7 Best Business Insurance in Michigan for 2023

Thang Truong
Thang Truong
Updated on:

According to the United States Small Business Administration, Michigan is home to almost 870,000 small businesses. They make up 99.6 percent of all businesses in the state. They employ 1.9 million people, which is 49.1 percent of the people working in the state.  

The one thing all these small businesses share in common is that they face significant risks that can be mitigated by insurance.

In this article, we’ll cover the top seven business insurance companies in Michigan. We’ll also provide information about business insurance in general and different types of coverages so you have the knowledge you need to get the right protection at the best possible price. 

7 best small business insurance companies in Michigan

Here are our choices for the best business insurers in Michigan and what makes each unique.

  • CoverWallet: Best for comparing several quotes online
  • biBerk: Best for low-cost business coverage in Michigan
  • Hiscox: Best for Michigan small businesses with unique insurance needs
  • Embroker: Best online insurance buying experience
  • Progressive: Top insurer for discounted Michigan business insurance
  • Simply Business: Best for finding low-cost coverage

CoveWallet: Best for comparing several quotes online

CoverWallet is one of the biggest digital broker specializing in small business insurance. They provide several business insurance coverages to a wide range of industries. So whichever industry your business is in and whatever coverage you need, CoverWallet will find it for you.

They work with many leading small business insurance companies and are able to pull quotes from these companies for you to compare and buy online. If your main goal is to compare several quotes to find the best one for you company, you may want to start with CoverWallet. Their quote is fast and straightforward, it shouldn’t take more than 10 minutes. Below is a sample of workers comp insurance for a small business in Michigan that we pulled from CoverWallet. It took us about 8 minutes to get the quotes.

They deliver a good customer experience, earning A rating on BBB.

biBerk: Best for low-cost business coverage in Michigan

After the last few years of economic uncertainty, few businesses are sitting on extra cash to spend on insurance. If that’s the case with your Michigan based business, biBerk could be the ideal insurer for you. 

biBerk is a low-cost business insurance provider. Despite saving money on your business coverage, you can rest assured knowing you’re still getting quality protection for the operation you’ve worked so hard to build. biBERK is able to lower insurance costs by almost 20 percent because it insures small businesses directly, without the added expense of having to work through a middleman or insurance broker.

You can feel confident knowing biBerk is a part of Berkshire Hathaway, a company headed by well-known investor Warren Buffett. It’s a firm that has millions of satisfied customers that’s been insuring businesses for more than 75 years.

Hiscox: Best for Michigan small businesses with unique insurance needs

Hiscox offers a complete array of business coverages and is a leading insurer that specializes in small business insurance. 

Hiscox makes it easy to purchase all types of business insurance online. You can also speak with experienced business insurance experts who can help you customize your coverage to meet your unique company needs. Hiscox also offers top tier service, provides fast quotes, instant coverage, and quick claims processing.

If you choose Hiscox for your business coverage, you can rest assured knowing you’re entrusting your organization to a firm that’s been in operation since 1901. More than 400,000 companies choose Hiscox for their coverage.

Embroker: Best online insurance buying experience

Embroker is the first fully digital small business insurer. The entire quoting and insurance purchase process typically takes less than ten minutes. They are also known for the first to offer legal malpractice insurance completely online. Lawyers, attorneys, and legal firms can now buy legal malpractice insurance policies and other legal related coverages just within a few minutes. Learn more at the best legal malpractice insurance companies.

Because Embroker is a digital based company, it’s able to pass on what it saves on infrastructure and unnecessary administration to clients. In most cases, Embroker is able to provide the lowest cost insurance in the marketplace. You can also further control your costs by choosing your own policy limits and deductible.

If you’re concerned about working with a virtual agency, you can rest assured knowing you can reach a business insurance expert over the phone, email or chat 24 / 7. In addition, Embroker assigns an account manager to every policyholder who gets to know the ins and outs of their business and the unique risks it faces.

Progressive: Top insurer for discounted Michigan business insurance

Despite the image it projects in its television commercials, Progressive is a serious and reputable company that’s been in business since 1937. The insurer is known for its flexibility, great rates, and highly responsive service.

Progressive is famous for its discounts, which could help you save on your business insurance. You can earn them for things like:

  • Purchasing multiple coverages
  • Implementing safe work practices 
  • Paying annually rather than in smaller increments 
  • Agreeing to autopay.

It’s easy to get a quote online from Progressive. It should take you less than five minutes. 

Progressive is especially known for its commercial auto and commercial truck insurance. They are the biggest provider of commercial vehicle insurance in the country. Learn more at the best commercial auto insurance companies and the best commercial truck insurance companies.

Simply Business: Best for finding low-cost coverage

Simply Business is a broker specializing in small business insurance. They work with many carriers with a focus to help you find low-cost coverage that your business may need, including general liability insurance. They vet the carriers that they work with carefully to ensure that all of them have excellent financial ratings.


  • Easy to get and compare several quotes online
  • Able to get quotes from A-rated carriers which you may not be aware of
  • Knowledgeable agents that are available to help you along the process


  • Quotes online are available for general liability and professional liability only
  • Have to file a claim directly with the carriers

Top Michigan small business industries and the risks that they face

The types of small businesses in the state are diverse and varied. They represent many industries. The top small business industries in Michigan are:

  • Health care and social assistance 
  • Manufacturing
  • Accommodation and food services 
  • Retail trade
  • Professional, scientific, and technical services 
  • General services
  • Administrative
  • Waste management
  • Construction
  • Wholesale trade
  • Finance and insurance
  • Transportation and warehousing
  • Arts, entertainment, and recreation 
  • Educational services
  • Real Estate, rental, and leasing
  • Information.

The one thing Michigan small businesses in all these industries share in common is that they all face significant risks. Some of the key business risks faced by small businesses in Michigan include:

  • Worker injuries
  • Damage to business or client property
  • Cyber incidents
  • Vehicle accidents
  • Theft
  • Lawsuits
  • Fire.

The most important thing Michigan business owners can do to get control over these and other risks is to get business insurance coverage. 

What is business insurance?

Business insurance, also known as commercial insurance, helps protect business owners from unexpected losses.

There are many types of business insurance options to help cover your Michigan based operation for property damage, legal liability, and employee-related risks. 

What is business insurance for?

Business insurance can help you gain control over your company’s risks, which are considerable. It provides you with financial protection against losses that occur while conducting business. When you have business insurance coverage, your insurer helps pay the costs of covered losses up to the limits of your policy. Without coverage, you might have to pay out of pocket, which can easily bankrupt your business. 

Why do I need business insurance in Michigan?

The purpose of the insurance is to help protect your Michigan company from common risks most businesses face, along with industry specific ones. It can protect the financial assets of your company, it’s physical property, employees, and intellectual property from:

  • Lawsuits
  • Property damage
  • Theft
  • Vandalism
  • Loss of income
  • Employee injuries and illnesses
  • And more.

Michigan state laws require that all small businesses in Michigan have commercial auto insurance and workers comp insurance coverages.

What kinds of business insurance do I need in Michigan?

The most common types of business insurance coverage small companies in Michigan typically purchase include:

Workers comp insurance is required for Michigan small businesses

If your business has employees, Michigan, with few exceptions, will require you to carry workers’ compensation coverage.  This insurance provides benefits to your employees to help them recover from work related injuries or illnesses. Some examples of these include:

  • A clerk at your store is stocking shelves, slips off a ladder, and breaks her leg. This makes her unable to do her job.
  • An administrative assistant at your business has been working on a computer while sitting on a cheap old chair and comes down with carpal tunnel syndrome. She is no longer able to do her job because she’s in pain.
  • A carpenter at your cabinet factory has been breathing in saw dust and chemical odors for years and comes down with lung disease. His doctor will not allow him to return to work.

Workers’ comp also pays funeral expenses and death benefits to immediate family members should an employee pass away because of a job related incident. 

Learn more about workers comp insurance and the best workers comp insurance companies in Michigan and the cheapest workers comp insurance companies.

Commercial auto insurance is required in Michigan 

Commercial auto insurance pays for damage to vehicles and property and the cost of medical care if you or an employee is involved in an accident while driving for work related reasons. It is required in Michigan to have commercial auto insurance for your business. Personal auto insurance doesn’t cover you and your vehicle if you drive for work reasons.

If you don’t have proper business vehicle insurance and are involved in an accident when you are driving for work, your personal auto insurance company will refuse the claim and might drop you from their coverage as well. Learn more about the differences between commercial auto insurance and personal auto insurance and why small businesses need to have commercial auto insurance coverage. 

Commercial auto insurance is usually a bit more expensive than personal auto coverage, but without it, you may have to pay out of pocket a lot more. Learn more about the coverage and how to find cheap commercial auto insurance.

General liability insurance in Michigan

General liability insurance, also referred to as commercial liability, helps protect your business against claims of non-employee bodily injury and property damage that happen in your workplace or while your employees are doing their jobs. This includes things like customer injuries that result from a slip and fall in your office or workplace or client property damage that occurs because of a worker incident in a client’s home or business location. 

General liability insurance isn’t required by state law in Michigan for most small businesses. However, it is probably the most popular coverage for them to carry. Learn more about this coverage at the best general liability insurance companies in Michigan and the cheapest general liability insurance companies

What does a Business Owners Policy (BOP) cover in Michigan? 

A Business Owners Policy (BOP) will help protect your business property, income, and financial assets. A BOP typically includes three types of coverage:

Business property insurance protects the buildings your business operates out of, whether you own or rent them and the equipment used to run your company. This includes your:

  • Physical location
  • Tools
  • Inventory
  • Supplies
  • Computers
  • And more.

General liability insurance covers legal claims against your business related to:

  • Bodily injury
  • Property damage
  • Reputational harm, such as libel and slander.

Business income insurance, often referred to as business interruption coverage, helps replace lost income if you can’t operate your business because of property damage that’s covered by your business policy. This includes damage from fire, wind, weather events, and burglaries. Learn more about the best business income insurance companies.

Depending on the specific needs of your business, you can work with your insurance agent or company rep to figure out what other coverages you may need.  

Who needs professional liability insurance in Michigan?

Professional liability insurance covers you and the people who work for you if you’re ever sued by a client for giving them bad advice or not performing services to their satisfaction.

If you are in a business that provides clients with advice or customers with recommendations, you might need professional liability insurance. It’s also called errors and omissions (E&O) coverage in real estate, insurance, or finance, and malpractice insurance in the healthcare and legal professions. 

Coverage details differ by industry and specialty. Use our guides to help you find the coverage that’s right for you: 

Other insurance coverages small businesses in Michigan might need

Check out other protection businesses in your area typically get.

How can I prevent business losses? 

Many business insurers offer programs that can help you reduce business related risks. This includes doing things like eliminating workplace hazards and encouraging safe work practices. By doing these things, you could be able to save on your business insurance costs. Check with your business insurer to find out whether they offer workplace safety programs.

What is the easiest way to get the cheapest business insurance coverage in Michigan?

The simplest way to get small business insurance coverage is through a business owners policy (BOP), which typically bundles together business property and liability coverage. A BOP makes it simple to add on additional types of coverage beyond these.

The types and amount of coverage you need depend on a number of factors including: 

  • Your industry 
  • The size of your business
  • It’s location or locations
  • The number of employees
  • And more.

At a minimum, you probably want to have liability and property coverage through a BOP. And if you have employees, the state of Michigan will likely require you to get workers’ compensation insurance. When you apply for coverage online, it’s likely that the insurer will suggest the additional coverages you should get. An experienced business insurance agent or company rep will be able to recommend coverages to you, as well.

How much does small business insurance cost in Michigan?

On average, a small business in Michigan pays $150 to $650 a month for their business insurance coverages. Premium costs can vary dramatically because they’re based on so many factors including:

  • The age and value of your business property
  • The contents of your property
  • Your business type
  • Where in Michigan it’s located 
  • The limits and coverage options you choose
  • Whether or not you select full or partial replacement cost
  • And more.

What’s important is that you get quotes from multiple providers so you can compare coverages and costs to get the best and most cost effective coverage for your business.

How can I find cheap business insurance in Michigan?

Here are some tips to help you find the coverage you need at a fair price:

  • Shop around. Get quotes from a few companies and compare them to get the coverage you need at the best possible cost. 
  • Don’t stop shopping around. Make sure you get new quotes before you renew your policy.
  • Take advantage of discounts. If they’re not offered to you when getting a quote, ask about them, whether you’re buying online or through an agent.

Taking these steps will help ensure you’re not paying too much for your small business insurance.

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at realtor.com, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

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