Small businesses are essential to the economy of Michigan and employ millions of people. The state doesn’t require general liability insurance, but many clients and employers do. It can protect your business from lawsuits that can lead to bankruptcy. Below are six of the best general liability insurance companies in Michigan to choose from.
- The 6 best general liability insurance companies in Michigan
- What does general liability insurance cover in Michigan?
- Why small businesses in Michigan should acquire general liability insurance
- How much does general liability insurance cost in Michigan?
- What impacts how much I’ll pay for general liability insurance in Michigan?
- How to find cheap general liability insurance in Michigan
The 6 best general liability insurance companies in Michigan
- CoverWallet: Best for comparing online quotes
- NEXT: Best for quick online quotes
- The Hartford: Best for insurance from a reputable company
- Liberty Mutual: Best for specialized coverage
- Chubb: Best for customer service
- Nationwide: Best for mid-size businesses in Michigan
CoverWallet: Best for comparing online quotes
CoverWallet is a broker specializing in business insurance and not an actual insurance company. They gather quotes from other companies and provide you with a selection of options for easy comparison. However, only companies they partner with will be included in the results.
Below is a quote for a food truck business that makes $300,000 in revenue annually and has one owner and two employees.
NEXT: Best for quick online quotes
NEXT offers fast quotes after providing a bit of information about your business. Once you have a quote, you can purchase the insurance then manage your policies online. If you decide to buy two or more policies, you also get a 10% discount. In addition, the quote tool will recommend other policies you might need.
NEXT has very few complaints on the Better Business Bureau, which is uncommon as much as it is used. It also lets you make payments annually or monthly without extra charges.
It takes us less than 10 minutes to get this quote for a cleaning business in Michigan with 3 full-time employees, $200K in payroll and $350K in annual revenue.
The Hartford: Best for insurance from a reputable company
One of the most reputable companies for general liability insurance is The Hartford. They have lots of experience due to being in the industry for so long. As such, you know they will be at your side if you file a claim.
In theory, online quotes should be easy to get from The Hartford. However, when trying to enter a business’ information, we couldn’t successfully receive a quote.
However, this company has insurance in every state, so you can get it no matter where your business is located. It also offers auto, renters, and home insurance.
Liberty Mutual: Best for specialized coverage
Liberty Mutual offers general liability insurance and tons of other business policies. Businesses that need general and specialized policies can get them from Liberty Mutual. Some of the more unique include:
- Absence management
- Equipment breakdown
- Merges and acquisitions
- Third-party administration
- War and terrorism
However, Liberty Mutual doesn’t offer online quotes. Instead, you need to make a call and speak with an agent. This ensures the coverage is tailored specifically for your business. Those who want a quick quote might find this less than ideal.
Chubb: Best for customer service
Chubb is one of the largest insurance companies around the globe. Some personal insurance is available, but the focus is business insurance. They have a long history and lots of experience with insurance for businesses of all sizes.
This brand ranks well on the JD Power Study and has nearly perfect reviews from users. If you need to speak with an agent, it can take some time, but the customer service is exceptional.
Chubb does offer small business quotes online, but they may direct you toward an agent, as they did for our quote.
Nationwide: Best for mid-size businesses in Michigan
Nationwide is a highly reputable insurance provider with an illustrious history. They offer both business and personal insurance options. This is a reliable choice as the brand has excellent financial strength and ranks in the top 10 business insurance companies in the JD Power Customer Satisfaction survey.
Nationwide offers many business insurance options, including general liability, professional liability, product liability, workers’ compensation, commercial auto, commercial property, cyber security, and more. However, no quotes are offered online. Instead, you’ll need to speak with an agent to select a policy.
What does general liability insurance cover in Michigan?
There are four basic things covered by general liability insurance. These include:
- Advertising injury
- Product liability
- Third-party bodily injury
- Third-party property damage
No matter what business you have, you need general liability insurance when you deal with customers at a physical location. For example, a customer could trip over something and sue for medical expenses. Accidental damage is also covered. The same applies to being sued for libel or slander.
What doesn’t general liability insurance cover?
General liability insurance is essential but doesn’t cover every situation. Some things it doesn’t cover include:
- Damage done on purpose
- Illegal acts
- Cybercrime and data breaches. You will need cyber insurance coverage for this protection. Learn more at the best cyber insurance companies and the best data breach insurance companies.
- Damage to property of your own. You will need commercial property insurance for this protection, or Business Owners Policy (BOP) which combines general liability and commercial property coverages in one single policy. Learn more at the best commercial property insurance companies and the best BOP insurance companies.
- Injuries to your employees. You will need workers comp insurance coverage for this. It is actually required in Michigan state laws that all small businesses must have workers comp insurance if they have employees, even just one. Learn more at the best workers comp insurance companies and the cheapest workers comp insurance companies.
However, destructive and illegal actions are not covered.
Why small businesses in Michigan should acquire general liability insurance
Lawsuits can be costly, with lawyers charging you over $100 an hour. This doesn’t even account for the emotional toll of being sued. One lawsuit can cause a small business to go under. In addition, with some companies such as contractors, especially construction contractors, clients will expect you to have insurance before doing a job for them. Learn more at the best general liability insurance for contractors and construction general liability insurance.
How much does general liability insurance cost in Michigan?
The Michigan general liability insurance cost ranges from $300 to $4,600 a year in most cases. Of course, the type of business, amount of risk, and what you do will also have a factor. As shown above, the cost of Michigan general liability insurance varies. Make sure to use a broker or shop around to get the least expensive coverage.
What impacts how much I’ll pay for general liability insurance in Michigan?
Several factors go into the price you pay for insurance. Some include:
- Claims history
- Work location
- Number of employees
- Work industry
- How long you have been in business
How to find cheap general liability insurance in Michigan
General liability insurance is essential for Michigan small businesses. It’s the best way to protect your business and it is often inexpensive. Follow the tips below to make the price the lowest possible, so you stay protected:
- Shop around to get the best price. Use a digital broker or get quotes from three to five companies.
- When renewing a policy, shop around again to make sure you have the best price.
- Ask about discounts for bundling or taking a risk assessment.
Similar to auto insurance, having a good record of keeping general liability insurance will help with the price. This is another reason to ensure you continuously have a policy.
Small businesses in Michigan need general liability insurance. It’s often not expensive and gives peace of mind so you can focus on business growth. Once you know what coverage you need, get quotes from several companies to choose the best available for your needs at a budget that works for you.