General Liability Insurance For Contractors In Michigan: What You Need To Know

General Liability Insurance For Contractors In Michigan: What You Need To Know

Why General Liability Insurance Matters for Contractors

If you’re a contractor in Michigan, having general liability insurance isn’t just a formality—it’s a critical layer of protection for your business. General liability coverage helps protect you when someone gets injured or their property is damaged because of your work.

Whether you run a small crew with just a couple of trucks or manage a larger operation, general liability insurance shields you from potentially devastating financial losses if an accident happens.

Real-World Examples of Coverage

General liability insurance is designed to step in when things don’t go as planned. For example:

• If you’re on a job site and accidentally damage a client’s property, your policy can help cover repair or replacement costs.
• If someone trips over your equipment and is injured, your policy may help with medical expenses and legal defense if you’re sued.

Without this coverage, you could be left paying these expenses out of pocket—which could seriously impact your business.

What to Look for in a Policy

When shopping for general liability insurance as a contractor in Michigan, here are the key things to keep in mind:

• Coverage Limits – Most policies start at $1 million per occurrence with a $2 million aggregate limit. Some carriers may offer higher options, like $2 million/$4 million. Choose limits that make sense for the type and size of projects you handle.
• Umbrella or Excess Liability – If you take on larger jobs or contracts, you may be required to carry higher coverage amounts. In those cases, an umbrella or excess liability policy can provide the additional protection you need without overpaying for a higher base policy.
• Products and Completed Operations – It’s important to have coverage not only during the project but also after it’s finished. Completed operations coverage protects you if a claim arises after your work is done—for example, if a client is injured due to something related to your completed work.
• Reputable Carrier – Work with a financially stable insurance company that has a strong reputation for claims handling. If you ever face a lawsuit or large claim, you’ll want a carrier that stands behind you and makes the process as smooth as possible.

Why It’s Essential for Contractors in Michigan

For contractors, general liability insurance is more than just a box to check for a contract requirement. It’s the foundation of a strong risk management program that protects your livelihood.

By having the right coverage in place, you can focus on your projects with peace of mind—knowing that if something goes wrong, you won’t be facing the financial burden alone.

Final Thoughts

General liability insurance is a must-have for contractors in Michigan. From protecting against property damage to covering medical bills and legal defense costs, it safeguards your business from risks that come with the job.

If you’re unsure about the right coverage limits or whether you need additional protection through an umbrella policy, talk to an experienced insurance professional. The right advisor can help tailor coverage to your business so you’re neither underinsured nor overpaying.