What Is The BEST General Liability Insurance For Contractors In Michigan?

What Is The BEST General Liability Insurance For Contractors In Michigan?

When you’re a contractor in Michigan—whether you’re a plumber, electrician, HVAC contractor, roofing company, or general contractor—having the right general liability insurance is a must. It protects your business from lawsuits, accidents, and costly claims that could otherwise derail your operations.

But what exactly makes one policy “the best” for contractors in Michigan? Let’s break it down.

Work With a Strong Insurance Company

The first thing to check is the financial strength of your insurance carrier. Look for companies with at least an “A” rating from AM Best or other rating agencies. A strong rating means the company has the financial stability to pay claims when you need them most.

Occurrence vs. Claims-Made Coverage

Most contractors should look for an occurrence-based policy. That means if a claim comes up years later for work you did while the policy was active, you’re still protected.

By contrast, a claims-made policy only covers you while it’s active—leaving potential gaps if you switch carriers. Occurrence-based is usually the better starting point for contractors.

Accurate Class Codes for Your Work

Insurance companies classify your business using class codes based on the type of work you perform. If you’re a plumbing contractor, your policy must reflect plumbing codes—not roofing or electrical. Having the wrong codes can cause big problems at audit time or lead to denied claims. Always verify your codes are correct.

Subcontractor Coverage

If you work with subcontractors, make sure your policy clearly addresses them. You’ll also want to require subs to carry their own insurance and sign risk transfer agreements. Otherwise, you could be stuck with liability for their mistakes.

Standard Coverage Limits & Umbrella Options

Most general liability policies start with $1 million per occurrence and $2 million aggregate. For larger projects or higher-risk work, an umbrella policy can provide extra protection, stacking on top of your general liability, commercial auto, and workers’ comp limits.

Completed Operations Coverage

This coverage is critical for contractors. It protects you from claims that arise after the work is finished—like a pipe you installed that leaks a year later. Some policies limit or exclude completed operations, so check carefully before you buy.

No One-Size-Fits-All Answer

Not all insurance companies are a good fit for every contractor. Some carriers specialize in small trade contractors, while others work better for mid-size or general contractors handling large projects. Pricing, limits, and endorsements can all vary. That’s why working with a Michigan-based insurance advisor who knows the contractor market can save you time and money while ensuring you’re properly protected.

Final Thoughts

The best general liability insurance for contractors in Michigan is one that:

• Comes from a financially strong carrier
• Is occurrence-based (not claims-made)
• Uses accurate class codes for your trade
• Properly addresses subcontractor exposures
• Offers strong coverage limits, including completed operations

At the end of the day, it’s not just about the cheapest policy—it’s about the right protection for your business.