MoneyGeek analyzed Michigan's general liability insurance companies based on affordability, customer satisfaction, financial stability and the online quote process to determine the best insurers. Nationwide ranked as the best insurer overall in Michigan, earning a MoneyGeek score of 89 out of 100. Nationwide’s policies cost an average of $34 per month for both sole proprietors and LLCs.
Next offers the cheapest general liability insurance in Michigan, with an average premium of $25 per month for sole proprietors with no employees and $26 per month for LLCs with 20 employees.
Best General Liability Insurance in Michigan




Best Overall General Liability Insurance in Michigan
Nationwide is the best general liability insurance company in Michigan, earning an overall MoneyGeek score of 89 out of 100. Next also earned a score of 89, but customer satisfaction was a tiebreaker, allowing Nationwide to come out on top.
Moneygeek analyzed six insurers in Michigan. The table below shows how they ranked, along with their average costs and MoneyGeek scores.
How was this MoneyGeek score calculated?

Second-cheapest insurer for LLCs
High customer satisfaction score
Financially strong
Most expensive rates for sole proprietors
Slow online quote process
Nationwide offers the best general liability insurance in Michigan, balancing cost and service quality. This insurer has the second cheapest rates for LLCs but has relatively expensive rates for sole proprietors.
Nationwide stands out for having excellent customer service, meaning that policyholders get good value for their money. In addition, its strong financial stability rating means that this company can handle its financial obligations, including payment of claims. However, while online quotes are available, the process can be slow.
Cheapest General Liability Insurance in Michigan
Next is the cheapest company overall for general liability insurance in Michigan at an average of $25 per month for sole proprietors and $26 per month for LLCs.
Moneygeek determined the cheapest insurer in Michigan based on an affordability score that combines the monthly costs for sole proprietors and for LLCs, each weighted at 50%. The cheapest overall insurer may therefore not have the lowest rates for both sole proprietors and LLCs.
How was this MoneyGeek score calculated?

Cheapest insurer for LLCs
Third-cheapest rates for sole proprietors
Fast online quote system
Low financial strength rating
Next is the best insurer for those looking for cheap general liability insurance in Michigan. Of the six insurers analyzed, Next offers the cheapest average rate for LLCs and is the third cheapest option for sole proprietors.
Next offers an efficient online quote process; on average, it will take you about a minute to get a quote for your business. However, Next does not have a strong financial stability rating compared to the other insurers we evaluated.
Best General Liability Insurance for Employers in Michigan
Nationwide offers the best general liability insurance for employers in Michigan, earning an overall Moneygeek score of 94 out of 100. Nationwide is the second-cheapest company for LLCs with 20 employees at $34 per month.
This ranking is based on the average monthly cost for LLCs with 20 employees. Rates can vary depending on employee count — businesses with fewer than 20 employees can expect to pay less than the average cost we calculated, while LLCs with more than 20 employees can expect to pay higher rates.
How was this MoneyGeek score calculated?

Second-cheapest company for LLCs
Strong financial stability rating
High customer satisfaction score
Slow online quote process
Nationwide is the best insurer for employers in Michigan looking for a balance of cost and service quality. This insurer offers the second-cheapest rates for LLCs with 20 employees at an average of $34 per month. Based on data from the NAIC complaint index, Nationwide receives fewer complaints than expected for a company of its size, meaning that policyholders are generally satisfied with the service they receive.
Nationwide also boasts a strong financial stability rating, indicating that it is able to honor its financial obligations, including paying out claims. However, compared to other insurers in the comparison group, Nationwide’s online quote process is relatively slow.
Best General Liability Insurance for Sole Proprietors in Michigan
biBERK is the best general liability insurance company for sole proprietors in Michigan, earning an overall MoneyGeek score of 97 out of 100. biBERK is the second-cheapest company for sole proprietors at an average of $23 per month.
This ranking is based on average rates for sole proprietors with no employees. Sole proprietors in risky industries like construction may incur high rates.
How was this MoneyGeek score calculated?

Second-cheapest company for sole proprietors
High customer satisfaction and financial strength ratings
Online quotes take longer than average
biBERK offers sole proprietors in Michigan a combination of affordable rates and great customer service. A policy for a sole proprietor with no employees costs an average of $23 per month. Quotes are available online, though the process can be relatively slow.
biBERK stands out from competitors thanks to its high customer satisfaction rating, indicating that it receives fewer complaints than the average. You can also expect this insurer to meet its financial obligations as it has a strong financial stability rating.
Do You Need General Liability Insurance in Michigan?
Michigan law does not mandate general liability insurance for businesses. However, it is still wise to get this coverage since it offers key financial protections, including:
- Third-party bodily injuries: A general liability policy will cover medical expenses if a customer sustains injuries at your business.
- Third-party property damage: A general liability policy covers damages caused by your business or employees to a third party’s property.
- Personal and advertising injury: General liability insurance covers legal expenses and damages if your business or employees are sued for slander, libel or copyright infringement.
Although general liability insurance is not a legal requirement, you may need it to win contracts or obtain business licenses in some industries.
In Michigan, business insurance requirements include mandatory workers' compensation insurance for any business with three or more regular employees (including part-time workers) or with at least one employee working more than 35 hours per week. Businesses are also required to have commercial auto insurance for company-owned vehicles with the following minimum limits:
- $50,000 per person for bodily injury liability
- $100,000 per accident for bodily injury liability
- $25,000 per accident for property damage liability
The Michigan Economic Development Corporation (MEDC) offers various small business support programs, including International Trade, Entrepreneurship & Innovation and community development small business programs. Incentive programs that offer grants and loans are also available through the Michigan Business Development Program to assist companies that provide employment or invest in the state.
How Much Is General Liability Insurance in Michigan?
The average cost of general liability insurance in Michigan is $47 per month for LLCs and $27 per month for sole proprietors. For this analysis, Moneygeek used a policy with a $2 million aggregate limit, a $1 million occurrence limit and a $0 deductible.
The aggregate limit is the maximum amount that the general liability policy can pay in a given policy period, while the occurrence limit is the maximum amount that the policy can pay out per claim. The deductible is the amount that you are required to pay out of pocket before the policy will pay a claim.
Factors That Impact General Liability Insurance Costs in Michigan
The cost of general liability insurance for a particular business will vary based on the following factors:
Policy limits
A general liability policy with high aggregate and occurrence limits will cost more compared to a policy with low limits, as higher limits mean that the policy offers more coverage.
Number of employees and payroll costs
Businesses with more employees will generally pay more for general liability insurance. For example, the average cost of policies for sole proprietors with no employees in Michigan is lower than for LLCs with 20 employees.
Business location
Businesses in risky locations typically pay more for general liability insurance since they are more likely to file claims. As such, average statewide rates can vary depending on the city.
Claims history
Businesses with a history of filing claims can expect to be charged higher rates for general liability insurance compared to those that remain claim-free.
Industry
General liability insurance is more costly for businesses in high-risk industries like construction since they are more likely to file claims. You can compare the average rates for general liability insurance in Michigan by industry in the table below.
Frequently Asked Questions About General Liability Insurance in Michigan
MoneyGeek answered common questions to help you learn more about general liability insurance in Michigan.
About Melissa Wylie

sources
- Michigan Economic Development Corporation. "Small Business Assistance and Resources." Accessed May 10, 2023.