Nationwide emerged as the top contender for Michigan’s best general liability insurance in MoneyGeek’s analysis with a score of 94 out of 100. However, NEXT, The Hartford, Hiscox, and Thimble are also great options for best general liability insurance.
Best General Liability Insurance in Michigan
Updated: June 20, 2025
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Key Takeaways
Overall, the best general liability insurance company in Michigan is Nationwide, which has a great balance of affordable rates for LLCs and good customer service.
The cheapest general liability insurance for sole proprietors in Michigan is offered by NEXT at $27 per month. For LLCs, NEXT is the most affordable option at $28 a month.
General liability insurance costs in Michigan depend on your industry, and we found they can range from $30 to $2,114 per month on average.
Best Cheap General Liability Insurance in Michigan
| Nationwide | 94 | $37 | $37 |
| NEXT | 90 | $27 | $28 |
| The Hartford | 88 | $33 | $52 |
| Hiscox | 83 | $32 | $68 |
| Thimble | 79 | $33 | $75 |
*Rates were based on a $1,000,000 per occurrence and $2,000,000 aggregate limit for a software development company.
Nationwide: Best Overall
pros
Low rates for LLC businesses
Large coverage selection
Low customer claims frequency
cons
Higher rates for sole proprietors
COMPANY HIGHLIGHTS
We selected Nationwide as Michigan's standout general liability insurer thanks to its winning combination of cost efficiency and reliable service standards. The company matches the industry's lowest claims ratio per NAIC records and although it's the most expensive for sole proprietors, it's the second most affordable for LLCs in the state.
NEXT: Cheapest Overall
pros
Easy fast buying process
Very cheap rates overall, regardless of business size
Business-insurance-only focus
cons
Higher customer complaint frequency
COMPANY HIGHLIGHTS
Our Michigan winner for budget-conscious general liability coverage is NEXT. At $27 monthly for sole proprietorships and $28 for limited liability companies, its pricing is the best for both types. While the insurer's claims statistics trail competitors we've assessed throughout the state, customers appreciate the user-friendly buying experience and immediate insurance documentation.
How Much Is General Liability Insurance in Michigan?
General liability insurance in Michigan for software developers costs about $30 per month for sole proprietors and $50 for LLCs with 20 employees. Costs can vary widely by industry.
| Cleaning | $1,204 | $62 |
| General Contractor | $2,114 | $147 |
| Software Development | $50 | $30 |
*Rates are based on a $1,000,000 per occurrence and $2,000,000 aggregate coverage policy for general liability.
Factors That Impact General Liability Insurance Costs in Michigan
General liability insurance costs can fluctuate based on a number of different factors in Michigan. In the list below, you can see these factors and their impacts on your coverage costs: Business size, industry type, location, claims history, and coverage limits all play a role in determining your premiums.
Policy limits
Coverage limits can greatly influence insurance costs. Opting for higher limits will raise expenses, while choosing lower limits generally leads to more affordable premiums.
Number of employees and payroll costs
Businesses with a large workforce and high payroll expenses often see increased general liability insurance costs. Research on LLCs and sole proprietorships supports this connection.
Business location
Where a business operates can significantly affect insurance expenses. State-level average rates may differ by city, so it's important to account for these variations when assessing coverage needs.
Claims history
A record of multiple claims can make a business seem riskier to insurers, which can lead to higher premiums.
Industry
Industries with higher risk levels, like construction, typically encounter higher general liability insurance expenses.
Michigan General Liability Insurance: Buyer's Guide
Business insurance is a complicated industry and can be difficult to navigate. So, to simplify your understanding of general liability insurance, we've created a short guide detailing how to get the best coverage, defining what it covers, listing requirements in Michigan, and explaining how much coverage you should consider getting.
How to Find the Best General Liability Insurance Company
To help ensure that you get the best small business insurance regardless of your industry, we've created a step-by-step guide to simplify your coverage search.
- 1
Define your coverage needs
Find out your liability risk by considering your industry, products or services, customer types, business size and market impact. To evaluate coverage options better, measure the frequency and costs of common claims in your industry.
- 2
Research average costs for your business
To understand how good of a deal you're getting from business insurance companies, you need to research average costs for your particular business. Knowing average expenses will give you an idea of whether a company is saving you money.
- 3
Consult similar businesses
Your business community is your greatest resource, which can give you recommendations that are better for your specific needs. They may also provide ways to mitigate risks associated with general liability insurance. This may mean you don’t need extra coverage.
- 4
Compare multiple options through different means
You can judge which insurance option suits you best by comparing multiple companies. You can also choose multiple ways to compare, like online comparisons or using brokers. This can provide a comprehensive view of pricing.
What Does General Liability Insurance Cover and How Does It Work?
General liability insurance coverage consists of two parts: per occurrence and aggregate limits. Per occurrence refers to the maximum a single claim can go up to, while the aggregate limit is the total coverage you can get per year. In terms of covered items, this type of policy includes the following:
Bodily injuries or property damage on business property
Legal fees for bodily injury or property damage that your company may be responsible for
Damages to leased or rented business property
Bodily injury or property damage caused by your product or service
Libel, slander, or reputational harm legal defense
Legal fees for copyright infringement accusations
Is General Liability Insurance Required in Michigan?
Like in most states, general liability insurance isn't expressly required by state law and instead varies by your industry. However, if you are looking to apply for a professional license, sign a contract with a larger company, or sign an office lease, some form of general liability insurance may be required. While not an exhaustive list, the following industries tend to fall into these categories:
- Medical
- Accounting
- Real estate
- Insurance
- Contracting
- Engineering
- Marketing
- Law
- Consulting
- Media/Communications
How Much General Liability Insurance Do I Need?
Most small businesses will only need a standard policy with 1 million dollars of protection per occurrence and a 2 million limit per year. This will likely cover most or all damages caused over a year for most business types. Even so, your particular industry's risks and the size of your operation may require a larger coverage limit than standard.
WHO MAY NEED MORE COVERAGE
Certain businesses face more risks and often need more insurance protection. These include companies in health care, building, serving food and drinks, and selling things. If you own a business like this, think about getting more insurance. Bigger companies with many workers or those that sell many of their products or services should also check if they need extra insurance.
Best General Liability Insurance in Michigan: Bottom Line
Overall the best general liability insurance companies in Michigan are Nationwide, NEXT, and The Hartford. However, we recommend comparing around yourself and getting plenty of quotes to ensure you get the best deal possible.
General Liability Insurance in Michigan: FAQ
Below, we address frequently asked questions regarding general liability insurance in Michigan: Understand your coverage needs and options.
Which company has the best general liability insurance in Michigan?
MoneyGeek's leading choice for general liability insurance in Michigan is Nationwide, which earned an overall score of 94 out of 100. However, the ideal insurance for you depends on various details, including your business size, number of employees, and specific coverage requirements.
Which company has the cheapest general liability insurance in Michigan?
NEXT offers the most affordable general liability insurance in Michigan for both business types. Sole proprietors pay an average of $324 per year, while LLCs pay $336 per year.
Does Michigan require businesses to have general liability insurance?
In Michigan, while it's not a legal requirement, securing general liability insurance is prudent to protect your business from potential financial burdens due to third-party claims.
How We Chose the Best General Liability Insurance Providers in Michigan
We broke down our scores into these categories and weights:
- LLC cost (55% of score)
- Sole proprietor cost (5% of score)
- Customer satisfaction (25% of score)
- Financial strength (10% of score)
- Quote process time (5% of score)
For all business insurance companies, we assumed software development industry LLCs with 20 employees. We based customer satisfaction and financial strength scores on NAIC and AM Best ratings. Quote process scores came from our MoneyGeek experts' personal experiences.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.