Why do small businesses need commercial insurance?

According to the U.S. Small Business Association, small businesses account for 47.9% of employment in Michigan, so their health is vital to the American economy. You can ensure your business’s health by having insurance to cover your legal and contractual obligations at a risk level you find comfortable. Our Premier Insurance Agency, serving Detroit, MI, will help you understand your commercial insurance options and structure coverage that meets your needs.

Commercial Insurance Overview

Small businesses have many of the same insurance needs as large companies and often need more protection because they lack a larger organization to fall back on when difficulties arise. Unforeseen events can threaten the life of a small business, so you need to carry the right combination of insurance based on your industry, number of employees, vehicle use, and other factors.

Many small businesses simplify and reduce the cost of coverage by bundling business property and liability insurance into a business owner’s policy (BOP). If you have employees, you will also need workers’ compensation insurance, and many small businesses require product or service liability insurance.

A common mistake among small business owners is believing their personal auto insurance covers the business use of a private vehicle or that their home insurance covers office equipment, tools, supplies, and other business assets kept at home. Personal policies do not cover these business activities or assets, so you must protect your business and livelihood with the appropriate commercial insurance to cover business activities and assets. 

Working with Premier Insurance Agency 

Premier Insurance Agency, serving the small business community in Detroit, MI, will develop an insurance plan to protect your business against unforeseen events. Give us a call today to discuss your commercial insurance options.