NEXT tops our analysis of Michigan business insurance providers because of its strong customer service and comprehensive coverage. The Hartford and Simply Business are also reliable options for small business owners across the state.
Business Insurance in Michigan
NEXT tops our Michigan business insurance rankings with a MoneyGeek score of 4.62 out of 5.
Find affordable coverage that protects your small business in Michigan below.
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Updated: August 24, 2025
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Key Takeaways
Small business owners can get the best business insurance in Michigan from NEXT, The Hartford and Simply Business.
The best business insurance in Michigan depends on your industry risks, number of employees and desired coverage limits.
To find the best coverage, assess your risks, compare multiple quotes, research provider service quality and maximize available discounts.
Best Business Insurance Companies in Michigan
| NEXT | 4.62 | 4 | 1 | 2 |
| The Hartford | 4.61 | 1 | 2 | 3 |
| Simply Business | 4.48 | 5 | 5 | 1 |
| Nationwide | 4.46 | 8 | 2 | 4 |
| Coverdash | 4.41 | 6 | 6 | 2 |
| biBERK | 4.39 | 9 | 2 | 5 |
| Progressive Commercial | 4.32 | 3 | 7 | 5 |
| Thimble | 4.31 | 2 | 8 | 5 |
| Hiscox | 4.27 | 7 | 4 | 6 |
| Chubb | 4.27 | 10 | 3 | 4 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best by Coverage Type
NEXT leads Michigan businesses with excellent general liability coverage, professional liability insurance and workers' compensation. The Hartford offers the state's best business owner's policies (BOP).
| Business Owners Policy | The Hartford | 4.68 |
| General Liability | NEXT | 4.57 |
| Professional Liability (E&O) | NEXT | 4.73 |
| Workers Compensation | NEXT | 4.59 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best Michigan Small Business Insurance Reviews
Our research identified the top three business insurance providers in Michigan based on coverage, cost and customer service. Each company offers unique benefits that match different business needs.
NEXT
Best Customer Experience
MoneyGeek Rating
4.6/ of 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Cost of General Liability Insurance
$98This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$65This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.9/5Ranked #4 nationallyOur Survey: Likely to Be Recommended to Others
4.8/5Ranked #1 nationally
The Hartford
Best for Affordability
MoneyGeek Rating
4.6/ of 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Monthly Cost of General Liability Insurance
$77This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$65This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
4.5/5Our Survey: Likely to Be Recommended to Others
4.5/5
Simply Business
Best for Coverage Availability
MoneyGeek Rating
4.5/ of 5
4.4/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Monthly Cost of General Liability Insurance
$91This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$67This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.7/5Our Survey: Likely to Be Recommended to Others
4.2/5
Cheapest Business Insurance Companies in Michigan
The Hartford provides the most affordable business insurance in Michigan at $79 monthly ($951 annually), while Thimble and Simply Business offer competitive rates at $89 and $92 per month respectively. You'll find detailed pricing information for all providers in the comparison table below.
| The Hartford | $79 | $951 |
| Thimble | $89 | $1,064 |
| Simply Business | $92 | $1,099 |
| Progressive Commercial | $94 | $1,127 |
| NEXT | $95 | $1,137 |
| Coverdash | $95 | $1,145 |
| Nationwide | $96 | $1,155 |
| biBERK | $99 | $1,187 |
| Hiscox | $102 | $1,227 |
| Chubb | $111 | $1,330 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest General Liability Insurance Companies in Michigan
Michigan business owners can find the cheapest general liability coverage through The Hartford at $77 per month. Simply Business offers the next most affordable option at $91 monthly. Compare all provider rates in the table below.
| The Hartford | $77 | $928 |
| Simply Business | $91 | $1,088 |
| Nationwide | $92 | $1,102 |
| Progressive Commercial | $95 | $1,136 |
| NEXT | $98 | $1,171 |
| Coverdash | $98 | $1,175 |
| Thimble | $102 | $1,219 |
| Hiscox | $108 | $1,297 |
| biBERK | $108 | $1,299 |
| Chubb | $113 | $1,350 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Professional Liability Insurance Companies in Michigan
The Hartford offers the most affordable professional liability insurance (E&O) at $67 monthly ($810 annually). NEXT provides another option for Michigan business owners.
| The Hartford | $67 | $810 |
| NEXT | $68 | $813 |
| Progressive Commercial | $71 | $851 |
| Thimble | $72 | $860 |
| Simply Business | $73 | $872 |
| Coverdash | $73 | $878 |
| Hiscox | $73 | $879 |
| biBERK | $75 | $903 |
| Nationwide | $78 | $933 |
| Chubb | $84 | $1,006 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability/errors and omissions policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Workers’ Comp Insurance Companies in Michigan
NEXT offers Michigan's cheapest workers' comp coverage at $65 monthly ($782 annually). The Hartford and Thimble also provide competitive rates, making all three solid choices for affordable business coverage in the state.
| NEXT | $65 | $782 |
| The Hartford | $65 | $782 |
| Thimble | $66 | $798 |
| Simply Business | $67 | $803 |
| Progressive Commercial | $68 | $813 |
| Hiscox | $68 | $814 |
| Coverdash | $69 | $824 |
| biBERK | $71 | $854 |
| Nationwide | $76 | $916 |
| Chubb | $80 | $962 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest BOP Insurance Companies in Michigan
The Hartford provides the cheapest BOP rates in Michigan at $107 per month ($1,284 annually). Business owners can also find affordable BOP insurance with Thimble, Simply Business and Nationwide.
| The Hartford | $107 | $1,284 |
| Thimble | $115 | $1,379 |
| Simply Business | $136 | $1,631 |
| Nationwide | $139 | $1,671 |
| biBERK | $141 | $1,692 |
| Coverdash | $142 | $1,702 |
| Progressive Commercial | $142 | $1,709 |
| NEXT | $148 | $1,782 |
| Hiscox | $160 | $1,916 |
| Chubb | $167 | $2,001 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP policies. Survey results reflect limited sample data and may not represent all available rates in your area.
How Much Does Business Insurance Cost in Michigan?
Business insurance in Michigan costs between $70 and $140 monthly, with workers' compensation being the most affordable and business owner's policies the most expensive. Rates vary based on the coverage type your business needs.
| BOP | $140 |
| General Liability | $98 |
| Professional Liability (E&O) | $73 |
| Workers Comp | $70 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cost of Business Insurance by Industry and Coverage
Business insurance costs in Michigan vary significantly by industry and coverage type. A speech therapist pays just $6 monthly for workers' compensation insurance, while pressure washing businesses pay $1,280 monthly for a business owner's policy.
Data filtered by:Results filtered by:
Select
Coverage Type:Business Owners Policy
Select
Industry:Accountants
| Accountants | Business Owners Policy | $30 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
What Factors Influence My Costs?
Want to know why your premiums are so high? We listed several factors that impact your premiums:
Industry Risk Level
Your business type has the biggest impact on what you'll pay. Construction companies face much higher rates than consultants because insurers know construction sites have more accidents. For example, a contractor pays hundreds monthly, while a consultant pays just tens of dollars.
Geographic Location and Weather Risks
Your location in Michigan influences insurance costs. While the state faces fewer natural disasters than coastal regions, Michigan businesses still need protection from severe storms, tornadoes and winter weather damage. According to NOAA data, Michigan experiences an average of 15 tornadoes annually, affecting insurance rates particularly in high-risk areas.
Business Size
Your employee count and revenue directly impact insurance costs. In Michigan, workers compensation insurance costs about $1.76 per $100 of payroll, while general liability rates increase with higher revenue and customer traffic. A retail store with 20 employees pays notably more than a solo consultant working from home.
Claims History
Your claims record affects rates across all coverage types. Even one liability claim can increase your premiums for three to five years. Insurers offer better rates to businesses that maintain claim-free records and show consistent risk management practices.
Coverage Types and Limits
Your coverage choices shape your premium costs. While higher limits increase rates, business owner policies can reduce costs by bundling property and liability coverage. Michigan businesses often save 10% to 15% through package policies versus buying coverage separately.
Years in Business
New businesses pay higher premiums since insurers lack data to assess risk levels. After three years of operation with no claims, many Michigan businesses see rate reductions of 10% to 25% as they build a positive track record.
Professional Certifications
Safety certifications and professional licenses can lower your insurance costs. Michigan contractors with OSHA safety certifications often receive discounts of 5% to 15%. Professional credentials show insurers you follow industry best practices, reducing your risk profile.
Michigan Business Insurance Buying Guide
Running a business keeps you busy enough without spending hours figuring out insurance. Getting business insurance doesn't need to be complicated for Michigan entrepreneurs. Our guide walks you through each step to help you protect your Michigan business.
What Coverage Is Required?
We've researched all Michigan business insurance requirements so you don't need to spend time doing it yourself. Check out our detailed breakdown of state requirements in the section below.
Workers' Comp
Michigan requires workers' compensation insurance for most businesses, with some specific exemptions for small operations. You must carry workers' comp if you have three or more employees regularly employed at the same time. This makes Michigan more lenient than most states, which require coverage with just one employee. Corporate officers can opt out if they own at least 25% of the company, and sole proprietors and partnerships are exempt unless they choose coverage. However, coverage requirements may be stricter if you have a contract with a government entity.
Commercial Auto Insurance
Small businesses that own vehicles or require employees to drive for work need commercial auto insurance. Michigan has unique no-fault insurance laws requiring unlimited personal injury protection, at least $50,000 per person and $100,000 per accident for bodily injury, plus $10,000 for property damage. These requirements make Michigan auto insurance among the most comprehensive and expensive in the nation.
Unemployment Insurance
Michigan requires unemployment insurance for businesses that pay wages of $1,000 or more in any quarter or employ one or more workers for 20 weeks during a calendar year. You must register with the Michigan Unemployment Insurance Agency and pay quarterly contributions based on your payroll and experience rating.
Professional Liability Insurance
If you hold a professional license in Michigan for medical, legal, architectural or engineering work, you'll typically need professional liability insurance. Healthcare providers must carry malpractice coverage, while other professionals should check with their licensing boards for specific requirements. The coverage amounts vary by profession and practice type.
Contractor Bonds and Insurance
If you hold a contractor license in Michigan, you'll need liability insurance and may need to post a surety bond depending on your work type. Residential builders must carry at least $100,000 in liability coverage, while specialty contractors have varying requirements. This protects customers if you don't complete work as promised or follow licensing rules.
What Coverage Do We Recommend?
Michigan gives business owners significant freedom in choosing insurance coverage, but this flexibility means you need to make smart decisions. Here's our analysis of the best coverage options for the state's leading industries:
Manufacturing | General liability, product liability, workers' compensation, commercial property, business interruption, automotive supply chain coverage, winter weather protection, tornado coverage, environmental liability | Michigan automotive, aerospace and furniture manufacturers face product liability from safety-critical components and supply chain disruptions. Severe winter weather and tornadoes can shut down operations, while automotive industry volatility creates business interruption risks. |
Auto Repair | General liability, garage liability, commercial property, workers' compensation, commercial auto, tools and equipment, environmental liability, winter weather coverage, road salt corrosion coverage | Michigan auto repair shops face elevated liability from automotive manufacturing support, road salt corrosion issues and harsh winter conditions affecting vehicle operations. Specialized equipment and high-volume repair work create elevated property and liability exposure. |
Trucking | Commercial auto, cargo coverage, general liability, workers' compensation, winter weather coverage, Great Lakes shipping connections, automotive parts transport, ice road conditions, supply chain coverage | Michigan trucking companies face severe winter driving conditions, automotive supply chain pressures and Great Lakes shipping connections. Ice storms and blizzards create elevated accident risks, while just-in-time automotive delivery creates time-sensitive cargo liability. |
Construction/Contractor | General liability, workers' compensation, commercial auto, builder's risk, professional liability, winter weather delays, tornado coverage, Great Lakes construction coverage, automotive facility construction | Michigan construction faces severe winter weather delays, tornado damage and specialized requirements for automotive facility construction. Construction projects require marine-grade materials and specialized coverage for harsh weather and water exposure. |
Marine | Marine general liability, hull and machinery, Great Lakes vessel coverage, winter lay-up coverage, ice damage protection, cargo coverage, commercial fishing vessel, pollution liability | Michigan marine businesses on the Great Lakes face ice damage, winter lay-up periods, and shipping season limitations. Commercial fishing and cargo operations require specialized coverage for freshwater conditions and seasonal weather extremes. |
How to Get the Best Cheap Business Insurance in Michigan
Getting the right business insurance for your Michigan company can strain your budget and time. Here are practical steps to secure reliable coverage while keeping costs manageable:
- 1
Assess Your Business Risks
Review your Michigan business operations to identify risks rather than accepting blanket recommendations. A Detroit restaurant needs strong property coverage for winter storm damage, while an Ann Arbor tech startup prioritizes cyber liability protection.
- 2
Compare Multiple Insurance Quotes
Insurance companies evaluate Michigan businesses differently, leading to significant price variations for the same coverage. Contact at least three providers to find competitive rates. Many Michigan business owners save 15% to 30% by shopping around.
- 3
Evaluate Provider Reputation
Research each insurer's track record with Michigan businesses before making a decision. A Grand Rapids manufacturing company needs an insurer familiar with industrial equipment claims, while a Lansing retail store wants quick response times for property damage.
- 4
Use Available Discounts
Combine policies and maintain good safety records to reduce costs. A Michigan landscaping business can save by bundling general liability with commercial auto insurance and documenting regular equipment maintenance.
- 5
Schedule Annual Coverage Reviews
Your Michigan business insurance needs change with growth and market conditions. A small Traverse City boutique that expands to online sales needs to adjust coverage for shipping and cyber risks.
Michigan Business Insurance: Bottom Line
Based on our analysis, NEXT, The Hartford and Simply Business are Michigan's best business insurance providers. However, what's ideal for you depends on your business risks and employee needs. Research each company's service quality, maximize discounts and select coverage that fits your budget.
Small Business Insurance in Michigan: FAQ
Finding the right business insurance in Michigan raises many questions for small business owners. Below, we answer the most frequently asked questions:
What business insurance is required by law in Michigan?
Michigan requires workers' compensation for businesses with three or more employees or one employee working 35+ hours weekly. Commercial auto insurance minimums are $50,000/$100,000/$10,000. Licensed contractors need surety bonds.
How much does business insurance cost in Michigan?
Our analysis shows that business insurance costs range from $70 to $140 monthly, depending on coverage. Workers' compensation is the most economical at $70, while BOPs run $140. Your industry, business size and claims history affect final costs.
Which company has the cheapest business insurance in Michigan?
The Hartford offers the lowest rates at $79 monthly in Michigan, with Thimble ($89) and Simply Business ($92) following behind. Compare multiple quotes since rates vary by business risk factors.
What business insurance do I need for my small business in Michigan?
Start with general liability insurance, which averages $79 monthly through The Hartford in Michigan. Include workers' compensation if you employ staff and commercial auto for company vehicles. Tech startups typically need cyber liability, while contractors require equipment coverage and bonding.
What is the best business insurance company in Michigan?
NEXT leads Michigan's business insurance market with a MoneyGeek score of 4.62 out of 5. The Hartford and Simply Business round out the top choices.
We suggest comparing multiple insurance providers to match your business requirements for optimal coverage and rates.
Do small businesses in Michigan need workers' compensation insurance?
Yes, Michigan businesses with three or more employees or one employee working 35+ hours weekly must carry workers' compensation insurance. Government contractors also require coverage regardless of size.
What factors affect business insurance costs in Michigan?
Your industry significantly impacts costs. Construction businesses pay higher premiums than retail stores. Location within Michigan affects rates, with urban areas having higher costs than rural regions. Larger workforces mean higher workers' compensation premiums. Claims history and safety measures influence rates.
How do I get cheap business insurance in Michigan?
Compare quotes from top insurers like The Hartford and NEXT. Research their service quality and coverage options, then bundle policies and implement safety programs for discounts.
What's the difference between general liability and errors and omissions (professional liability) insurance in Michigan?
General liability insurance covers property damage and physical injuries. Professional liability (E&O) covers financial losses from service-related errors, poor advice or missed deadlines.
Can I get business insurance quotes online in Michigan?
Yes, leading providers like NEXT and The Hartford offer online quotes. Complex businesses may need agent assistance for specialized coverage like pollution liability.
How We Scored the Best Business Insurance Companies in Michigan
Small business owners in Michigan need reliable coverage that protects their operations without breaking their budgets. We designed our methodology to help Michigan entrepreneurs navigate challenges like severe weather risks and the state's optional workers' compensation laws.
We studied thousands of quotes from 79 industries across four coverage types for a two-employee firm with $300,000 annual revenue and $150,000 payroll. All policies included $1 million per occurrence and $2 million total per year, with BOPs adding $5,000 business property coverage.
- Affordability (50% of score): We compared premiums across multiple carriers, factoring in deductibles and coverage limits to determine overall value.
- Customer experience (30% of score): Our analysis examined claims processing speed, customer support quality and digital tools.
- Coverage options (15% of score): We evaluated policy customization options and industry-specific endorsements available to Michigan businesses.
- Financial strength (5% of score): We assessed each insurer's ability to pay claims using ratings from independent agencies.
This approach helps Michigan small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.
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.
sources
- National Centers for Environmental Information. "Billion-Dollar Weather and Climate Disasters." Accessed August 24, 2025.
- Trustpilot. "Simply Business US." Accessed August 24, 2025.