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Which insurance policies are recommended for Detroit businesses?
Detroit is seeing an incredible increase in small businesses. Here are the most common small business insurance policies for Detroit companies.
General liability insurance
A general liability policy pays for legal costs from customer accidents, along with defamation and copyright infringement claims. Commercial leases in Detroit often require this coverage.
BEST FOR
- Customer accidents at your business
- Damage to a customer's property
- Slander and other advertising injuries
Professional liability insurance
A professional liability policy covers legal costs related to claims of negligence, such as advice that caused a client to lose money. It's sometimes called errors and omissions insurance (E&O).
BEST FOR
- Mistakes that cause financial loss
- Accusations of professional negligence
- Missed deadlines
Cyber insurance
Cyber liability insurance helps small businesses in Detroit recover after a data breach or a cyberattack. Every business that handles customer information should have this coverage.
BEST FOR
- Data breach notification costs
- Fraud monitoring services
- PR campaigns after a breach
Business owner’s policy
A business owner's policy, or BOP, is an affordable way to buy general liability coverage and commercial property insurance together. It's recommended for low-risk small businesses in Detroit.
BEST FOR
- Customer slip-and-fall injuries
- Damaged business property
- Theft and vandalism
Workers’ compensation insurance
Workers' comp is required for Michigan businesses with one or more employees. It also covers work-related injuries for sole proprietors, which health insurance may deny.
BEST FOR
- Medical bills from job-related injuries
- Disability benefits
- Legal fees from workplace injuries
Commercial auto insurance
All vehicles owned by Detroit businesses must be covered by commercial auto insurance. This policy primarily covers injuries and property damage caused by your vehicle.
BEST FOR
- Injuries from an auto accident
- Damage caused by your vehicle
- Lawsuits from an auto accident
Errors and omissions insurance
E&O insurance protects consultants and professional services against legal defense costs from dissatisfied clients. It's also called professional liability insurance.
BEST FOR
- Errors and oversights
- Breach of contract
- Professional negligence
Commercial property insurance
This policy covers physical damage to a Detroit business's building and its contents, including any computers and equipment. You can bundle it with general liability in a BOP.
BEST FOR
- Burglaries
- Fires
- Storm damage
Commercial umbrella insurance
An umbrella policy provides coverage once the limit is reached on your underlying general liability insurance, commercial auto insurance, or employer's liability insurance.
BEST FOR
- Customer lawsuits
- Auto accident lawsuits
- Employee injury lawsuits
Looking for different coverage? See more policies.
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Which business insurance policies are required in Detroit, MI?
State and local laws can determine the type of insurance you need. These policies help you comply with Michigan business insurance requirements.
Workers' compensation insurance
Detroit businesses with one or more full-time employees are required to carry workers' compensation insurance. Full-time is defined as over 35 hours per week for 13+ weeks in a calendar year.
Self-employed small business owners and sole proprietors are not required to have workers' compensation, but may still want to consider purchasing it to protect themselves.
Workers' compensation insurance protects your business in the event that you or one of your employees is injured on the job. It covers medical and legal costs, as well as lost wages from an injury.
Commercial auto insurance
All Detroit businesses with company-owned vehicles are required to have a commercial auto policy to protect against accidents that happen during the course of business operations, such as transportation or deliveries.
Michigan requires a minimum coverage of:
- $50,000 per person bodily injury liability
- $100,000 per accident bodily injury liability
- $10,000 for property damage that occurs in another state
- $250,000 personal injury protection (PIP)
Semi-trucks and other large cargo vehicles may require additional insurance in Michigan.
How much does business insurance in Detroit cost?
Small businesses in Detroit don't have to pay a lot for commercial insurance. Here are a few average costs for Michigan businesses:
General liability: $44 per month
Workers' comp: $46 per month
Professional liability/E&O: $66 per month
Business insurance costs depend on factors such as:
- Type of business
- Business revenue
- Business operations
- Number of employees
- Policy limits and deductibles
- Claims history
How to get insurance for your Detroit business
View video transcript.
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Are you ready to get insurance coverage for your Detroit business? Complete Insureon's easy online application to get a quote today from top-rated providers.
FAQs about Detroit business insurance
Review answers to common questions about Detroit business insurance.
How do I get a certificate of insurance for my business?
Getting insurance for your small business is fast and easy. You can often get coverage within 24 hours. Follow these three simple steps to secure your coverage today:
- Complete Insureon's easy online application to get quotes from leading insurance companies.
- Pick the best policies for your business insurance needs and submit a payment online.
- Download a certificate of insurance by logging into your account.
Can my business be held liable for a data security breach?
Small businesses in Detroit are required to inform residents if cybercriminals have compromised their personal information in a data breach.
Michigan State law defines personal information as a person's first name or first initial and last name, along with a Social Security number, driver's license or state ID number, financial account numbers, credit/debit card numbers, and security code.
Small business owners are responsible for protecting customers' private information, and informing them of a security breach can be costly. Cyber insurance can help manage the costs of data breaches for Detroit small businesses.
Does my industry affect Detroit insurance requirements?
Yes, your industry may impact the type of insurance you need for your Detroit business.
Examples of industries that may need additional types of insurance include:
- General contractors often need to carry general liability insurance or surety bonds to take on certain contracts.
- Cannabis businesses cannot operate without product liability insurance with a $100,000 limit for bodily injury liability.
- Notaries public in Detroit are required to have a $10,000 surety bond in order to do business in the state.
- Lawyers acting as interim administrators must obtain professional liability insurance under certain conditions.
- If you have a physical storefront, you may be required to carry commercial property or casualty insurance by your property management company.
Some professionals, such as realtors, photographers, and cleaning businesses, may not need specific insurance policies to operate, but they should consider obtaining business insurance coverage to protect against the common risks and liabilities of their profession.
Some cities and counties may have additional insurance requirements based on your industry and profession.
How can I get help starting a small business in Detroit, MI?
If you're interested in starting a small business in the Motor City, you're not alone. Detroit has become a popular destination for new business ventures.
For support getting started, take a look at these helpful resources:
- Detroit Means Business has plenty of resources for small businesses, including workshops, digital training and resources, and funding opportunities.
- Invest Detroit offers technical and financial assistance to small business owners in Detroit, as well as real estate support to enhance neighborhood development.
- Motor City Match provides grant funding for small business owners.
- Michigan Economic Development Corporation offers loans and grant programs, workforce development support, and assistance for scaling small businesses. MEDC serves Detroit, Lansing, Grand Rapids, and other cities.
- Detroit Economic Growth Corporation helps small business owners establish their Detroit businesses through training, education, funding, and more.
- Michigan Small Business Administration connects Detroit businesses with business guides and financial support.
Small businesses may be required to obtain insurance coverage or a surety bond in order to obtain loans or financial services.
How can I save money on Detroit business insurance?
Insureon helps you save money on your small business by providing free quotes from top insurance agencies with one easy application. With these quotes, you can compare coverage and pick the best policies for your needs.
Some other ways to save include:
- Bundle your policies. Policy bundles, such as a business owner's policy, typically come with a decent discount.
- Pick a less expensive policy option. Shopping around and finding a budget-friendly policy will save you money each month.
- Remain compliant and keep your workplace safe. The fewer incidents and lawsuits faced by your business, the lower your premiums will be.
Read more about finding cheap business insurance.