Michigan Contractor Insurance

In Michigan, there are 856,682 small businesses, and 91,252 are in the construction industry. The real gross state product grew by just 2.0 percent in 2013, which is a little slower than the USA’s gross domestic product’s growth of 2.2 percent. (Source: BEA). That being said, the unemployment rate in Michigan is looking much better than before, since it went from 8.6 percent to 7.1 percent. (Source: BLS). If you want even more encouraging news as a business owner in this state, check out what Michigan contractor insurance covers.

Michigan Contractors Need The Following Insurance

Coverage for Third Party (GL): There are numerous ways for people to get injured at a construction site, especially when they are not used to being at one. If someone ever visits your site and is injured in any way, you will be glad to have general liability within your Michigan contractor insurance policy. Whether a visitor breaks a bone or incurs any other injury, general liability will pay the bills associated with the ambulance ride, hospital visit, and any fees for surgery or even physical therapy. It will also pay to correct any property damage, such as when visitors drive over some equipment in your parking lot and damage their car.

Tools & Equipment Coverage (BOP): Your Michigan contractor insurance needs to incorporate tools & equipment coverage in order to protect any items you use for the job, whether you rent or own them. If your tools or equipment are ever stolen, lost, or damaged, and you cannot afford to replace them right away, you might end up having to temporarily close your construction business. This can result in lost jobs, cancelled projects, and even bankruptcy. That’s why it’s so important to have a Michigan contractor insurance policy with tools & equipment coverage.

Employee Coverage (WC): In 2012, small businesses in Michigan employed more than half of the state’s workforce in the private sector. This is equal to 1.8 million people. (Source: SUSB). In particular, 17,906 of the construction firms in this state employ 1 to 499 people. If this sounds like your construction business, you need to add employee coverage or workers compensation to your Michigan contractor insurance policy. This way, your employees’ medical bills will be paid for and lost wages will be covered if they are ever hurt at work.

Business Vehicle Insurance: If you drive around a lot to work on various construction sites, it’s important to include business vehicle coverage with your Michigan contractor insurance. This will ensure that your insurance policy will pay for any car accidents you cause while you are driving for work, because your personal vehicle insurance will not pay for those damages.

Bond: When you get a surety bond as part of your Michigan contractor insurance, your construction services are guaranteed. What this means is that your policy will pay for any fines you are assessed if you do not meet a contract’s terms. In this way, a surety bond can protect both you and your clients.