What is the minimum general liability insurance for contractors in Michigan?

Michigan requires residential builders to carry $100,000 GL minimum. Detroit area contractors face higher liability risk exposure. The Michigan Department of Licensing and Regulatory Affairs (LARA) sets licensing requirements that typically include proof of general liability insurance. Contact the Michigan Department of Insurance and Financial Services at https://www.michigan.gov/difs for current minimum requirements.

Who regulates business insurance in Michigan?

Business insurance in Michigan is regulated by the Michigan Department of Insurance and Financial Services. You can find information about licensed insurers, file complaints, and verify coverage requirements at https://www.michigan.gov/difs. Contractor licensing is handled separately by the Michigan Department of Licensing and Regulatory Affairs (LARA).

How much does business insurance cost in Michigan?

Business insurance costs in Michigan vary by trade and business size. Michigan has a cost index of 1 relative to the national average. A plumber in Michigan pays approximately $115/month for general liability, while a general contractor pays approximately $150/month. Use our trade-specific pages for exact estimates.

Can I get business insurance online in Michigan?

Yes. Most business insurers now offer online applications that take about 10 minutes — no broker call required. Same-day coverage is standard, and you can download your Certificate of Insurance (COI) immediately after purchase. Coverage is available for most trades operating in Michigan.

Business Insurance in Michigan (2026 Guide)

Michigan has 950,000+ small businesses. Michigan's small business economy spans Detroit's rebuilding neighborhoods, Grand Rapids' furniture-and-construction hub, and a large seasonal cottage economy up north. Here is everything you need to know about coverage requirements, costs, and licensing in Michigan.

TAI

Written by the American Insurance HQ Editorial Team

Last updated July 2026 · Reviewed against Michigan Department of Insurance and Financial Services and Michigan Department of Licensing and Regulatory Affairs (LARA) publications

Michigan Insurance Overview

State Insurance Regulator

Michigan Department of Insurance and Financial Services

Workers Comp System

Private Market

WC Required When

1 or more employees (or if payroll exceeds $1,000 annually)

Cost Index vs. National Avg

0% below average

Michigan requires residential builders to carry $100,000 GL minimum. Detroit area contractors face higher liability risk exposure.

Major Business Centers in Michigan

DetroitGrand RapidsWarrenSterling HeightsAnn Arbor

Average Insurance Costs in Michigan

Costs shown are estimated monthly premiums for common trades, adjusted for Michigan's market.

Trade	GL Est.	WC Est.	Details
Plumber	$115/mo	$195/mo	contractor
HVAC Contractor	$135/mo	$210/mo	contractor
Electrician	$120/mo	$215/mo	contractor
General Contractor	$150/mo	$240/mo	contractor
Handyman	$60/mo	$120/mo	contractor
Cleaning Business	$50/mo	$135/mo	service
Landscaper	$85/mo	$95/mo	service
Roofer	$185/mo	$350/mo	contractor
Painter	$75/mo	$105/mo	contractor
Pest Control	$105/mo	$185/mo	service

Estimates only. Actual premiums vary. Get a free quote for exact pricing.

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Michigan Business Insurance Requirements

Michigan sits almost exactly at the national average for business insurance, though Detroit-area contractors pay more for theft and vandalism exposure.

Michigan Department of Licensing and Regulatory Affairs (LARA)

Michigan requires residential builders to carry $100,000 GL minimum. Detroit area contractors face higher liability risk exposure.

Visit the Michigan Department of Insurance and Financial Services →

Climate context: Lake-effect snow, ice storms, and spring flooding are among the weather risks Michigan businesses face — a factor carriers price into local premiums and that businesses should consider when selecting coverage limits.

Workers Compensation in Michigan

Workers compensation in Michigan is required when you have 1 or more employees (or if payroll exceeds $1,000 annually), administered by the Michigan Workers Compensation Agency. The system type is Private Market.

WC Required When

1 or more employees (or if payroll exceeds $1,000 annually)

Administered By

Michigan Workers Compensation Agency

System Type

Private Market

Michigan Business Insurance FAQ

Michigan requires workers compensation when you have 1 or more employees (or if payroll exceeds $1,000 annually). Workers comp is administered by the Michigan Workers Compensation Agency. Michigan allows employers to purchase WC through the private insurance market.

Last reviewed: July 2026. Data sourced from Michigan Department of Insurance and Financial Services, NCCI rate filings, and the Michigan Department of Licensing and Regulatory Affairs (LARA).