Dearborn Business Insurance

The Complete Dearborn Business Insurance Guide

In 2014, there were 856,682 small businesses, which employed 1,755,901 people, headquartered in Michigan. More than 10,500 of these businesses were based in Dearborn, MI. While the city is best known for being the world headquarters of Ford Motor Company, many small businesses are also thriving here. Whether you are the owner of a large manufacturing plant or a small diner, or you are an independent contractor with no employees, it is important that you protect your business assets with a suitable Dearborn commercial insurance policy. In 2014 alone, businesses in Michigan collected $12,848,751 in business insurance claims, which highlights how important this coverage is.

Building an all-encompassing insurance portfolio for your business can often be tricky, but it is necessary to ensure that your company is properly coverage. Fortunately, an independent insurance agent in the Trusted Choice® network can help by identifying your company’s exposures and suggesting coverage options that can mitigate these risks. These agents can also work with several different reputable insurance companies to help you find suitably priced coverage. Find a Trusted Choice Agent near you to learn more and to start comparing customized Dearborn business insurance quotes.

  • 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.
  • According to a national study, 71 percent of product liability awards by the courts amounted to $1 million or more.
  • That same study showed that 53 percent of medical malpractice awards by the courts amounted to $1 million or more.

Many small businesses are not equipped to deal with the high cost of a liability lawsuit. Even if the courts ultimately rule in your favor, you can still be forced to shell out tens of thousands of dollars on legal defense alone. That is why it is so important that your Dearborn business insurance portfolio include general liability insurance as well as any other liability coverages that are appropriate for your industry and business model. This insurance shields your business from significant losses by covering associated legal defense fees, court costs and financial damages. Your independent insurance agent can further explain the benefits of these coverages:

  • Premises liability insurance: This covers the costs associated with property damage, injuries or illnesses suffered by third parties while on your business property. This is included as part of your general liability coverage.
  • Product liability insurance: This provides necessary coverage if a product your business produces, sells or promotes causes damage, injuries or illnesses to others. This is also included as part of your general liability coverage.
  • Errors and omissions insurance: This professional liability insurance covers people in professional positions against lawsuits that may arise due to perceived errors in judgement, failure to act in a timely manner and other professional mistakes. Medical malpractice insurance is one example of professional liability coverage.

There are additional types of liability coverage that may be a good fit for your business. Some examples include pollution liability insurance, completed operations insurance and commercial vehicle liability insurance. Your Trusted Choice Agent can identify your company’s exposures and make appropriate recommendations.

Business Interruption Insurance for Dearborn Businesses

  • 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

Dearborn businesses contribute to Michigan’s gross state product. However, if a covered disaster, such as a fire or tornado, forces you to stop business operations for an extended time while repairs are made, your business will be unable to generate revenue. This lost income can significantly affect your bottom line, and if the closure goes on too long, it may be damaging enough to bankrupt your business.

You can mitigate this risk by making sure that your Dearborn commercial insurance portfolio includes business interruption insurance. With this coverage, your company can continue to collect the income it needs to pay employee salaries, monthly bills and other important expenses during the forced closure. This coverage lasts until you are able to resume normal business operations, though it is usually limited to 12 months.

Property Insurance for Small Business in Dearborn

  • 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

Major disasters can inflict your company with expensive property damage. Property insurance covers business-owned property, such as merchandise, computers, furniture, tools and machinery. Companies in different industries have varying coverage needs, and there are specialized property coverage types that are appropriate for certain businesses. That is why it is beneficial to work with a knowledgeable Trusted Choice Agent when you are building your Dearborn business insurance package.

Also, bear in mind that flood damage is excluded from nearly all Dearborn business insurance policies. Because of the significant risk of flooding in Dearborn, it is a good idea to supplement your portfolio with commercial flood insurance through the National Flood Insurance Program (NFIP). Your Trusted Choice Agent can help you get this coverage.

Workers' Compensation for Dearborn Businesses

Workers' compensation insurance, also known as workman’s comp, covers the treatment of work-related injuries and illnesses as well as related expenses and paid time off. It can help your business avoid potential liability lawsuits associated with workplace injuries. In Michigan, you are required to carry this insurance in any of the following cases:

  • You are a public employer.
  • You are a private employer regularly employing three or more full-time workers at a time.
  • You are an agricultural employer employing three or more workers for 35 hours or more per week for 13 or more consecutive weeks.
  • You are a household employing one or more domestic servants for 35 hours or more a week for 13 weeks or longer during the preceding 52 weeks.

Employee Coverages for Small Business in Michigan

  • 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) requires companies with 50 or more full-time employees to provide these employees with subsidized health insurance coverage. Even if your business has fewer than 50 employees and is not required by law to offer it, bear in mind that benefits like health and life insurance can help you attract and retain strong employees and can even earn your company a federal tax credit. Your Trusted Choice Agent can provide you with more information and help you review your options if you are interested in learning more.

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 reports of electronic data theft are on the rise, particularly in Michigan. If you collect or keep sensitive personal and financial information about your customers or employees online or on your business’s computer system, the data is at risk of being accessed by hackers. If this happens, your company can be held responsible for compensating the affected individuals, as well as their banks and their credit card companies, for substantial financial damages. You can include cyber liability insurance as part of your Dearborn commercial insurance portfolio to shield your business from losses related to this type of crime.

Find the Right Dearborn Commercial Insurance for Your Business

Every business has unique coverage needs relative to its location, industry, size and services provided. That is why there is no such thing as a one-size-fits-all business insurance package. When you work with an independent insurance agent in the Trusted Choice network, you can get information about your various coverage options and you will be able to easily compare customized Dearborn business insurance quotes so you can choose the policy that offers the best value to your company.

There are several Trusted Choice Agents in the state of Michigan, and many have offices in and near Dearborn. Find an agent located conveniently close to you to get more information about building a strong portfolio of Dearborn business insurance for your company.

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