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Michigan Business Owner’s Policy Guide

Michigan’s standard fire-policy statute sets a minimum framework, including actual-cash-value language and disclosure of property or perils not covered. DIFS says some commercial insurance rules and rates may be exempt from submission when a prominent notice appears on the policy. Ask for the issued forms and endorsements to see how the package values property, what triggers business income, and which losses remain outside it. 1,3

What Is Business Owner’S Policy?

A BOP may suit an eligible small business that wants property, liability and lost-income protection together. If you also need auto, workers’ compensation or professional liability, plan for separate coverage. Read the national Business owner’s policy guide.

What to Watch for in Michigan

  • Read the fire-property section with the declarations

    Michigan requires covered fire policies to contain statutory terms, including actual-cash-value language and disclosure of property and perils not covered. Check the property schedule, valuation endorsement and exclusions rather than assuming the package label supplies replacement cost. 1

  • A filing exemption does not tell you what the policy covers

    DIFS says commercial insurance rules and rates, except workers’ compensation, need not be submitted when the policy carries a prominent §500.2236 disclaimer. The page does not describe a form-filing exemption; request the actual forms and do not treat filing status as a coverage grant. 2

  • Business income follows the property trigger

    DIFS says business-interruption coverage addresses lost income and expenses tied to a covered property loss, with terms varying by policy. Ask what physical loss must occur, how long the waiting period is and how restoration and payroll expenses are treated. 3

  • A package quote does not establish flood protection

    DIFS notes commercial property policies generally do not cover flood. Review the BOP’s water exclusions and request a separate flood quote if the location or inventory exposure warrants it. 3

Who Regulates Insurance in Michigan

Michigan Department of Insurance and Financial Services

The Michigan Department of Insurance and Financial Services licenses agents, agencies and companies, supervises insurance business, and helps resolve complaints. You can use its state lookup or complaint service to check a license or raise an insurance issue. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 2.5% combined surplus-lines tax and regulatory fee on premium when Michigan is the insured's home state Michigan's Property and Casualty Guaranty Association is funded by insurers authorized to transact in the state; an insurer procured solely under Chapter 19 is expressly not considered authorized for that chapter. The surplus-lines policy must carry a notice that the insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed. 7,8,9

Providers With Documented State Licenses

These providers publish a national listing for Business owner’s policy; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Michigan. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • CorgiCorgi Insurance Services, Inc.Insurance producer · checked 2026-09-28Corgi’s company producer-license table lists 50 jurisdictions: 49 states and the District of Columbia, including DC license 3003091619. New Mexico does not appear in the table and is not included here; the omission does not establish that Corgi is unlicensed there. The company-reported table has no stated as-of date and does not establish product availability. 12
  • ERGO NEXT InsuranceNext First Insurance Agency, Inc.Insurance producer · checked 2026-09-28ERGO NEXT’s current license table lists Next First Insurance Agency, Inc. in 50 jurisdictions, including Washington, DC; New York is excluded because its table rows name Next Insurance Services and AP Intego, not Next First. The table is company-reported; it does not establish product availability or provide state-regulator verification for each entry. 14
  • HiscoxHiscox Insurance Company Inc.Insurer · checked 2026-09-28Hiscox’s U.S. company information states that Hiscox Insurance Company Inc. is licensed in all 50 states and the District of Columbia. This is company-reported insurer authority for this entity and does not establish which company issues every Hiscox-branded product. 13
  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 15

Questions to Ask Before You Buy in Michigan

  1. Does the issued property form replace actual-cash-value language with replacement-cost coverage, and which property qualifies?
  2. Does the policy carry the DIFS §500.2236 disclaimer, and which complete form editions and endorsements will be issued?
  3. What property damage triggers business income, and what waiting period, restoration limit and payroll treatment apply?
  4. Are flood, surface water and sewer or drain backup treated separately in the BOP forms?

Business Owner’S Policy in Michigan: FAQ

Does a commercial filing exemption mean Michigan approved the BOP’s coverage? 2

No. DIFS describes an exemption from submitting specified commercial insurance rules and rates when the required notice is included. Its page does not say the policy forms are exempt. Review the issued language to understand coverage. 2

When does BOP business-income coverage apply? 3

DIFS describes business-income protection as responding to lost income and expenses after a covered property loss. The policy controls the trigger and duration, so ask for those terms in writing. 3

Business Owner’S Policy in Other States

Other Coverage in Michigan

Sources

  1. Michigan Compiled Laws § 500.2833. Michigan Legislature; 2026 compiled statute, complete through PA 91 of 2026, §500.2833(1)–(2), standard fire policy and disclosures. Accessed 2026-09-28.
  2. Commercial Filing Exemption. Michigan Department of Insurance and Financial Services; Current DIFS page, MCL 500.2236 exemption scope and required notice, lines 348–350. Accessed 2026-09-28.
  3. Disaster Preparedness and Insurance Recovery in Michigan. Michigan Department of Insurance and Financial Services; Commercial-property and business-interruption discussion, lines 572–577. Accessed 2026-09-28.
  4. Department of Insurance and Financial Services. Department of Insurance and Financial Services; Official regulator and insurance oversight. Accessed 2026-09-28.
  5. Insurance License Lookup. Department of Insurance and Financial Services; State-designated producer/company search. Accessed 2026-09-28.
  6. File an Insurance Complaint. Department of Insurance and Financial Services; State complaint process and contact. Accessed 2026-09-28.
  7. Surplus Lines Licensee: Filing the Surplus Lines Taxes. Michigan Department of Insurance and Financial Services; DIFS current filing page: Michigan-home-state placements taxed at 2.5% combined tax and regulatory fee; separate fees charged to insured are not included in premium tax base. Accessed 2026-09-28.
  8. Michigan Insurance Code, Chapter 500. Michigan Legislature; MCL 500.7911(1)-(2), 500.7921(b): association membership tied to insurer authorized to transact; insurer procured solely under Chapter 19 is expressly not authorized for guaranty chapter. Accessed 2026-09-28.
  9. Michigan Insurance Code, Chapter 500. Michigan Legislature; MCL 500.1922 requires policy notice that insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed. Accessed 2026-09-28.
  10. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  11. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  12. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  13. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  14. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  15. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  16. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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