5 Insurance Gaps Michigan Business Owners Overlook Until It’s Too Late

Running a business in Michigan isn’t easy. Whether you’re managing a storefront in Flint or overseeing a farm in Frankenmuth, you’ve got enough on your plate. And while most business owners know they need insurance, many are surprised to find out too late that what they have isn’t enough.

At Tom Gotham Agency, we work with Michigan businesses every day—and we’ve seen firsthand how a small gap in coverage can lead to big problems. Here are five of the most common insurance gaps we help business owners avoid:

1. Business Interruption Coverage

Imagine a fire, flood, or power outage that forces you to shut down for a week—or more. Will your insurance cover your lost income during that time?

Most basic policies don’t.

Business interruption coverage helps you pay the bills, cover payroll, and keep operations afloat while your business recovers. It’s often the difference between a temporary pause and permanent closure.

2. Cyber Liability

If you store customer data—emails, credit cards, or even appointments—you’re a cyber target. Many small business owners think hackers only go after big companies, but the opposite is true: smaller, unprotected businesses are low-hanging fruit.

Cyber liability coverage protects you if you experience a data breach, covering everything from legal costs to reputation management.

3. Equipment Breakdown

Standard property insurance may cover fire or storm damage—but what about a mechanical breakdown?

If your heating system, fridge, or POS system fails, you could lose revenue and customers. Equipment breakdown insurance steps in where most policies fall short, helping you recover quickly and avoid major downtime.

4. Professional Liability (a.k.a. Errors & Omissions)

Do you offer advice, consulting, or services to clients? If so, you’re exposed to liability claims—even if you didn’t do anything wrong.

Professional liability coverage protects you if a client says your service caused them financial harm. It’s especially critical for realtors, consultants, contractors, and financial professionals.

5. Umbrella Liability Coverage

No matter how thorough your policy is, accidents happen. Umbrella insurance gives you extra protection beyond your regular liability limits.

For example, if a customer slips in your store and sues for $1 million but your policy only covers $500,000, an umbrella policy helps fill the gap—without draining your business savings.

Don’t Wait Until It’s Too Late

Insurance isn’t about checking a box. It’s about protecting everything you’ve built. At Tom Gotham Agency, we offer free policy audits to identify gaps before they become costly.

Our mission is simple: to protect, educate, and support Michigan businesses like yours—with personalized coverage that fits your operation and your budget. Let’s safeguard your business, together.