Business Owner's Insurance
Pinellas Park

In 2018, there were an estimated 870,301 small businesses in Michigan, equaling more than 99% of all businesses statewide. Small businesses employ about 49% of the Great Lakes State’s workforce, and firms with less than 100 employees comprised the highest share of the small business workforce. See how a BOP policy can help protect your business.

What’s a business owners insurance policy?

When starting a business, you probably already have clear goals in mind. Your company needs to grow and succeed, but you have to take care of your physical assets, clients and employees to help it do so. That’s why every business needs various types of commercial insurance. The appropriate policies can be key sources of support to companies of all shapes and sizes should difficult problems arise.

Qualifying small businesses can get multiple policies in one package if they choose to invest in a BOP. By going this route, you’ll be able to get covered without hassle, and can easily turn to your policy if various accidents occur in your line of work.

What does a BOP cover in Michigan?

A BOP might be an excellent insurance solutions for your small business because it allows you to get several critical policies within one place. Most offer:

• Property & Contents Insurance: This coverage will pay for damage to the business property and contents held within the business. For example, if a fire occurs and guts the business, this policy can help you repair the structure and replace equipment, furnishings and stock.
• General Liability Insurance: In case you accidentally cause harm to a third party, like one of your customers, then commercial general liability coverage can help you pay for that person’s losses. Most policies can include property damage, bodily injury, personal injury, products/completed operations, accidental medical payments, and legal assistance coverage.
• Business Interruption Insurance: Following a damaging accident, you might have to temporarily close. You might not only lose income during this time, but you might also face ongoing costs, such as salaries or mortgage payments. This coverage can help you cover such costs.

You can often add extra types of coverage to your BOP, as well. Cyber liability insurance, EPLI coverage, professional liability (E&O) coverage or D&O coverage might all be coverage you need. Let your agent help you decide the right way to obtain this additional coverage.

What’s the advantage of a business owners policy?

The good thing about BOPs is that they provide many types of security without causing you to face face a lot of hassle getting covered or making a claim. The different parts of your policy can work together cohesively to ensure you get comprehensive protection, but you can also adjust different limits to enhance coverage for your own operational needs. Therefore, it’s usually a lot easier to manage claims.

Who needs a BOP?

Because BOPs are geared towards small businesses, factors like your size, income and industry might disqualify you from eligibility. You do have other options available, however. Commercial Package Policies, also called CPPs, are essentially a larger version of a BOP that you can better adjust to meet your operational needs.

What’s the cost of a BOP?

The cost of your BOP is based on the specific characteristics of your business and chosen coverage, though the nationwide average cost is about $1,000/year. Your friendly, highly-trained agent is happy to help you develop a policy that offers a favorable premium with discount incentives attached.

What do BOPs not cover?

Always remember that BOPs don’t include all the coverage you might need. You usually need separate policies, including:

• Workers’ compensation insurance: Coverage repays your employees in case they get sick or injured on the job. Most Michigan businesses must have this coverage.
• Commercial auto insurance: With this coverage, you can insure company-owned vehicles or personal vehicles that employees use to drive on business.
• Inland marine insurance: Coverage insures certain company materials and cargo when you transport them off your business’s premises.

Superior Policy Services When You Need Them

Here at First Independent Agency in Metro Detroit we know that you want to get the right BOP, but we also know that the perfect coverage might not seem obvious. Let us be your guides in getting covered. We can help any Michigan business owner find coverage that offers adequate coverage at all times.

Call us at (888) 513-8784 or request your online quote today! We’re ready to help you protect your business in the best possible ways.

Frequently Asked Questions

• What is food manufacturing insurance?

  Food manufacturing insurance covers a wide range of policies available to help protect against the risks faced by food and beverage manufacturers and bakeries. There isn't a single bakery insurance policy that covers your entire range of risks instead, policies are tailored to fit the specific needs of your company! Your business is unique, which means your insurance needs to be unique as well. There are coverage options for every type of food manufacturer or processor you can imagine. Some examples include:

  • Commercial Bakeries
  • Dairy Processors
  • Grain Millers
  • Meat Processors
  • Nut Hullers
  • Pasta Manufacturers
  • Poultry Processors
  • Frozen Food Manufacturers
  • Breweries
  • Confectionaries
• What is farm and ranch liability coverage? 

  Farm liability coverage is different from general liability coverage, even though they sound very similar. General liability is just that  general. Farm liability can be broken down further into more specific coverages. Here are a few types of specific liability policies available for different agricultural industries. 

  • Farmers Market/Roadside Stand
  • Agritourism/Agritainment
  • Equine Operations 
  • Farm & Agricultural Pollution 
  • Seedmen's Error & Omissions
  • Liquor Liability
• Who needs family fun center insurance?

  Every family entertainment center can benefit from a customized  insurance policy. If you're wondering whether your business qualifies as a family fun center, the following definition may help. Family fun centers are businesses with games, devices, and attractions designed and manufactured only for the bona fide amusement purposes of the general public. Some examples of businesses and operations covered by family fun center insurance include:

  • Trampoline Parks
  • Obstacle Courses
  • Bowling Alleys
  • Ice Skating Rinks
  • Roller Skating Rinks
  • Miniature Golf
  • Batting Cages
  • Go-Kart Facilities
  • Outdoor Driving Ranges
  • Ride Simulators
  • Escape Rooms
  • Indoor Laser Tag
  • Arcades
• What does professional liability insurance look like?

  Not every professional liability insurance policy looks the same. Claims-made and occurrence policies are the two most common coverage options. While both give you a second line of defense, they have fundamental differences.

  1. Claims-made policies only cover a claim if both the service or advice was provided and the lawsuit was filed while the policy was active.
  2. Occurrence policies will cover claims that take place during the coverage period, even if the treatment did not occur during the active policy.
• What does family entertainment center insurance cover?

  Family entertainment center insurance policies generally cover the same things.

  • General Liability
  • Commercial Property
  • Commercial Auto
  • Workers Compensation
• What does dude ranch insurance cover?

  Guest ranch insurance policies generally cover the same things.

  • General Liability
  • Commercial Property
  • Mobile Equipment Coverage
  • Commercial Auto
  • Crime Coverage
  • Workers Compensation
  • Abuse and Molestation
• What is captive insurance?

  A captive insurer offers insurance policies created explicitly for a specific industry by a specific industry. Captive insurance is unique because the companies are entirely owned and operated by the insureds.

  Captive insurance agencies are organized and used by insureds when the standard products offered by traditional insurance companies don't meet the risk financing needs of the insureds. While it can be a good alternative insurance option, there are a couple of things to keep in mind.

  1. Those who participate in captive insurance put their own capital at risk
  2. Captive insurance works outside of the commercial insurance marketplace

  Advantages of captive insurance

  • Coverage is often tailored to the exact needs of an industry.
  • Well-established captive insurers have a greater ability to retain risk and protect against rapid fluctuations occurring in the commercial market.
  • Participants have ownership of the company and have a say in business services and decisions.
  • You don't have to pay an overhead covering a commercial insurer's acquisition costs, admin, overhead, and profit.
  • Improve cash flow through reduced insurance costs, insulation from market fluctuations, and more time available for you to spend focused on your business.
  • Insurance programs and policies can be customizable.
• What does a BOP cover?

  A BOP might be an excellent insurance solutions for your small business because it allows you to get several critical policies within one place. Most offer:

  • Property & Contents Insurance 
  • General Liability Insurance
  • Business Interruption Insurance
  • Cyber liability insurance
  • EPLI coverage
  • professional liability (E&O) coverage
  • D&O coverage

  Let your agent help you decide the right way to obtain this additional coverage.

• What insurance do bakeries and food processors need?

  The exact coverage you decide on will vary based on your business's needs and risks. However, a few types of food manufacturing and bakery insurance coverage we recommend including the following:

  • General Liability
  • Commercial Property 
  • Bakery Manufacturing Insurance  
  • Bakery Equipment
  • Equipment Breakdown
  • Spoilage Coverage
  • Workers Compensation
  • Commercial Auto
• How much will haunted house insurance cost?

  The best way to answer this question is, It depends. Your premium will depend on how much risk you're willing to carry, combined with factors that determine how much risk your haunted house faces. Some of these risk-determining factors include:

  • How many attendees your haunted house has per day.
  • Estimated gross sales receipts.
  • Payroll.
  • Whether your haunted attraction is indoors, outdoors, or a combination of the two.
  • Staff and volunteers trained in first aid.
  • Location of the closest medical facility.
  • Number and type of special effects that are used throughout the haunt.
• What does medical liability insurance look like?

  Claims-made and occurrence policies are the two most common coverage options. While both give you a second line of defense, they have key differences.

  Claims-made policies only cover a claim if both the treatment occurred and the lawsuit was filed while the policy was active.

  Occurrence policies will cover claims that take place during the coverage period, even if the treatment did not occur during the active policy.

• What does haunted house insurance cover?

  You can buy many types of haunt insurance, but what's included in your policy depends on what you need. Not every haunted house is the same, and your insurance is the same way.

  • General Liability
  • Commercial Property
  • Inland Marine
  • Commercial Auto
  • Workers Compensation
• How much does hospitality insurance cost?

  Unfortunately, there's no single estimate. You run a unique business with lots of different factors affecting your premiums. These factors include:

  • Your business's location
  • Additional services and activities offered
  • Square footage of your hospitality business
  • Presence of a pool
  • The type of food and drink you serve
  • How long your business has existed
  • Your hours of operation
  • The age of your building
  • Number of employees
  • Type of fire and security systems
• Is medical malpractice insurance required near you?

  Medical professional liability insurance requirements vary from state to state. Malpractice insurance is required in these states:

  • Colorado
  • Connecticut
  • Kansas
  • Massachusetts
  • New Jersey
  • Rhode Island
  • Wisconsin

  The following states have claim-assistance programs requiring you to have a minimum amount of malpractice insurance coverage to participate:

  • Indiana
  • Louisiana
  • Nebraska
  • New Mexico
  • New York
  • Pennsylvania
  • Wyoming
• What manufacturing insurance coverage do I need?

  The exact coverage you choose will vary because your company and its risks are unique. However, there are some core policies we strongly recommend for all manufacturing company owners.

  • Workers Compensation
  • Commercial Auto
  • Professional Liability
  • Business Owners Policy (BOP)

  The coverages listed above don’t cover everything. Depending on your manufacturing company, you may also benefit from the following policies:

  • Earthquake
  • Umbrella
  • Equipment Breakdown
  • Manufacturers Errors and Omissions
  • Product Recall and Replacement
• Who needs manufacturing insurance?

  Anybody with a manufacturing company. Consider doing a brief self-evaluation by asking yourself the following questions:

  • Does your company have the finances to survive a mass product recall?
  • Can your manufacturing facility afford excess downtime if a natural disaster happens?
  • Will you be able to repair or replace heavy machinery if it breaks down?

  If your answer to any of these questions is yes, it is strongly recommended that you protect yourself and your business with manufacturing insurance.

• Who needs malpractice insurance?

  Medical malpractice insurance is essential for anyone who provides healthcare services. You may be covered under your employer. However, this coverage may have limitations, so make sure to find out what these limitations are from your local ARCW Insurance insurance agent.

  Remember, it's not just physicians and surgeons who need medical liability insurance. Other medical professionals can benefit from coverage, including:

  • Social workers
  • Therapists
  • Counselors
  • Physical therapists
  • Pharmacists
  • Nurses
  • Dentists
  • Radiologists
• What kind of insurance does my property management company need?

  Your policy will vary depending on the services you provide and whether you're purchasing insurance for yourself or your business. Potential coverages you should consider may include:

  • Professional Liability/Errors & Omissions
  • Cyber Liability
  • Commercial Liability 
  • Business Auto
  • Hired & Non-Owned Auto
  • Workers Compensation
• Do I need warehouse insurance? 

  Whether you need warehouse insurance ultimately depends on your business's ability to recover from financial loss. You can do a fast self-diagnostic by asking yourself the following questions: 

  • Can you afford to replace your clients’ lost property? 
  • If a client or prospect is touring your facility and is injured, can you afford their medical bills? 
  • Do you know the exact value of the items you’re storing? 

  If your answer to any of the above is no, then you may consider purchasing insurance for your warehouse. 

• Who Needs Workers Compensation Insurance? 

  Every business does. Many business owners feel that if their employees are independent contractors because they get 1099's instead of W-2's. This does NOT matter.

  What matters is whether they do this type of work for anyone else (like a contractor who has their own insurance, vehicle, and tools), and the issue of control where the employer tells them how and when to do their job.