Why your home business needs commercial insurance

You may think that because your business is located in your home, your home insurance provides all the coverage that you need. That is not the case. Home insurance is not designed to protect a home business, and you can be left unprotected if you decide to save money by not adding commercial insurance. At North Coast Insurance Services in Lexington, MI we are here to offer you the advice that you need. 

Home property insurance

Home property insurance is different from commercial property insurance. Commercial property insurance not only protects the premises, but it also protects all the things that you use to conduct business. Depending on what your business is, this may include tools, inventory, raw materials, and a lot more. You may find that your home insurance won’t cover most of your losses from your business. This could be an expensive omission. 

Home liability insurance

Home liability insurance protects you against legal actions taken against you if someone is injured at your home or by a member of your family at home or away. What it won’t cover is people who come to your home to do business with you. So, if a client or customer comes to visit and falls, you won’t be covered by your home insurance. This makes having commercial liability a necessity. 

If you have any employees as a part of your home business, you may need to have workers’ compensation coverage. If you have three or more employees or one employee who works 35 hours a week for 13 weeks or more, then the state mandates that you have this coverage. It is not something home insurance can cover. 

Consult With Us

Contact North Coast Insurance Services in Lexington, MI to discuss with us the ramifications of not having the right insurance for your home business. 

How do Michigan businesses benefit from commercial insurance?

In the Lexington, MI area, small business owners will find they have a lot of opportunities to be successful. There is a strong economy and a growing population that can help any company grow. If you would like to start a business here, you may find that it is a good idea. However, there are risks that come with running a business as well. One way to offset these risks is by getting insurance.

A Michigan business can benefit from commercial coverage in various ways:

Financial Protection

One of the reasons that a business should always have commercial coverage is to receive financial protection. A commercial plan can protect your financial viability in several ways. To start, you will have coverage for all of your business assets. This will be helpful if you are a victim of theft, fire, or other forms of loss. A commercial plan will also give support if you are named liable for an accident that comes with damages as it will include a liability insurance provision. 

Meet Obligations

You can also benefit by having commercial coverage as you will meet all obligations. Most businesses will sign various documents and agreements that require insurance. These include agreements with banks, investors, and certain clients. When you are insured with a commercial plan, you will remain in good standing with such requirements. 

Reach Out To Us

Being a business owner or manager in the Lexington, MI area has continued to be a great option and career path to consider. When you are looking to build a business here, it is very helpful to call our team with North Coast Insurance Services. When you call our professionals with North Coast Insurance Services, you can learn more about commercial insurance, and we can help you build and establish a new commercial plan. 

Who Should Consider Obtaining Commercial Insurance?

Business owners and contractors in Lexington, MI are not legally mandated to obtain general commercial liability insurance, though employers with one or more employees working 35-plus hours a week must have worker’s compensation indemnification by law. This also applies to situations where three or more staff members are employed concurrently, regardless of hours worked each week. 

Consider Obtaining Commercial Insurance

One reason you may need to consider purchasing a commercial policy is that businesses and potential clients can require you to be covered, citing this stipulation in their contracts. This protection helps provide security for all parties in your day-to-day operations and enables you to engage in business with a greater pool of clientele. 

Commercial insurance serves to shield you from financial loss in the event of unforeseen occurrences. Depending on your industry, the risks you face can include damage to your property from severe weather or fire, causing your building to undergo extensive repairs. Theft and vandalism may also be potential threats. Your physical assets, such as heavy equipment, can be liable for breakage through accidents or other employee actions.

Your knowledgeable North Coast Insurance Services agent can discuss your needs in more detail and will be happy to tailor a policy specifically to your needs. If you welcome customers, subcontractors, and visitors onto your premises, you may wish to consider the potential liability in the event of slips and falls and the resulting costs, such as medical bills and lawsuits. In addition, you may be responsible for any monetary issues that arise due to faulty products, advertising mistakes, or services rendered. 

Contact Us Today

North Coast Insurance Services is available to answer any questions you may have regarding the types of commercial coverage we offer, and we invite you to reach out to us today. We take pride in serving the Lexington, MI region, and we look forward to working with you. 

Required Commercial Insurance in Michigan

When you run a small business in Michigan, there are certain laws about the kinds of commercial insurance that some business owners are required to have. Getting commercial insurance protects you and your business from having to pay out enormous costs after there has been an accident in either the workplace or a company car. Having these commercial insurance policies in place also keeps you legal so that you won’t have to worry about facing any fines for not having them. If you need these policies or any other commercial policies, call us now at North Coast insurance Services in Lexington, MI.

Workers’ Compensation Insurance

This type of insurance policy is required for all Michigan businesses that have at least one employee who is full-time. This coverage pays the medical bills owed after someone has an accident in their workplace. This protects businesses by avoiding lawsuits, and it protects workers by making sure that there are the needed funds if an accident should take place. This is valuable insurance for virtually every type of business.

Commercial Auto Coverage

If your business won a vehicle, state law requires that you have a commercial auto insurance policy on it. The state requires a specific set amount of bodily injury liability for one person who becomes injured in a vehicle accident and another amount required for everyone who becomes injured in a vehicle accident. The state has a standard minimum amount for this coverage, but the amounts are very low when compared to other states. It’s usually recommended that you add to the required coverage. You may also want to get other types of coverage such as collision insurance. 

Get Your Commercial Insurance Policies

If your small business needs commercial insurance, we are just a phone call away. Call us at North Coast insurance Services in Lexington, MI.

Myths about Commercial Insurance

To make sure your business in Lexington, MI, is protected, it helps to know more about commercial insurance so you don’t give in to these myths.

  • Home Insurance Covers Home-Based Business: Your home insurance is not enough to protect your home-based small business. It would be best if you had proper business insurance that meets your business’s needs to ensure that your operations are protected against a variety of claims. An agent at North Coast Insurance Services can get you started.
  • General Liability Covers Every Possible Risk: General liability is needed, but it’s not a one-size-fits-all solution for all business-related risks.
  • Employees Drive Their Own Cars So You Don’t Need Commercial Auto Insurance: Many personal auto insurance policies don’t cover any losses when a vehicle is being used for business purposes. As a business owner, your employees must know what personal policies cover and don’t. There are different advantages to commercial auto insurance, including coverage for GPS equipment and rental vehicles.
  • The Business Is Too Small for Insurance: Even if your business is small in Lexington, MI, it’s not just businesses with deep pockets that should be concerned about being sued. Anyone can be sued. If you are found liable for damages and can’t pay, wages can be garnished, and bank accounts and assets seized.
  • Property Insurance Isn’t Needed if Operations Are Done in the Client’s Area: Some owners think the work is in the client’s area, using the client’s equipment and tools, that they don’t need property insurance. Coverage for property insurance varies. Companies should find a policy that suits their needs.
  • You Don’t Need an Insurance Agent: Some owners don’t get professional advice when choosing their business coverage. Since there are so many different coverage variations, it’s best to speak with a qualified agent to find the right coverage for your business.

Contact North Coast Insurance Services to get a quote on commercial insurance.