No matter the nature of your business, managing risk is part of daily operations. Established companies across Michigan, including professional services, staffing agencies, contractors, and technology firms, use liability insurance to help address exposure to third-party claims and contractual requirements.
A general liability policy is a core component of a broader business insurance program and can help address a range of common risks.
General Liability Coverage Examples
Thef ollowing scenarios are typically included under general liability, as noted by TrustedChoice.com:
Bodily injury claims
If a third party, such as a client, vendor, or visitor, is injured on your premises and alleges your business was responsible, general liability insurance may respond to associated legal costs.
Property damage claims
If someone else’s property is damaged due to your business operations, general liability coverage may respond to legal expenses.
Advertising injury claims
If your advertising materials cause alleged harm to a third party, general liability coverage can address the associated legal costs.
Medical payments
General liability policies may also include limited medical payments coverage, which can assist with medical costs for third-party injuries, regardless of fault.
Role of Liability Insurance in Business Risk Management
Operating without liability insurance exposes a business to unnecessary financial risk. Claims, both legitimate and frivolous, require time and resources to address. Having coverage in place can help your organization manage the cost of defending certain claims and maintain business continuity.
This is especially relevant for companies with contract-based work, such as staffing and recruiting agencies, where client agreements often require general liability, professional liability, or additional insured endorsements.
Factors Affecting Liability Insurance Costs
Liability insurance pricing varies based on several factors, including:
- Industry and operations
- Geographic location
- Number of employees
- Claims history
- Annual revenue
- Additional coverages selected
Michigan companies with higher exposure, such as staffing firms with large volumes of placements or businesses with public-facing locations, may see different pricing than office-based operations.
Beyond General Liability: Additional Policies to Consider
General liability is only one component of a comprehensive business insurance program. Depending on your work, additional policies may be relevant:
- Commercial Umbrella Insurance: Extends liability limits for added protection.
- Professional Liability Insurance: Helps address claims related to alleged negligence in professional services.
- Workers Compensation Insurance: Provides statutory benefits for work-related injuries.
- Cyber Liability Coverage: Helps protect business assets and support recovery after covered events.
- Business Property Insurance: Helps protect business assets and support recovery after covered events.
For staffing agencies, placements, contracts, and client requirements often make professional liability and workers’ compensation essential components of their insurance program.
Benefits of Working With an Independent Agent
Independent agents represent multiple insurance companies and can provide access to various options. They can help review coverage, compare solutions, and assist businesses in building an insurance program aligned with their operations.
The Takeaway
Liability insurance plays a meaningful role in helping Michigan businesses manage risk. Understanding coverage basics and how they relate to your industry, contracts, and operational needs supports sound risk management.
Working with an independent agent can be a helpful step in reviewing options and assembling the coverages appropriate for your organization.
Take Action to Safeguard Your Business
Find out how Mason-McBride can help protect your business and request a proposal.
For helpful tips on other popular topics, check out articles on:
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- Business Owners’ Guide to Cyber Insurance
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Article By Jamie Parry
