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Demolition Contractors Insurance Requirements in Michigan

What Michigan property managers should require from demolition contractors vendors

GL Minimum: $1,000,000/$2,000,000MI override
Workers Comp: Required

If you manage properties in Michigan and hire demolition contractors contractors, verifying their insurance coverage is not optional. Michigan law requires workers compensation for employers with 3+ employees or 1 full-time employee for 13+ weeks, and commercial property owners are expected to verify adequate general liability coverage before allowing any contractor on site.

Michigan-Specific Note

Michigan's Detroit blight removal program has created massive demolition demand with complex environmental requirements. Industrial legacy means frequent asbestos and contamination encounters. EGLE (formerly MDEQ) actively regulates asbestos notification for demolition.

Demolition Contractors Insurance Requirements in Michigan

Coverage TypeRecommended Minimum
General Liability
$1,000,000 / $2,000,000
Workers Compensation
Required (3+ employees or 1 full-time employee for 13+ weeks)
Commercial General Liability
$2,000,000 / $4,000,000
Workers' Compensation
Statutory limits
Pollution / Environmental Liability
$1,000,000
Umbrella / Excess Liability
$2,000,000
Inland Marine / Equipment
$250,000

Michigan-Specific Risks for Demolition Contractors

Detroit blight demolition — environmental contamination
Asbestos in older industrial buildings
Underground storage tanks at former gas stations
Lead paint in residential demolitions

Required Endorsements in Michigan

National Guide

Demolition Contractors Insurance Requirements

State Guide

Michigan Insurance Requirements

Frequently Asked Questions

What environmental insurance do I need for demolition of older buildings?▼
For any building constructed before 1978, assume asbestos and lead paint are present until a pre-demolition environmental survey proves otherwise. Require the demolition contractor to carry at least $1M in pollution/environmental liability covering asbestos, lead, and other hazardous material exposure. The survey should be performed by an independent environmental consultant, not the demolition contractor.
How do I protect against damage to adjacent properties during demolition?▼
Require the demolition contractor's GL policy to specifically cover damage to adjacent structures from vibration, debris, and equipment operations. Consider requiring a pre-demolition condition survey of adjacent properties to establish a baseline. Notify adjacent property owners in writing before demolition begins and require the contractor to maintain dust and debris containment measures throughout the project.
What should I look for in a demolition contractor's safety program?▼
Request a site-specific safety plan that addresses structural assessment, hazardous material handling, equipment operation, public protection, and emergency response. Verify the contractor's EMR is at or below 1.0, indicating an average or better safety record. Check their OSHA citation history and request their most recent three years of loss runs from their insurance carrier.
Is interior demolition less risky than structural demolition?▼
Interior demolition carries lower risk of structural collapse but still presents significant hazards including asbestos and lead exposure, electrical and plumbing hazards from live utilities, and dust and noise in occupied buildings. The GL requirements may be somewhat lower ($1M/$2M for minor interior demo) but workers' compensation and pollution liability requirements remain the same. Always require a hazardous materials survey before any interior demolition.
Do demolition contractors in Michigan need a license?▼
No state demolition license. Local municipalities require demolition permits. MDEQ/EGLE notification required for asbestos. Detroit has specific demolition contractor requirements due to blight removal programs.
What happens if my demolition contractors's insurance expires in Michigan?▼
In Michigan, you as the property manager could be held liable for injuries or damages caused by an uninsured demolition contractors on your property. Michigan courts have consistently ruled that property owners have a duty to verify contractor insurance before allowing work to begin.

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