Michigan Retail Store Insurance (MI) – policies and cost

Retail store Liability Insurance in Michigan  – (MI), is a crucial type of insurance to have for any company who conducts business selling to the public from local shops.

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If you’re a Retail store manager, you must buy retail store liability insurance, and here’s why! 

What actions do retail stores do in Michigan? 

But first, a retail store should not to be confused with a shop. There are many workshops that include the word shop in their name, like auto body shop that are not selling products, but provide services to the public.

The latter usually has some type of registered license, and so they need to get their own liability insurance in MI. A first-line supervisor in Michigan is likely to be younger than the average for the state, and to earn less than the average for Michigan.

Retailers deal in public to sell merchandise to institutional clients for personal consumption and so need Small Business insurance in Michigan to cover all possible risks.

Retail Store Insurance in Michigan

General statistics

About 6% of the total labor force in Michigan was working in the retail sector in 2020. 

Interesting fact – workers in MI are ten time more likely to find jobs in grocery stores than in book stores.

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What are the regular forms of retail store insurance policy types in Michigan? 

General liability insurance.

The usual general liability policy for retail stores in Michigan covers a total of $2 million for the whole year, with a upper limit of $1 million for a single claim.

Professional liability insurance

Every retailers in Michigan will see the need for a policy of at least $10000, and many choose substantially more when their own kind of business warrants it. In some cases, the insurance company in Michigan gives an incentive to include a deductible of a few hundred dollars, to stop the nuisance of ill-considered claims.

Product liability insurance

The standard level of cover in MI, is worked out on the type of products that the store sells as well as the level of sales.

Commercial vehicle insurance

Immediately after goods leave your premises in Michigan, your standard insurance stops cover. If you are doing your own deliveries with an auto, then you need targeted policy giving you commercial vehicle insurance in Michigan for the vehicle, the driver and the contents.

Commercial insurance

Retail business depends on stock and a physical shop. This means committing your money into premises and goods, and you cannot afford to let this get damaged. Commercial insurance in Michigan is especially designed to take into account the dangers that can end up costing you a lot of money.

Property insurance

Michigan carries special risks when it comes to buildings, and every business must take out the appropriate cover to protect property and contents. 

As well, the possibility of floods is increasing because of climate change, so every retailer should take care to get all the insurance necessary to cover even the most remote possibility.

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Business Income insurance

There has been a history of ups-and-downs in MI, that have hit retail businesses hard. It is advantageous to get proper cover in place before such a calamity occurs, rather than to expect that you can never be hurt.

Average costs of these types of insurance in Michigan

Although every business is unique, there are enough examples of average quotes from insurance companies in Michigan for us to give rough guidelines. Of course, you should always check with an insurance representative of what’s relevant for your business.

The below list is for annual premiums for the main types of insurance retailers need in Michigan.

Types of insurance Price range
Commercial vehicle insurance $1812 – $2646
Property insurance $1010 – $3190
General liability insurance $598 – $1444
Public liability insurance $364 – $722
Business income insurance $436 – $1075
Commercial insurance $1169 – $2743

Cost of insurance in Michigan depends on many different factors

Please remember that the above figures are based on averages for small retail businesses. The size and location of your business in Michigan can have a big impact on the cost, and also the type of trade and inventory will.

For Example – a liquor store on the high street has a much higher risk of vandalism than a bookstore conducting Michigan retail sales that is located inside a large mall, so the costs of the insurance will be very different.

FAQ section:

Do you need business insurance in Michigan?

Most retailers in MI, will have to have at least some insurance, covering laws because they are dealing with the public, and also probably to qualify to be permitted to register with a business license in Michigan . As well, insurance in Michigan is especially designed to take into account the occurrences that can end up costing you a lot of money.

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What is considered a retail store and what is not?

Some businesses use the phrase “shop” in their definition, but don’t really act as retailers.

For example:

  • auto repair shop
  • repair shop
  • tattoo shop
  • body shop
  • machine shop
  • motorcycle repair shop
  • auto body shop
  • dram shop
  • coffee shop
  • bike shop
  • tire shop
  • coffee shop
  • mechanic shop

A better classification would be if the business sells at least one of the following to the public:

  • Sport, recreation, and leisure goods.
  • Food and beverages as in supermarkets, liquor stores, fruit & vegetable grocers and specialty food stores
  • Specialty products for narrow sectors, like florists, jewellers.
  • Entertainment, communication, and technology goods.
  • General retail as in department stores and clothing retailers.
  • Home living and homeware, trade, and gardening goods.
  • Apparel like babywear, kids, women’s and men’s clothing.
  • Books, newspapers, magazines and office supplies.

Where to find the right insurance?

In every town in Michigan you will be able to find a qualified insurance agent or broker that can advise you on your best options. Most independent brokers and agents work six days a week, with the following opening times.

Opening Hours:
Monday – 8:00 AM – 6:30 PM
Thursday – 8:00 AM – 6:30 PM
Wednesday – 8:00 AM – 6:30 PM
Thursday – 8:00 AM – 6:30 PM
Friday – 8:00 AM – 6:30 PM
Saturday – 7:00 AM – 1:30 PM

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