One of the best suburbs ringing Detroit, Livonia, MI is a great place to live. “L-Town,” as it is often known, is home to a thriving business community and is in many ways its own city. It’s a great place to open a business, as shown by the many companies that have made their headquarters here. Finding the right Livonia commercial insurance for your business is not easy. Your Independent Insurance Agent is there to help you navigate your options and find the best insurance for your needs at the best possible price.
How vibrant is the economy? Michigan is home to 856,682 small businesses that employ 1.8 million people. The need for reliable insurance in Livonia was underscored by the total claims of $12.8 million paid out in recent years for insurance claims. Reliable and affordable coverage is essential. General liability insurance is at the heart of your business insurance needs. It 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 over a covered incident.
The cost of incidents, no matter how small, can be breathtaking 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. Any injury on your premises can be extremely expensive, and if you are sued to cover the costs, you will need to have someone there for you in court.
If you make a product or provide professional services, you will also need product or professional liability insurance. The same concerns apply here, too. 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 potential costs from an injury are nearly unlimited, so you have to have the right insurance.
Business Interruption Insurance for Livonia Businesses
If you can’t open the doors in the morning because of natural disasters or other reasons, you need business interruption insurance to cover the costs of not being able to conduct normal operations. This compensates you for lost income due to events such as these:
- Water pipe breaks
- Natural disaster
- Any other reason your business is interrupted that is not your fault
Business interruption insurance pays out based on the revenue that you weren’t able to collect when closed, taken from the receipts you had when you were open. It covers the ongoing costs as well, such as power and employee benefits, until you are back up and have the doors open again.
Property Insurance for Livonia Businesses
When your business is closed, you suffer more than just a loss of business – you have to fix the damage that occurred to get fully back up and operating again. Where it may seem wise to buy the cheapest property insurance, you may regret that when disaster strikes. An agency that pays out quickly without a lot of hassle is critical when you want to get back in business after a disaster.
There were 119 official natural disasters in the U.S. in recent years. Only 61 percent of the losses realized from these was covered by insurance, leaving $9.7 billion in damage not covered by a property insurance policy. In case of any incident, you need the proper coverage to make sure you can get back on your feet quickly. There is enough to worry about when disaster strikes, so the right insurance for your business can make all the difference.
Workers' Compensation for Livonia Businesses
Workers' compensation insurance is required by Michigan state law. It covers the expenses related to employee on-the-job injuries, 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 in recent years, or an average of $612 per employee.
Typically known as “workman’s comp,” these insurance premiums are based on the number of claims you have had in the past. New businesses are assessed by the kind of work done and the categories of employees they hire. You can often save money based on the programs and equipment you provide your employees, so a solid 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.
Employee Coverages for Livonia Businesses
Michigan-based businesses paid $1.1 billion for employee health care coverage in recent years. The average single person health plan cost employers $5,321, and a family policy cost $15,242. Coverage for health care is only part of the package of insurances that you may want to offer your employee, however:
- 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 your employee's life as well as protect the family.
- Disability insurance: Similar to life insurance, this pays out when an employee cannot work anymore for any reason.
A good employee coverage plan helps you retain valuable workers, cutting down on training and improving service. Many Livonia businesses offer packages for their employees so that they stay loyal and are always at the best on the job.
Cyber Crime Insurance for Livonia Businesses
One category of insurance that you may not think of on your own is protection against cyber crimes, including identity theft. There were 10,338 reported identity thefts recently in Michigan, the sixth-highest number in the nation. This insurance is critical to limit the expenses run up by someone using your identity without authorization. It is just one of the many types of insurance that may not be on your radar as you open a business but are critical for protecting you against loss. A good relationship with your Livonia-based Independent Insurance Agent is critical to opening up or expanding a successful business.
Call an agent today to obtain a quote for the areas that you need to protect so that you can rest easy knowing your business is protected.