Workers Compensation Insurance In Michigan
Michigan Workers Compensation is required for businesses if you have employed three or more workers at any one time, or if during the preceding 52 weeks you have regularly employed at least one employee for 35 hours or more per week for 13 weeks or longer. For all businesses that employ’s workers.
The Michigan Workers Compensation Placement Facility is a non-profit, non-governmental association formed by the Legislature in 1982. The Facility provides workers compensation insurance to Michigan businesses that cannot obtain coverage from private insurers. A business that is eligible for coverage with private insurers can also obtain coverage with the Facility.
Michigan Workers Compensation Placement Facility is a state-mandated pool in which all workers’ compensation carriers in the state share the risk. This pool covers new employers and also includes employers who have difficulty obtaining coverage due to hazardous occupations, a history of accidents, or bad loss history.
Michigan Workers Compensation Placement Facility insures a higher percentage of people who would be ineligible or riskier for private insurers so its rates for many businesses may be higher than rates for comparable coverage with a private insurer.
It uses private insurers as servicing carriers for its business. Each carrier uses the Facility’s eligibility and rates to underwrite Facility policies, but each carrier issues policies containing its respective servicing carrier name and logo. Thus, most policyholders coverage is underwritten by one of the top Servicing carriers. If you need workers compensation insurance and can’t get it from a private insurer you should contact a Michigan Workers Compensation Agent.
When is Michigan workers compensation insurance not required?
If all the employees are partners or owners of a small corporation, you can obtain a certificate of exemption from the Michigan Workers’ Comp Agency. This form WC-337 is available from the Compliance & Employer Records Division. In some instances, the Bureau of Workers’ Compensation, a state agency, may allow a business to file form WC-337 (Exemption). It is not available online. Contact the Compliance & Employer Records Division at 517-322-1195 with questions regarding whether you are eligible for a workers compensation exemption.
Who needs Michigan Workers Compensation Insurance?
If you operate your business as a sole proprietor, you do not have to carry workers’ comp on yourself, but you would need to have coverage for your employees if required as indicated above. You can exclude the spouse, children, and parents of a sole proprietor.
Purchase a Michigan Workers Compensation policy:
If you are a Michigan corporation you may be required to carry Michigan Workers compensation even if you do not have any employees. Click www.michiganworkerscompagent.com to contact an agent and start an application. All policies must be purchased from a licensed Michigan agent and cannot be purchased directly from the facility.
Finally, Michigan Workers Comp Facility is not affiliated with Michigan Basic. Michigan Basic provides insurance for homeowners who can’t get insurance. Click the highlighted link to get more information on Michigan Basic insurance.
This site is not affiliated with the Michigan Workers Comp Placement Facility.