Michigan Commercial Property Insurance Policy Information
Michigan Commercial Property Insurance. If you own a business, a big part of being a responsible business owner is protecting your business with MI commercial property insurance. This type of insurance protects your business from liability due to a variety of different potential losses. Most businesses that experience a sudden catastrophe or loss find that it is difficult or even impossible to recover. Whether it's an earthquake, a major storm, a fire, vandalism, theft, or other event, perils are all round you as a business owner, and mitigating them with commercial property insurance makes sense.
The U.S. business sector faces billions of dollars in losses each year. Fire alone causes as much as $2.6 billion in property loss for businesses each year. Around four in ten businesses, when forced by a natural disaster or other major event to shutter their doors never open them again. Of those that are able to continue, around one in four closes up shop within the year. This is why Michigan commercial property insurance is so important.
Michigan commercial property insurance protects your buildings and business belongings from theft, damage and loss with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Property Insurance to Keep Your Company Safe from Perils
While no insurance product can steer the winds away from your business or prevent a customer from slipping in your reception area and becoming injured, a Michigan commercial property insurance policy can help to reduce the financial fallout of a claim against you or destruction or loss of your business' property. By tailoring a policy that meets your needs, you reduce the risk of the perils faced by your business, so you can have peace of mind that if Mother Nature or a disgruntled client come calling, you're ready for them.
Keep in mind that not all of the coverages discussed below are available in all states, your commercial agent can help you determine which are and which your business needs to assure its safe passage from peril.
- Recovery aid after losses. The amount of time it takes your company to rebound after a loss is important. Minimizing the loss of operation time is a crucial part of continuity, retaining customers, and ensuring your share of the market in your niche. The right Michigan commercial property insurance can do just that for you.
- Replacing items lost. Lost equipment, damaged equipment, material goods, and inventory must be replaced quickly. Insurance can help.
- Extraordinary costs of recovery and lost business income. If your business experiences down time following a loss, this cuts into your bottom line. With the right Michigan commercial property insurance policy in effect, these sorts of expenses are covered.
- Protection from multiple perils. If your business is at risk for many perils at once, then a commercial property policy that covers multiple potential threats is essential, whether the threats are from fire, wind, vandals, or unhappy customers.
- Commercial property coverage. Minimizing the disruption caused by vandals and thieves is a lot easier if you have adequate Michigan commercial property insurance.
Other Ways to Mitigate Business Risks
While it is easy to buy insurance, there are other ways to augment your Michigan commercial property insurance to reduce the number of claims against your business. The cost of purchasing your insurance is largely based on the risks you face. To reduce your rate, you can use the following best practices:
- Ensure site safety. Keep to a regimen of ensuring the safety of your site. Spot any risks and take steps to correct them.
- Shore up data security. If your computer is an integral part of your business, be sure to safeguard the security of customer's data. Store back-ups of data off site, lessening the chance of the data being breached.
- Lessen the risk of smoke and fire damage with a sprinkler system.
- Protect your business from disruption with an electrical generator.
- Screen employees fully before hiring to reduce the risk of possible problems with theft.
Ensuring these areas are taken care of goes a long way toward ensuring your business gets top rates and that insurers extend the Michigan commercial property insurance policies to your business that best reflect your individual needs.
Work with an business agent who specializes in Michigan commercial property insurance to ensure that you get the best possible advice on the policy coverage types that you must maintain for your business and the right level of policy limits to cover any potential threat faced by your business.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Commercial Property Insurance
Read up on small business commercial property insurance, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.
- Apartment Building
- Business Interruption
- Commercial Flood Insurance
- Commercial Property
- Condo Association
- Equipment Breakdown Protection Insurance
- Homeowners Association Insurance
- Inland Marine
- Manufacturing And Mercantile Rental Property
- Mobile Home Park
- Non-Residential Building Operators
- Office Buildings
- Shopping Center & Strip Mall
- Vacant Land
- Vacant Property
Rental property owners, real estate developers and property managers should keep an accurate survey of each property they own or that is in their care. This survey should include inventories of furnishings and equipment at those properties. These documents establish the extent of their insurable interest, facilitate the arrangement and placement of insurance and minimize controversy and confusion if a loss occurs.
Insurance coverage on property, general liability and professional or errors and omissions liability should be arranged and placed for every real estate and rental property risk.
The main goal of any commercial property insurance program is to protect the insured's real and business personal property. Buildings and their contents property usually represents a significant portion of its total assets, regardless of the size of the business. A commercial property program can provide the coverage you need if a loss should occur.
The ISO Commercial Property Building and Personal Property Coverage Form is an insurance industry standard that provides this needed coverage. As a result, it should always be reviewed and used as a benchmark for comparison when evaluating any commercial property coverage form.
This policy treats business personal property as more than just the contents of a building. When there is a limit of insurance on the declarations, property can be covered if inside the building or structure or within 100 feet of the building or premises and either in the open, or even in or on a vehicle.
There are many endorsements available to tailor the ISO Commercial Property Coverage Forms. Some are mandatory for all policies while others are mandatory for specific classifications and types of business. Others are optional and permit a standard form to be customized to meet a specific risk's coverage needs. Endorsements broaden, restrict, delete, modify, or add coverage.
These policies can provide the following additional coverages for small specific limits of insurance: debris removal, preservation of property, fire department service charge, pollutant clean up and removal, increased cost of construction and electronic data.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Contractors' Equipment, Fine Arts, Cyber Liability, Employment-related Practices, Automobile Liability and Physical Damage, and Stop Gap Liability.
Request a free Michigan Commercial Property insurance quote in Adrian, Allen Park, Allendale, Ann Arbor, Auburn Hills, Battle Creek, Bay City, Berkley, Beverly Hills, Big Rapids, Birmingham, Burton, Cadillac, Clawson, Coldwater, Cutlerville, Dearborn, Dearborn Heights, Detroit, East Grand Rapids, East Lansing, Eastpointe, Escanaba, Farmington, Farmington Hills, Fenton, Ferndale, Flint, Forest Hills, Fraser, Garden City, Grand Haven, Grand Rapids, Grandville, Grosse Pointe Park, Grosse Pointe Woods, Hamtramck, Harper Woods, Haslett, Hazel Park, Highland Park, Holland, Holt, Inkster, Ionia, Jackson, Jenison, Kalamazoo, Kentwood, Lansing, Lincoln Park, Livonia, Madison Heights, Marquette, Melvindale, Midland, Monroe, Mount Clemens, Mount Pleasant, Muskegon, Muskegon Heights, New Baltimore, Niles, Northview, Norton Shores, Novi, Oak Park, Okemos, Owosso, Pontiac, Port Huron, Portage, Riverview, Rochester, Rochester Hills, Romulus, Roseville, Royal Oak, Saginaw, Sault Ste. Marie, South Lyon, Southfield, Southgate, St. Clair Shores, Sterling Heights, Sturgis, Taylor, Traverse City, Trenton, Troy, Walker, Warren, Waverly, Wayne, Westland, Wixom, Woodhaven, Wyandotte, Wyoming, Ypsilanti and all other cities in MI - The Great Lakes State.
Also learn about Michigan small business insurance requirements for general liability, business property, commercial auto & workers compensation including MI business insurance costs. Call us (313) 344-7177.