As the headquarters of many national and international companies, Novi, MI continues to be one of the fastest-growing communities in the state. Businesses large and small are attracted to this center of Oakland County because it is more than a suburb of Detroit – it is indeed a city in and of itself. With a great climate for business all around, it’s a hot spot in a state that is eager to build and provide opportunities for everyone. How much does Michigan mean business?
There are 856,682 small businesses, employing 1.8 million people, across the state. But as any entrepreneur knows, there are liabilities and requirements that come with any business. There were total insurance claims of $12.8 million paid out in recent years. Starting a business is difficult for many reasons, and one of them is understanding the insurance requirements.
The best step to finding the right Novi business insurance is to develop a good relationship with an Independent Insurance Agent. Because these agents understand the area and the laws and union requirements, they can help you navigate your options and find the best quotes for your business needs at a price you can afford. Business insurance brings with it protection against general liability. This is coverage against claims for injuries by people who are on your property, including delivery personnel and customers. The insurance company goes to bat for you in a court of law if you are sued by anyone claiming a loss.
This is critical because any incident on your property can become very expensive very quickly. A recent Travelers Business Risk summary found that 60 percent of all businesses said that medical cost inflation was their biggest concern, with over 30 percent responding that they felt unprepared to handle this risk. If an injury takes place on your property, you have to be ready to handle these costs if you are held liable.
For any claims that come from your products away from your property, you need to have product liability coverage. The issues are the same for this as well. The Insurance Information Institute found that recently, 71 percent of product liability awards and 53 percent of medical malpractice awards were for more than $1 million. Protection against these kinds of nearly unlimited costs are critical for any business.
Business Interruption Insurance for Novi Businesses
If for any reason you can’t open your doors on any particular day, this insurance coverage matches your income until you can get up and operating again. It’s based on the revenue you took in when times were good and carries through until the problem is fixed and you are back on your feet. Prolonged business interruption can happen for many reasons. Fire and storm damage are the main reasons your business could be closed for a long period. There can also be other events such as civil unrest or anything else that you would reasonably not be able to see coming. This insurance covers the ongoing costs as well, such as power and employee benefits, until you are back up and operating again.
Property Insurance for Novi Businesses
While it’s good to have your costs covered when you can’t operate, you need good insurance on your property for the cost of putting it all back together. It’s not just a matter of getting it all fixed up, it’s about making sure it’s done in a timely manner without a lot of hassle. This is a particular concern when there is widespread damage from a storm.
Recently, there was a total of 119 official natural disasters across the U.S. With all the damage that they created, only 61 percent of the damage was covered by insurance. That left the property owners stuck with $9.7 billion in losses that had to be covered out of pocket. When disasters of any kind strike, the right Novi commercial insurance coverage is critical to getting your business all fixed up so that you are back in business in the shortest time possible without having to find the money to do it on your own.
Workers' Compensation for Novi Businesses
Workers' compensation insurance is usually known as “workman’s comp.” It covers the expenses incurred by your employees when they are injured on the job, whether by a single incident or from repeated motion over a long time. Michigan state law requires this for every employee, and it pays out whenever they are unable to work. Nationally, this averaged out to $1.27 for every $100 in wages in recent years, or an average of $612 per employee.
The cost of this insurance is based on the kind of work your employees do, based on tables developed from claims taken out by employees in similar businesses. If you have a new business, you are given a non-negotiable price, but with time a lower rate of claims by your employees will lower your cost. You can also get credit for ergonomic equipment and employee training to reduce injuries on the job.
Employee Coverages for Novi Businesses
Beyond the required workman’s comp, there are other forms of insurance that you need or may want to cover your employees. These include the following:
- Health Plan Insurance: This is now required by law for companies with 50 or more employees. Even if you don’t have a business this large, you may want to provide this as an option for your employees.
- Life Insurance: It’s important to cover your most important employees should something untimely happen to them. They may also want to at least be able to buy into protection for their families through your business as well.
- Disability Insurance: This is like life insurance, but it pays out when an employee cannot work anymore for any reason.
In recent years, $1.1 billion was paid for employee health care coverage in Michigan. An average single person health plan cost employers $5,321, while a family policy ran $15,242. You may want to offer your employees a range of coverage to encourage loyalty and reduce retraining costs or to comply with union contract requirements. There are many skilled employees to be found in Novi, but they may expect certain benefits before they are willing to join your business’s family.
Cyber Crime Insurance for Novi Businesses
Protecting your business against all unforeseen circumstances is the key to a good commercial insurance policy. There are many areas that you may not be aware you need coverage, such as protection against losses from cyber crimes. There were 10,338 reported identity thefts recently in Michigan, the sixth highest in the nation. It is absolutely critical that your business be protected against this rampant and growing problem. If your business's identity is stolen, the potential liability is nearly unlimited if you don’t have the best insurance policy.
For all of your Novi business insurance needs, the most important thing you can do is to contact your Independent Insurance Agent. After getting to know the many needs of your business, your agent will be best suited to help you navigate the complex array of coverage you need to be protected and can then obtain multiple quotes to find the best price for you to compare your options.