company to continue paying regular monthly expenses such as rent, bills, loan installments, and employee salaries during the time that it is temporarily unable to generate revenue due to damage caused by a covered event.
Consult a local independent insurance agent for help determining whether this optional coverage is a good fit for your Dearborn Heights business.
Do Businesses in Dearborn Heights Need Worker's Compensation Insurance?
Workers sometimes get injured on the job or develop occupational illnesses due to exposure to toxins in the workplace. If this happens, your business is responsible for covering their medical treatment, lost wages, and other related financial losses.
Worker's compensation insurance is designed to provide this coverage. With very few exceptions, all employers in the state of Michigan are required by law to cover their workers with this insurance.
Costs for worker's compensation insurance are based mainly on the types of jobs your employees do and the likelihood that they will be seriously injured while doing them. It would cost a lot more to insure a worker at a construction company than to cover a financial analyst who works at the Dearborn Heights Tax Increment Finance Authority.
An independent insurance agent can help you review coverage and rates from a few competing insurance providers that specialize in covering businesses like yours.
What about Insurance Products for Employee Benefits Packages?
High employee turnover can cost your business a lot of money. Offering a competitive employee benefits package can reduce employee turnover and make it easier for your company to attract highly qualified workers.
When you are looking for insurance products to include in your employee benefits package, you will find that there are several different life insurance and health insurance policies available to choose from. With health insurance, you can choose from PPOs, HMOs, or managed care plans with different deductibles, co-pays, and coverage limits.
This can make it difficult to decide which policies to purchase. A local independent insurance agent can go over the pros and cons of each of your options to help you make an informed decision. Your agent can also help you be certain that the policies you choose to purchase are offered at a competitive price.
Why Work with an Independent Insurance Agent in Dearborn Heights, MI?
Every business has specific risks and exposures, and these can vary significantly from one company to the next, particularly when they operate in different industries. That is why insurance companies offer a wide range of commercial insurance products and policy options. It is also why buying business insurance can be confusing.
Independent insurance agents make it easy. These agents are free to work with a variety of insurance providers, so they can shop around to help you find the best and most affordable policies to meet all of your company’s coverage needs.
Talk to an independent insurance agent in Dearborn Heights to learn more. You will soon discover how easy it can be to build a comprehensive, yet affordable, business insurance policy package that does not include any unintended coverage gaps.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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