Michigan has a lot to offer IT business owners, no matter where on the hand (or UP) you're from. And while the coasts get a lot of attention for their hot startup environments, tech businesses in the Midwest are starting to stand up and be counted. In our Best Places to Live for Tech Entrepreneurs report, in fact, Detroit earned a nod for being a great place for folks who love a comeback story (and for entrepreneurs on a budget). And speaking of budgets, here are some strategies for keeping your costs and risk exposure down.
- It pays to comparison shop for the best insurance coverage and prices, but busy IT business owners rarely can find the time. Let us do the shopping for you. Just complete our single online application, and we'll get back to you with quotes from multiple top-rated carriers–fast.
- If your client requires higher limits of general liability coverage than your policy allows, don't worry. It's easy and affordable to add coverage with an umbrella policy, also called excess liability insurance.
- Want to keep your workers' compensation premiums low? Implement a formal safety program to reduce workplace accidents. Fewer accidents mean fewer claims, which helps to keep your premiums down.
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Michigan is no longer only known for its role in manufacturing the classic American automobile, it's also quickly gaining renown as a great state to operate a tech start-up. And for good reason – Michigan is the backbone of America. With so many hardworking, industrious people helping to transform the economic landscape, there are plenty of clients with whom your IT firm can establish solid relationships. And as your IT business gains steam, it's important to protect your livelihood with the proper insurance policies.
Top Insurance Policies for IT Businesses in Detroit, Ann Arbor, Flint, and Other Cities in Michigan
Whether your IT business is based out of Marquette, Ann Arbor, or Detroit, you can bet on tough weather conditions year round, and plenty to contend with in the winter months especially. Because so much is outside your control, it's best to consider your insurance options, so you can manage your finances in the face of the unknown. From Property Insurance to Professional Liability, you can rest easy knowing you won't have to pay out of pocket for repairs, should you be forced to close down due to a nasty storm, or relocate on account of theft or fire damage.
Here at TechInsurance we provide multiple quotes within 24 hours from top-rated insurance providers. And all you have to do is give us a call or complete an online application, and we'll send coverage quotes to your email inbox.
Errors and Omissions Insurance for IT Businesses in Michigan
One of the most important insurance packages for IT business owners to carry is Errors and Omissions Insurance. This policy protects you from having to dip into your personal savings to combat litigation from clients claiming you failed to deliver contracted services. It also protects against any oversights or errors caused by you or an employee.
Should you be unlucky enough to find yourself in a situation where your IT business is facing a Errors and Omissions lawsuit, without insurance in place you'll have to pay for the following expenses out of pocket...
- Lawyer's fees.
- Court fees.
- Docket fees.
- Potential judgments and settlements.
Though rare, E&O lawsuits can be devastating. Even so much as a single suit during the lifetime of your IT business can result in bankruptcy. To find out more about how you can stay protected no matter what happens, contact a TechInsurance agent today.
Business Owner's Policies for IT Business in Michigan
IT businesses are generally considered low-risk enough to qualify for a Business Owner's Policy (or BOP). This policy combines General Liability Insurance and Property Insurance into a single affordable policy. With a BOP, you're protected from third-party lawsuits (from the General Liability portion) and certain events that damage your business property (from the Property portion).
The following calamities are covered by a BOP's Property Insurance..
- Certain storms.
- Equipment damage.
The GL portion of the BOP protects you from lawsuits filed against your IT business by non-employees. This includes allegations that you or an employee caused damage to a client's property or were responsible for bodily harm to a client's employee. In the event they choose to sue you, the BOP offers funds to defend your business.
A BOP can also protect your income from taking a hit should you need to close down for repairs due to property damage. This portion of the policy is known as Business Interruption Insurance. It provides funds for expenses that don't stop accruing – like taxes, business loans, and employee wages.
Workers' Compensation Insurance for IT Businesses in Michigan
Michigan has strict Workers' Compensation laws. That means that if you have employees and you're currently operating without Workers' Compensation Insurance, you could be hit with hefty fines. However, it's important to note that Workers' Compensation Insurance is beneficial for both you and your employees, regardless of state requirements.
With Workers' Compensation Insurance in place, you don't have to worry about paying for the following expenses should an employ become sick or injured on the clock...
- Medical bills associated with the accident.
- Their wages while they recover.
- Overtime pay / additional pay to other employees.
- Fines for not complying with state laws.
Just because your workplace environment isn't statistically dangerous doesn't mean you can ignore Workers' Comp mandates. Common workplace injuries such as repetitive motion injuries, slips, trips, falls, and carpal tunnel syndrome can strike your employees at any moment.
To find out how you can comply with state laws, contact a TechInsurance agent at your earliest convenience.
Employment Practices Liability Insurance for IT Businesses in Michigan
Employment Practices Liability Insurance Insurance ensures that your IT business won't be financially affected by employee claims that they were wrongfully terminated, sexually harassed, or discriminated against based on their race, gender, religion, or sexual orientation. This means that should you end up taking on a lawsuit alleging employment practice violations, you won't have to worry about dipping into your profit margin to combat litigation.
The following suits are covered by Employment Practices Liability Insurance (EPLI)...
- Breach of contract.
- Wrongful management of employee benefits.
- Libel or slander.
- Invasion of privacy.
- Negligent hiring practices.
STATE INSURANCE LINKS
- Top 10 Workers' Comp Insurance Questions
What is workers' compensation insurance? Workers' compensation insurance covers your employees' medical and disability expenses related to work-related illness and on-the-job injuries.
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