Business Insurance: Which Type Do You Need?

michigan small business insurance

Michigan small business owners face various risks. Insuring your business protects you from unexpected expenses, but selecting the right coverage can be challenging. So, what kind of business insurance do you need, and what does it cover? Here are a few helpful tips for choosing the right policy for your small business.

The Importance of Business Insurance

As a business owner, you don’t have time for liability worries. Business insurance refers broadly to insurance coverages intended for businesses rather than individuals. Business insurance protects financial assets and can help pay the cost of lawsuits, property damage, theft, vandalism, loss of income, employee injuries, and illnesses. Therefore, it is essential for small business owners to carefully consider and evaluate their insurance needs because they may have more personal financial exposure in the event of a loss.

Business Insurance Types:

  • Property Insurance covers equipment, signage, inventory, and furniture in the event of a fire, storm, or theft. However, it doesn’t cover mass-destruction events like floods and earthquakes. If your area is at risk for these issues, you’ll need a separate policy. According to the  Federal Emergency Management Agency, about 40% to 60% of small businesses never reopen after a natural disaster.
  • Liability Coverage can help protect your business against claims for bodily injury, property damage, advertising injury, errors, or omissions. In addition, without this coverage, you may be responsible for paying out of pocket for legal costs, such as attorney fees and settlement amounts.
  • Workers Compensation gives your employees benefits to help recover from a work-related injury or illness. It can also benefit your employee’s families if they lose their lives in a workplace accident. Different factors can affect your workers’ compensation cost, such as job risk, claims history, payroll size.
  • Commercial Automobile helps protect you and your employees on the road if you drive company-owned vehicles for business. In addition, it can help cover property damage and bodily injury claims from an accident your business causes.
  • Commercial Umbrella extends the coverage limits for some of your liability policies. So, if a claim exceeds the limits on your policy, your umbrella insurance can help cover the difference.
  • Data Breach or Cyber Insurance helps your business respond to a data breach if personally, identifiable information gets lost or stolen. In addition, many policies will include extortion coverage, business income protection, systems failure, all caused by a breach.


business owners insurance


Business insurance: How Much Should It Cost?

It’s comforting to know that Mason-McBride is an Independent Agency, which means we can shop and compare policies from multiple premium carriers to find you the right policy. It is important to remember that coverage and pricing will vary based on a number of risk factors and that no two businesses are the same.

Variables that can affect premiums include:

  • Size of business
  • Type of business and risk exposure
  • Location of business
  • Property and assets
  • Previous claims history


In summary, understanding your options is essential. No two businesses are the same, so it’s necessary to speak to a qualified Business Insurance professional who can sift through your various options. Fortunately, Mason-McBride has access to many insurance types to protect you against risk.

Does Your Business Need Coverage?

At Mason-McBride, our business insurance experts will identify your business’ risks and create customized and appropriate coverage to reduce your exposure. If you have any questions about Commercial Insurance or review coverage options, please contact us.

For helpful tips on other popular topics, check out our articles on Commercial Crime Insurance, Ransomware Developments, and Cyber Insurance. As always, we are here to help you, your employees, and your business with all your insurance needs – from commercial insurance to group benefits to personal insurance. Thank you for allowing Mason-McBride to serve you!

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