In Michigan, small business owners need adequate insurance coverage to protect their company, and the insurance policies present them with protection against liabilities that could shut down their company completely. The insurance requirements are defined by how the owner operates the business and whether or not they have workers. A local insurance agency provides answers to frequently asked questions about Small Business Insurance in Monroe County MI.
What Properties are Covered Under the Policies?
The primary property used for the business is covered under the business property insurance policy, and any commercial properties that are used for the business are covered as well. This may include exterior fixtures that are connected to the building directly and can include garages and storage units.
What Type of Liabilities are Covered Under Business Insurance?
Companies need access to general and global liability insurance coverage, and they can choose the best coverage level based on the level of protection needed. A small business may only need general liability initially, but they may need to acquire global coverage as the company expands.
Do Small Business Owners Need Worker’s Compensation Insurance?
If the owner hires more than one worker, that owner will need to purchase worker’s compensation insurance. However, if workers are independent contractors, those contractors are required to get their own coverage, and the company isn’t liable for any injuries sustained by these contractors based on the terms of their contracts.
Is the Business Inventory Covered Under the Policies?
Yes. In most cases, the business inventory is covered by the property insurance. However, if the inventory has a value that is higher than the limits of the policy, the owner needs a rider. A rider provides a value based on an appraisal acquired by the insurer.
In Michigan, small business owners purchase a variety of insurance policies to protect their investments, and they need to review the terms of each of these policies to determine if the insurance provides the right coverage level for the business. Company owners who need to review Small Business Insurance in Monroe County MI can contact an insurance agent to schedule an appointment right now.
