The dream of owning a Michigan business is becoming a reality for thousands of people each year, but that dream is lost if your company were to suffer a property or liability loss and you did not have business insurance to protect your business.
You need business insurance to protect your office equipment such as copiers, fax machine, computers or inventory that your busy may sell. Also, business liability, loss of income, exterior signs and many other essential items could put your business in jeopardy if you did not have adequate business insurance to cover them.
One of the most critical parts of business insurance is property coverage. The business insurance protection is important in covering either your building or the contents inside. This coverage is crucial if you operate a storefront or rent or own the building in which you conduct your business.
Business Insurance Coverage
A. Buildings coverage includes buildings and related structures that you have listed on your business insurance policy including:
- Permanently installed fixtures, machinery, and equipment
- Outdoor fixtures and signs
- property used for maintenance of premises such as outdoor furniture, floor coverings, and appliances.
B. Business Personal Property coverage covers property located in or on the buildings named on the policy or within 100 feet of the location this coverage can also include property that you own or lease that you use for business purposes. Coverage provides for improvements and betterments made by you for your business and property of others in the care, custody, and control of the insured. This would be equipment that you lease to use for your business.
- The leased property which the business is contractually responsible for.
- Tenants improvements and betterments made to the interior or exterior of the building
C. Business liability
Liability will protect your business financially against costly claims and lawsuits covered under your policy.
Business liability provides coverage for your legal liability to pay for covered property damage, bodily injury, or personal and advertising injury resulting from business operations to which this insurance applies. Usually, it will also provide for the payment of your defense against these claims or lawsuits.
D. Loss of Income
Loss of income covers up to 12 months of lost revenue if your business shuts down because of an accidental direct physical loss covered by the policy. This coverage includes necessary Extra Expense you incur during the period of restoration after the same claim. Some companies may provide a more extended period of loss of income coverage.
What may not be covered by Michigan business insurance policy:
Although your Business Insurance coverage is pretty comprehensive, it does not protect against every loss. Examples of things which are usually excluded from your business insurance coverage:
Medical expenses for the business owner or employees.
Damage caused by normal wear and tear, insects, birds, or rodents.
Damage caused by settling, deterioration, contamination, or nuclear hazard.
Water damage caused by flood or underground water.
Earth movement, such as earthquake or landslide.
Michigan Business insurance endorsements to cover additional coverage:
- Earthquake and Volcanic Eruption
- Employee Dishonesty
- Utility Interruption Loss of Income
- You may be able to increase your liability coverage for an extra charge with these options:
- Garage Liability
- Hired Auto
Click Michigan business insurance agent for more information on how to protect your business from losses.
Finally, business insurance does not cover workers compensation if your employees are hurt on the job. A separate policy will be required if your business has employees. Please click our worker’s compensation link for more information on What is covered under a Michigan workers compensation policy.