Motown is powering back, and small business is leading the way. As the headquarters of some of the most prestigious companies in America, including powerhouses Ford and GM, Detroit, MI has always had a great need for a supply of entrepreneurs for the auto industry. Today, high-tech companies are leading the way, helped along by an excellent state business climate and a skilled workforce. Detroit means business. Michigan is home to 856,682 small businesses that employ 1.8 million people. You won’t find a more vibrant place to do business anywhere.
Opening a small business is a daunting challenge, however, and it takes the right insurance. The need for reliable insurance in Detroit is emphasized by a total of $12.8 million paid out in recent years for business insurance claims. The best way to cover your liability and get the insurance you need is to form a close relationship with your Independent Insurance Agent. Your agent will get to know your business and find the best Detroit commercial insurance that fits your needs and your budget.
Your business insurance needs start with general liability coverage. This insurance covers claims for injuries to other people and third-party property damage to individuals such as customers or delivery persons. It also covers any legal defense if your business is sued for any unforeseen event. Any incident on your property has almost unlimited liability because of potential medical costs. According to a recent Travelers Business Risk Summary, 60 percent of small-business owners ranked medical cost inflation as their highest concern and over 30 percent said they felt the least prepared to handle this concern. If you are sued over some incident on your premises, you need to have someone there for you in court. This is what general liability does for you.
If you manufacture a product or provide professional services, you also need product liability insurance or professional liability insurance, which are types of general liability insurance. According to a national study by the Insurance Information Institute, 71 percent of product liability awards and 53 percent of medical malpractice awards amounted to $1 million or more. The only way you can protect yourself against the liability you take on just by operating is to have the right insurance.
Business Interruption Insurance for Detroit Businesses
You never know just what might shut your business down. Power interruptions from a large winter storm can last for days. If you suffer a fire or a water pipe break, you won’t be able to resume business operations until your property is put back in shape. Business interruption insurance covers the cost of being down during this time.
Your coverage pays out based on the revenue that you weren’t able to collect when closed, calculated from the receipts during the time you were open. It also covers ongoing costs such as power and employee benefits until you are back up and operating again. Business interruption insurance is vital for covering any unforeseen circumstances that may affect you for an extended period. It’s there to keep you going until you can have the doors open for business again.
Property Insurance for Detroit Businesses
Property insurance covers the cost of restoring the space and equipment that you need in order to operate. Once you have the coverage to keep you in business through any unforeseen event, it’s important to have the right insurance to help you get your business back up and operating. The list of such events is long, and it includes the following:
- Water pipe breaks
- Natural disasters
- Civil unrest
- Anything else you can’t plan for
There were 119 natural disasters in the United States in recent years. Insurance covered only 61 percent of these losses, leaving $9.7 billion in damage, which businesses had to take care of on their own. Property insurance is a key part of making sure that an event you have no control over won’t put your business down so you can bounce back and keep going.
Workers' Compensation for Detroit Businesses
Michigan state law requires workers' compensation insurance, usually referred to as “workman’s comp.” This covers your employees if they are injured on the job, whether from one single incident or from repeated actions over an extended period of time. Nationally, this came to $1.27 for every $100 in wages, or an average of $612 per employee.
The insurance premiums for workman's comp are based on the number of claims you have had in the past. Any new business is assessed by the kind of work done and the categories of employees on the job. A business will save money if it puts in place injury reduction programs and equipment. This is why a close relationship with an Independent Agent who understands workman’s comp is vital to finding an affordable policy that fits under the applicable laws and regulations for your business. Keeping your workers healthy keeps your business operating and saves you money.
Employee Coverage for Detroit Businesses
One of the biggest insurance costs for any business that employees a lot of workers is health insurance. A total of $1.1 billion was paid for employee health care coverage in Michigan in recent years. The average single person health plan cost employers $5,321 and a family policy typically cost $15,242. This is only one of the kinds of coverage you may want to offer to your employees, however, and you have many options:
- Health plan insurance: This is required by law for companies with 50 or more employees, but many smaller businesses are opting to provide this coverage as a service for their loyal workers.
- Life insurance: In case something happens to your employee, you may want to cover the employee as well as protect the employee's family.
- Disability insurance: Similar to life insurance, this pays out when an employee cannot work anymore for any reason.
Sometimes these packages are part of a union contract, so you will have to see what your employees require. Even without union requirements, many Detroit businesses offer packages for their employees to keep the best ones and reward their loyal service. It’s a key way to reduce training costs and improve service.
Cyber Crime Insurance for Detroit Businesses
In recent years, there were 10,338 reported identity thefts in Michigan, the sixth highest in the nation. This is one area that you may not think of getting coverage for, but it’s a great example of why an experienced professional who understands your business insurance needs is essential. The potential liability in cases of identity theft is limited only by your credit, and it can be devastating.
For this and all your insurance needs, the best place to start is always with your Independent Agent. Your agent understands business insurance in Detroit and needs to get to know your business insurance needs. This relationship is critical for any small business that needs to be covered according to the regulations and needs to know the liabilities that every business has when it opens the doors and hires new employees.
Talk to your agent today and get the process started so that you can concentrate on making your business grow without worry.