Business Insurance protection is written among many policies. You can purchase a BOP (Business Owners Policy) for many small and mid-sized business exposures that covers your property and general liability all in one package form. Most larger businesses that have many employees or higher income receipts or exposure, will need to purchase a package policy that is more customized with endorsement to their particular business and the claim exposures it faces.
Business policies most often include coverage for your building, business personal property within the building, business interruption which covers the loss of income when a covered claim occurs, and extra expense of operating that business out of temporary location while yours is being repaired or rebuilt.
If you have employees that meet the Michigan State Workers Compensation law requirement, that is a separate policy that is based on the class of work the employee is doing and the amount of annual payroll.
If your company owns vehicles or uses your personal vehicle exclusively, you should have a separate Business Auto policy to cover the business entity for any lawsuits the business may be legally liable for. The Michigan personal auto policy was never designed or intended to cover business exposures or entities such as your LLC or Corporation.
Professional Liability Insurance is often EXCLUDED under your General Liability commercial policy. Professionals are expected to have extensive knowledge or training in their field of expertise and can be held liable for providing or not providing those services to a client. A separate policy is usually purchased or if a limited exposure is present, some companies will ‘endorse’ the General Liability policy to add this additional protection.
The Michigan personal auto insurance policy was never intended to be used for commercial or business usage vehicles. It does not have the scope of proper coverage to protect an employer, their business entity or their employees while using vehicles during the course of business.
Any vehicles that are titled to a business; whether as a DBA, corporation, or LLC, should be discussed with your insurance agent. Auto insurance does not respond to a liability claim against you unless the ‘named insured’ is sued. If the vehicle is titled to an ‘entity’ and is insured on a personal auto policy, any claims made against the entity will not be covered.
Likewise, any vehicle used the majority of the time for business including delivery, hauling, transporting of merchandise or passengers, construction, or landscaping, should all be insured on a commercial auto policy to avoid the built-in exclusions in personal auto policies that address these types of usage.
The Michigan Workers Compensation Act was first adopted in 1912 to protect employees injured on the job. All non-exempt Michigan employers must carry workers’ compensation insurance that provides medical, wage replacement, and rehabilitation benefits to employees who are injured or become ill while in the course of their employment. These benefits are paid regardless of fault. The Workers Compensation Act also protects the employer as their covered employees give up the right to file a lawsuit against the employer due to their injuries.
All employers with three or more employees at any time or any employer that has one employee working 35 hours or more per week, are required to purchase Michigan Workers Compensation. There are exceptions to this act when some farm and independent contractors are hired, but it’s best to check with the State as well as your local insurance agent to determine when coverage is required by law.
All work-related injuries are covered, however the normal commute to and from work may not be covered. This will depend on the circumstance surrounding the injury/accident. Any injury or illness that is the result of intentional or willful misconduct will most likely not be covered.