What is General Liability insurance coverage?
Michigan general liability insurance, also called commercial general liability (CGL), can help cover costs related to common risks faced by many businesses, such as:
- Slip-and-fall injuries
- Other injuries related to your business, excluding employees
- Damage to someone else’s property
- Accusations of libel, slander or copyright infringement
General liability insurance can help protect businesses financially in several different situations. For example:
- A Grand Rapids carpet cleaner accidentally dislodges a corner of the carpet while cleaning, causing their client to trip. General liability insurance could help cover the emergency medical treatment they want to make sure they aren’t seriously hurt.
- A Lansing snow plower causes damage to a client’s driveway while removing snow. General liability could help cover the costs of fixing the damage.
Michigan general liability insurance can also help cover situations where you need to defend yourself against an accusation of copyright infringement, slander or libel.
Is General Liability insurance required in Michigan?
Michigan businesses are not required to carry general liability insurance.
Although the state does not impose mandates for business liability insurance, Michigan cities and counties may have their own requirements. Check with your city clerk’s office to confirm what insurance you need to operate legally in your area.
Even without being legally required to carry commercial general liability insurance, Michigan entrepreneurs can still benefit from this coverage. Many small businesses voluntarily buy coverage to:
Gain financial protection
With general liability insurance coverage, Michigan businesses may be better protected financially when a covered incident occurs. Additionally, some lenders and banks require proof of this type of Michigan business insurance.
Get more clients
Potential clients may require proof of coverage before agreeing to work with you.
An insurance requirement is sometimes written into contacts. You could risk losing out on business if you don’t carry Michigan liability insurance.
Sign a commercial rental agreement
Some commercial property leases require proof of general liability insurance. Michigan property managers may refuse to rent out space to you if you don’t have this coverage.
Secure licenses and permits
To secure a business permit or professional license, you may need to have general liability insurance.
For example, vendors in the city of Battle Creek, Michigan must carry general liability insurance in order to obtain a business license.1
What types of businesses might need General Liability insurance in Michigan?
General liability insurance covers common risks in almost every industry.
Even if you run a business with a lower level of risk, general liability insurance can still provide important protections.
It’s not uncommon for accidental injuries or property damage to happen in an office environment or small retail space. If a server at your Ann Arbor restaurant spills soup on a customer’s designer jacket, for example, Michigan general liability insurance could help cover the cost to repair or replace it.
How much does General Liability insurance cost in Michigan?
The insurance premiums for this type of Michigan business insurance vary depending on several factors, including:
- What type of work you do
- How many employees you have
- Where your business is located
- Any past insurance claims
- The policy limits you select
Michigan business owners can get an affordable, customized policy from NEXT. Our general liability premiums are priced at $45 or less per month for 50% of our U.S. customers.**
Learn more about general liability insurance costs.
How NEXT Insurance helps Michigan businesses
NEXT provides Michigan general liability insurance policies designed for small businesses and self-employed workers.
It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.
Start an instant quote online today.
Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.
