Originally a thriving lumber town and then a major industrial city, Saginaw, MI is currently focused on innovation, manufacturing and the development of clean energy. As of 2014, there were 856,682 small businesses, employing 1,755,901 people, based in the state of Michigan, and nearly 4,200 of these businesses were headquartered in Saginaw. Whatever your business industry and no matter how large or small your company, it is important that you protect your investment with a suitable Saginaw business insurance policy. Consider this: In 2014 alone, businesses in Michigan collected $12,848,751 in business insurance claims.
Building a comprehensive commercial insurance package for your Saginaw-based business can be a complicated endeavor. Fortunately, when you discuss your company’s coverage needs with an independent insurance agent in the Trusted Choice® network, the process becomes much easier. These agents can work with several reliable insurance companies to help you obtain and compare Saginaw commercial insurance quotes for policies that are designed to cover the specific risks associated with your business.
- 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, so this coverage may be crucial.
- That same national study found that 53 percent of medical malpractice awards by the courts amounted to $1 million or more.
A liability lawsuit filed against your company has the potential to lead your small business into bankruptcy if you do not have the right liability coverage. Even if the courts rule in your favor, the cost of your legal defense alone could amount to tens of thousands of dollars. Fortunately, your Saginaw commercial insurance will likely include commercial general liability insurance (often called CGL), which covers legal defense, court costs and financial damages for a number of common hazards. An independent insurance agent can help you identify the types of liability coverage that are right for your Saginaw business. The coverage may include the following:
- Premises liability insurance: This is one of the main components of your CGL. It covers your business if an accident on your commercial premises leads to third-party illnesses, injuries or property damage.
- Product liability insurance: Another component of your CGL, this covers your Saginaw-based business if a product you produce, promote or sell causes illnesses, injuries or property damage to others.
- Professional liability insurance/Errors and omissions insurance: Professionals in all fields can benefit from purchasing an industry-specific professional liability policy. The most commonly known type is medical malpractice insurance, but there are professional liability policies in place to protect all kinds of professionals, from architects to wedding planners.
Business Interruption Insurance for Saginaw Small 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
Saginaw businesses contribute to Michigan’s GSP, but a major disaster that causes significant damage to your business or surrounding structures or roadways can force you to halt business operations for an extended time while repairs are made. This can significantly affect your business revenues and lead to financial hardship for your company.
Make sure that your Saginaw commercial insurance policy includes business interruption insurance so that your business can continue to collect income during the forced closure. That way, you can continue to pay key employee salaries as well as monthly expenses until you are once again able to resume normal business operations. This coverage is typically limited to 12 months, though a few policies may allow for longer coverage periods.
Property Insurance for Small Business in Saginaw
- 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 do more than just force you to temporarily stop business operations, they can also lead to substantial property damage to the assets owned by your Saginaw business. Fortunately, property insurance covers your business-owned property, including such things as computers, machinery, tools, inventory, outdoor signs and furniture. Your business may benefit from other types of property coverage, such as inland marine insurance, bailee insurance, spoilage insurance, and boiler and machinery insurance. That is why it is advantageous to work with an experienced Trusted Choice Agent, who can make appropriate coverage recommendations when you are building your Saginaw business insurance package.
Workers' Compensation for Saginaw Businesses
As is the case with most states, Michigan has workers' compensation requirements for employers. In Michigan, all public businesses that have employees must carry workman’s comp insurance. Privately owned businesses have other requirements, but most that have at least three employees are also required to carry this insurance. Workman’s comp insurance provides coverage for medical costs related to injuries or illnesses that may be sustained by employees while doing their jobs. It may also provide death benefits to survivors in the event that injuries prove fatal. Often, work-related injuries necessitate employees to take time off while they recuperate. Workers' compensation insurance provides coverage for these lost wages as well.
Employee Coverages for Small Businesses in Saginaw
- 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
When the Patient Protection and Affordable Care Act was passed in 2010, it included an “employer mandate,” which requires all companies that have at least 50 full-time employees to provide them with subsidized health insurance coverage. Even if it is not mandatory for your small business, providing your employees with benefits such as health and life insurance may be a good idea, as it can help you attract and retain a talented workforce. If you are interested in looking into these types of insurance plans, your Trusted Choice Agents can help you find affordable options.
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
A relatively new type of liability coverage, cyber crime insurance has become increasingly necessary as cases of electronic data theft are on the rise – particularly in Michigan. If you use computers or other electronic means to collect or store sensitive personal and financial data about your customers or employees, this insurance may be a very good idea for your Saginaw business. It protects your company from large financial losses related to lawsuits if hackers manage to access information that puts these individuals at risk for identity theft and fraud. You can get more information about cyber crime coverage by speaking with your local Trusted Choice Agent.
Find the Right Saginaw Commercial Insurance for Your Business
Every business has specific risks and exposures that can vary according to its industry and size, and the services it provides. When you work with an independent agent in the Trusted Choice network, you will have access to an experienced professional who can explain your various coverage options, make appropriate policy recommendations and provide you with an easy way to compare customized Saginaw business insurance quotes. This will enable you to find the best coverage to meet your company’s needs at an affordable price.
Shopping for business insurance on your own can lead to coverage gaps and overpriced policies, so turn to an independent insurance agent for help. There are several Trusted Choice Agents with offices in Michigan, and many are located in and near Saginaw. Find an agent near you to learn more.