Depending on your business type, you may be required to obtain one or more business insurance policies. In Michigan, if you have three or more employees at any time, or one employee working at least 35 hours per week for 13 weeks or longer in the past 52 weeks, you will be required to obtain workers’ compensation insurance.
If you rent or lease a space, you likely want commercial renter’s insurance. You should also consider general business liability insurance. Other state and federal licensing might require you to have certain insurance policies.
Consult with a commercial insurance agent to fully understand insurance requirements. It’s important to note that even if you aren’t required to get insurance, it is a wise idea to get the protection it offers for what can be devastating financial losses.
Starting a business in Michigan is exciting but requires establishing the right entity, getting your financials in order and securing the perfect location. Forming a business entity doesn’t cost a lot, making it easy to start your business. All of these details should be outlined in your business plan, which is an internal document that you refer back to regularly and use to help secure funding for your business.
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