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.