Best General Liability Insurance in Michigan (2023)

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.

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.

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.

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.

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.

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 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.

The cost of general liability insurance for a particular business will vary based on the following factors:

MoneyGeek answered common questions to help you learn more about general liability insurance in Michigan.