Between 2011 and 2019, a whopping 7,182 Michigan businesses declared bankruptcy. Many of these bankruptcies could have been avoided if the companies had been protected by suitable business insurance policies. Independent insurance agents in Southgate can help you find the right coverage for your company.
There are several different policies and coverage options available to business owners. This can make it difficult to determine which policies are right for your company. Independent agents make shopping for coverage easy by helping you identify your company’s various exposures and finding the best and most affordable policies to cover against each of them.
Set up a one-on-one consultation with an insurance agent near you to learn more and to start comparing customized business insurance quotes.
How Much Does Business Insurance Cost in Southgate, MI?
The cost of business insurance can vary significantly from one company to the next. While a sole proprietor may only spend a few hundred dollars a year, a larger company with several employees can spend several thousand dollars.
Your costs can be influenced by factors such as:
- The size of your business and its annual revenues
- The number of people you employ
- The value of your company’s assets
- Whether your company owns and operated vehicles
- The liability risks associated with businesses in your industry
- Your company’s claims history
- Whether you own or rent the building where your business is housed
Because every company has its own specific risks and exposures, the only way to find out how much a comprehensive business insurance policy package will cost you is to start requesting customized quotes from insurance companies.
This is where an independent insurance agent can really help. These local agents can help you figure out which insurance products are suitable for your company and can obtain quotes for each of these policies from multiple insurance providers.
Sometimes, the way to get the best price for coverage is to purchase policies from multiple providers. Don’t worry. When you work with an independent insurance agent, you will still only have one point of contact for all of your coverage.
Talk to an independent insurance agent near you to learn more.
Why Do Businesses in Southgate Need Liability Insurance?
Businesses can sometimes wind up on the wrong end of a liability lawsuit, and when this happens things can get very expensive. Having the right liability insurance policies in place can help your company avoid large financial losses.
Liability insurance products are designed to absorb expenses like court costs, legal defense fees, and financial damages if your company is sued for a covered event.
You will want to be sure that your business is suitably covered against all the potential liability risks it faces. Local independent insurance agents can perform a complete risk assessment on your business and can offer the right products to cover against each of its exposures.
Some of the products your agent may discuss with you include:
- Premises liability insurance: This can cover third-party injuries or property damage that occur due to accidents that take place on your business property and can be blamed on your company’s negligence.
- Product liability insurance: This can cover third-party injuries or property damage caused by a defect or design flaw in a product your company produces, sells, or promotes.
- Cyber liability insurance: This can cover your company’s financial responsibilities and damages if hackers break into your business’s computer system and access sensitive data like your customers’ financial and personal information.
- Employment practices liability insurance: This can cover your business against accusations of wrongful termination, discrimination, harassment, retaliation, or any other illegal employment practice.
- Commercial vehicle liability insurance: This can cover your business against the increased liability risks it can face if one of your employees causes an accident while operating a company vehicle.
- Liquor liability insurance: This can protect businesses that serve alcoholic beverages. It is important because if an intoxicated patron goes on to cause injuries or property damage to someone else, Michigan’s dram shop laws allow injured parties to sue the establishment that provided the alcohol if it was served to a minor or to a visibly intoxicated adult.
Talk to your insurance agent to get more in-depth information about these and many other commercial liability products that may be a good fit for your Southgate business.
What Are the Property Damage Risks in Southgate, MI?
Businesses in Southgate are most likely to experience loss or damage due to hazards like property crimes, accidental fires, electrical storms, windstorms, tornadoes, hail, heavy snows, and freezing temperatures.
Commercial property insurance can cover your business property against loss or damage caused all these hazards.
There are additional property coverage products that may also be necessary for your business property to be fully covered. These include:
- Commercial flood insurance: This is important because flood damage is specifically excluded from commercial property insurance coverage. Businesses located near waterways like the South Branch Ecorse River are most at risk, but when heavy, prolonged rains fall, flash flooding can occur just about anywhere in this city.
- Inland marine insurance: This can cover your company’s portable property during the times that it is in transit or is being stored away from your place of business, such as at a job site or in a warehouse.
- Boiler and machinery insurance: This can cover the cost of repairing or replacing your company’s essential machinery and equipment if it breaks down or malfunctions. It can also cover the associated business losses.
- Bailee's insurance: This can cover your customers’ valuable property whenever it is in your business’s custody, care, or control, such as if you are providing repair, maintenance, or alteration services on it.
Your local insurance agent can explain these coverage options in greater detail and can help you be sure that all of your business assets are suitably covered.
How Does Business Interruption Insurance Help Companies in Southgate, MI?
The risk of tornado activity in Southgate is 35% greater than the national average. Tornadoes that have touched down within three miles of the Southgate city center have included an F1 twister in 1987, an F2 in 1980, and an F4 in 1956.
Disasters in Michigan
- Number of federally declared disasters in MI since 1953: 42
- Most common reasons for declared disasters: Floods, severe storms, and tornadoes
- Average number of tornadoes in MI per year: 16
Major disasters like tornadoes and structure fires have the potential to wreak havoc on your business. If this happens, commercial property insurance alone may not be enough to prevent your company from experiencing large financial losses.
This is because serious damage has the potential to force your business to shut down for several weeks, or even months, while repairs are made. Without an ongoing stream of revenue, many small businesses can be forced into bankruptcy.
Business interruption insurance protects against this risk by providing a continuation of income during the times that your company is forced to shut down for an extended period because of damages caused by a covered event.
This insurance can provide the funds needed for your company to continue paying regular expenses like bills, rent, loan installments, and salaries until you can get back to normal operations.
Talk to a local independent insurance agent for help deciding whether business interruption insurance is a good fit for your Southgate business.
Are Employers in Southgate Required to Carry Worker's Compensation Insurance?
Employees sometimes suffer work-related injuries or occupational illnesses. According to the US Bureau of Labor Statistics, in 2018 more than 91,000 Michigan workers were injured on the job. Of these, 155 injuries were fatal.
If your workers are injured on the job, your company can be held liable for their medical costs and lost wages. That is why, with few exceptions, all employers in Michigan are required by law to carry worker's compensation insurance.
Worker's compensation insurance is designed to cover your employees’ medical treatments, hospital stays, follow-up care, prescriptions, and other related expenses if they suffer a work-related injury or an occupational illness. It can also provide workers with disability pay and other compensation for serious injuries.
The cost for worker's compensation coverage is based mainly on the types of jobs your employees do and the likelihood that they will sustain significant injuries while doing them. The greater the risk, the higher the price. Therefore, it would cost much more to cover a construction worker than a retail worker at the Southgate Shopping Center.
You may qualify for discounts on your coverage if your business has a long-standing record of employee safety.
A local independent insurance agent can help you compare policies and quotes from a few competing providers that specialize in covering businesses like yours. That way, you can be sure that you are getting appropriate coverage at a competitive price.
Are You Looking for Insurance Products for Your Employee Benefits Package?
An attractive employee benefits package, including benefits like health insurance, life insurance, paid vacation, sick time, 401(k) plans with an employer match, and other perks, can help your company recruit and retain a talented pool of employees.
If you are looking to put together a benefits package for your employees, you may need some assistance with finding affordable insurance products to include in it.
When it comes to health insurance products, there are a wide range of policy types and options available to you. For instance, you can choose between HMOs, PPOs, or managed care plans, and can buy policies with various levels of coverage, different copays, and varying deductibles.
Each option has its pros and cons, and the cheapest policy is not necessarily the best policy. This can make it hard to choose.
You may therefore find it beneficial to have the guidance of an experienced insurance professional when you are shopping for products to include in your employee benefits package. Independent insurance agents are ready to help.
Why Work with an Independent Insurance Agent in Southgate, MI?
Insurance companies offer a wide range of business insurance policies and options. This enables business owners to fully customize their policy packages, but it also makes shopping for coverage a bit complex.
Independent insurance agents in Southgate can simplify the process. These agents can perform a detailed risk assessment on your company and can help you choose appropriate products to meet all of your company’s specific coverage needs.
Because they do not work for a particular insurance company, independent agents can shop around to help you find the best policies at the most competitive prices. Find an insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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