Michigan business owners are required by law to maintain three basic forms of insurance. They are worker’s compensation, disability, and unemployment insurance. These requirements are utilized to protect the owner from common liabilities by providing coverage for their employees. Any failure to maintain insurance as outlined by the law could result in fines and probable litigation. Business owners who need answers about Cheap Insurance in Plymouth MI should contact their preferred agent.
Business Insurance Requirements
Worker’s compensation insurance assists the owner by providing benefits to cover their injuries after an on-the-job accident. These benefits cover medical costs, provide a percentage of wages, and ultimately prevent litigation. By choosing a group rate, the business owner may acquire Cheap Insurance in Plymouth MI to fulfill this requirement.
Disability insurance covers expenses for the employee if their injuries cause a short or long-term disability. This includes a percentage of their wages based on the amount of time they have spent with the company and the severity of their injuries. All medical costs associated with treatment of the disability are covered. An additional policy is available to the employee in which they can receive these benefits in the event of non-work-related injuries that prevents them from returning to work immediately.
Unemployment insurance pays the employee benefits for a specific duration after he or she is laid off. This coverage is based on the percentage awarded at the time that employment stopped. However, any employee who chooses to terminate their own employment themselves are not eligible for these benefits. However, the business owner could obtain Cheap Insurance in Plymouth MI to fulfill this requirement based on the number of employees he or she has working for them.
Small Business Insurance
Any business owner who operates their business within their home does not need to purchase business insurance unless, he or she has employees working off-site. In these circumstances, the Homeowners Insurance will provide coverage for the company. Any liabilities associated with the business are covered as long as the owner is the only individual working for the company and he or she never hires employees. This is beneficial for small-business owners who provide professional services within their property or online.