Question 1

What insurance do Michigan manufacturers need?

Accepted Answer

Michigan manufacturers need workers' compensation (required by law), general/product liability ($1M–$10M depending on OEM requirements), commercial property, equipment breakdown, and commercial auto. Auto suppliers also need product recall coverage and completed operations coverage. Environmental liability is recommended for any manufacturer handling chemicals or operating on former industrial sites.

Question 2

How much does product liability cost for MI auto suppliers?

Accepted Answer

Product liability insurance for Michigan auto suppliers typically costs $5,000–$25,000/year for $2M in coverage. Pricing depends on annual revenue, product type, quality certifications (IATF 16949), and claims history. Tier-1 suppliers to major OEMs often need $5M–$10M in coverage, which can cost $15,000–$50,000/year. RISKX works with specialty carriers that understand auto supply chain risk.

Question 3

Why is Michigan commercial auto insurance so expensive?

Accepted Answer

Michigan has the most expensive commercial auto insurance in the nation due to its unique no-fault system with unlimited personal injury protection (PIP) benefits. A single serious accident can generate millions in lifetime medical costs. Manufacturing fleets with 10+ vehicles typically pay $3,000–$8,000 per vehicle/year. Recent reforms (2019 No-Fault Reform) allow drivers to choose lower PIP limits, which has started reducing premiums.

Michigan Manufacturing Insurance | RISKX