Key Takeaways
- Michigan uses modified comparative negligence with a 50% bar for fault allocation
- Commercial general liability policies use file and use rate regulation
- Michigan has specific pollution liability requirements and disclosures
- Professional liability is required for certain licensed professions
- Joint and several liability applies in limited circumstances
Michigan General Liability Insurance
Michigan has specific requirements for general liability insurance that agents must understand.
Modified Comparative Negligence
Michigan uses modified comparative negligence with a 50% bar:
How It Works
- Fault is allocated among all parties
- Damages reduced by percentage of fault
- 50% Bar: If 50% or more at fault, NO recovery
- Different from states with 51% bar
Example
| Driver A Fault | Driver B Fault | Driver A Recovery |
|---|---|---|
| 40% | 60% | 60% of damages |
| 49% | 51% | 51% of damages |
| 50% | 50% | NOTHING |
| 60% | 40% | NOTHING |
Exam Tip: Michigan's 50% bar means you recover nothing if you are 50% OR MORE at fault. Some states use 51%.
Joint and Several Liability
Michigan has modified joint and several liability:
Current Rules
| Defendant Fault | Liability Rule |
|---|---|
| Economic damages | Joint and several |
| Non-economic damages | Several only (proportionate) |
What This Means
- Economic damages (medical bills, lost wages): Full recovery from any defendant
- Non-economic damages (pain and suffering): Only proportionate share
Commercial General Liability (CGL)
Michigan CGL policies must comply with state requirements:
Required Elements
- Occurrence vs. claims-made coverage clearly disclosed
- Coverage territory defined
- Limits per occurrence and aggregate
- Defense costs—duty to defend
- Pollution exclusion with disclosure
Professional Liability
Michigan requires or regulates professional liability for various professions:
State-Mandated Coverage
| Profession | Requirement |
|---|---|
| Attorneys | Disclosure if no coverage |
| Architects | E&O typically required |
| Engineers | E&O typically required |
| Healthcare Providers | Medical malpractice required |
| Insurance Agents | Recommended but not mandatory |
Medical Malpractice
Michigan has specific medical malpractice provisions:
- Certificate of merit required for lawsuits
- Caps on non-economic damages
- Affidavit of merit required
- Pre-suit notice requirements
Pollution Liability
Michigan has environmental liability requirements:
Disclosure Requirements
- Pollution exclusion must be explained
- Environmental impairment liability options
- Underground storage tank requirements
- LUST (Leaking Underground Storage Tank) coverage
Michigan Environmental Laws
- Michigan NREPA (Natural Resources and Environmental Protection Act)
- Department of Environment, Great Lakes, and Energy (EGLE) oversight
- Cleanup liability requirements
- Strict liability for certain activities
Products Liability
Michigan products liability insurance:
Coverage
- Bodily injury from defective products
- Property damage from defective products
- Products-completed operations hazard
- Aggregate limits apply
Michigan Law
- Negligence and strict liability theories
- Economic loss doctrine limits recovery
- Statute of limitations: 3 years
- Statute of repose applies
Under Michigan's modified comparative negligence rule, what happens if a plaintiff is 50% at fault?
How does Michigan apply joint and several liability for non-economic damages?