Michigan Detective Agency Insurance. Detective or investigative agencies search for and develop facts and information for their clients, which may include individuals and businesses. Most states require detective agencies to be licensed. While some carry firearms, they do not have police authority. The agency may perform general investigative services or specialize in such areas as child custody disputes, pre-employment background checks, relationship conflicts, or missing persons.
While much of their work is simply gathering information, they may be hired to obtain evidence, such as interviews or photographs, for civil lawsuits, or work with insurance adjusters to investigate suspicious claims. They may serve summons or subpoenas for courts, locate debtors, or bail jumpers who run off, or work undercover to document suspected criminal activity.
From gathering information to pinpointing the details about a particular individual, group of people, or even entire organizations, as a detective, you perform a variety of duties for the clients that secure your services. There's no doubt that your work is important, but there are a number of risks associated with owning and operating a private investigations firm. In order to safeguard your business, your clients, your staff, and yourself, having the right type of insurance in place is crucial.
Why do detective agencies need insurance? What policies do detectives need and how much coverage should they carry? Find out more about Michigan detective agency insurance below.
Michigan detective agency insurance protects your investigative services business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
The professionals within your detective agency are specially trained to provide surveillance, conduct searches, and offer protection for the clients that hire you; among other services that you may provide. You acquire personal information and share it with your clients, you work undercover, you deal with the public, and you are constantly exposed to various threats.
What would you do if someone filed a lawsuit against you, claiming that you were harassing them? What if a client stated that you failed to deliver the services you said you would provide? What if a client or a vendor tripped, fell, and sustained an injury while visiting your office? What if a member of your staff was injured while performing work-related duties?
As the owner and operator of the detective agency, you would be held liable for all of these scenarios, which means that you would also have to pay the expenses that are associated with them; medical bills, property damages, legal fees, etc. Having to pay for these expenses out of your own pocket could put you in a serious financial predicament that could potentially lead to bankruptcy; however, if you have the right type of insurance coverage, your insurance company would pay for these costs, which means that you will avoid the repercussions of such exorbitant expenses.
In other words, Michigan detective agency insurance protects you from paying the astronomical fees that are associated with the risks of running a business like yours.
The type of insurance coverage that a detective agency needs will vary from organization to organization. The protections your agency needs depend on a variety of factors, including the specific services you offer, where your agency is located, whether or not you employ a staff, and what type of clients you work with. However, there are specific types of coverage that all detective agencies should have in place, including:
Premises liability exposure is very limited at the office location due to lack of public access. The primary exposure is off site. Depending on services offered, potential for causing either bodily injury or property damage may be considerable. Investigative operations may place workers in a trespass situation. While legal and permissible information gathering is important, the agency must be careful not to infringe on the lawful rights of others.
Background checks, monitoring, and supervision of all employees are required. Personal injury exposures include breach of confidentiality, libel, slander, trespass, invasion of privacy, and unlawful detention. These often fall under the professional liability coverage.
Professional liability exposures vary with the services offered. Where only research is involved, the hazards are minimal: the detective obtains the required information (current address, prior business activity, lawsuits or criminal record), and provides it to the client.
The exposure may be severe in cases of relationship or child custody disputes, tracking down debtors or bail jumpers, and similar investigations. In these cases, the detective may serve as a witness in court. Any inaccuracies or failure to document adherence to legal and professional standards may have serious consequences. If force or threat of force is used, the personal injury hazard, in addition to potential invasion of privacy risks to the client, may also carry with it the assertion by alleged perpetrators of wrongful detention or unreasonable use of force.
If the investigator carries firearms, all federal, state, and local statutes must be followed. Training, supervision, and monitoring are crucial. There should be a written contract with each client explaining services and offering advice. These agreements must be signed by the client, including acknowledgments of services that were recommended and not taken.
Workers compensation exposure can be very high. If most of the work is done in the office and on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma that can be addressed through ergonomically designed workstations. Off-site, the hazards become more serious as detectives are working in unfamiliar environments. Detectives often work alone in dark or high-crime areas.
Check-in procedures, instruction, and training on how to handle emergency situations are all important to review. Any firearm use by employees must be permitted only after there is extensive training and periodic recertification. Without firm procedures regarding firearm ownership, handling, and storage, hazards may increase dramatically. Any specialized work, such as chartering aircraft or watercraft, significantly increases hazards in the workers compensation and liability areas.
Property exposures are generally limited to those of an office, although there may be some vehicle storage. Ignition sources include electrical wiring, heating and air conditioning systems. Hazards arise from the storage of photos and records, which may be in paper or electronic format. Firearms and electronic equipment can be targeted by thieves. Appropriate security controls should be taken including physical barriers to prevent access to the premises after hours and an alarm system that reports directly to a central station or the police department.
Crime exposure may arise from employee dishonesty, including theft of customers' property as detectives often have open access to customers' premises. Hazards increase without proper background checks and monitoring procedures.
Inland marine exposures consist of accounts receivable if the agency offers credit, computers, mobile equipment, and valuable papers and records for customers' and surveillance information. Mobile equipment includes surveillance equipment, radios, base station, walkie-talkies, and other items the investigators carry with them or in their vehicles. These can be damaged by fire, theft, wind, collision, or overturn. All equipment must be secured and locked up when not in use. Hazards may increase in the absence of procedures to ensure proper accounting of all equipment.
Business auto exposures can be extensive during investigations, particularly while traveling to and from information sources. If company vehicles are supplied for use, there should be written procedures in place regarding personal use by employees and their family members. All drivers must be licensed with acceptable MVRs. All vehicles must be well maintained with documentation kept in a central location.
Protecting your private investigation with the right type of insurance is crucial for your overall success. To find out exactly what type of Michigan detective agency insurance you need and how much coverage you should have in place, speak with a reputable insurance broker who knows your business.
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.
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:
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:
Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.
Let's face reality. People today are claims conscious, resulting in a significant share of malpractice lawsuits against professionals.
Liability resulting from the rendering of or the failure to render professional services is excluded in most liability coverage forms. This means that a policy covering a account's or lawyers' office will cover liability arising out of the maintenance or use of the premises, but specifically exclude liability arising out of the rendering of a professional service or the omission of such a service.
In addition to the professions in which actual physical or mental injury may be caused to clients, certain other professions are exposed to claims for malpractice.
Claims may be brought against lawyers, accountants, architects, and similar professional persons for errors or omissions in their professional capacity. Errors & Omissions insurance pays damages that might be awarded to a plaintiff alleging professional negligence.
Professional liability policies are made available to such risks, and these policies provide essentially the same protection as is afforded under the physicians, surgeons or dentists professional liability policy.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
Request a free Michigan Detective Agency 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.