Does Michigan require Workers’ Compensation Insurance?
Michigan requires Workers’ Compensation Insurance for businesses that have employed three or more workers at any time. Additionally, suppose a company has regularly employed at least one employee for 35 hours or more per week for 13 weeks or longer in the preceding 52 weeks. In that case, you will need Workers’ Compensation Insurance. For businesses that cannot obtain coverage from private insurers, the Michigan Workers Compensation Placement Facility provides insurance. The Facility operates as a state-mandated pool, covering new employers and those with difficulty obtaining coverage due to hazardous occupations, accidents, or adverse loss history.
How Much Does Michigan Workers Comp cost?
The cost of Workers’ Compensation Insurance in Michigan can vary depending on several factors. For a small business owner with a few employees, the annual premiums can range from $1,500 to $3,500. However, the cost is usually around $700 for businesses with no employees and the owners excluded. The cost is influenced by factors such as the type of business, the employee’s job functions, the amount of payroll, and the location of the business.
Michigan Workers Compensation Placement Facility provides coverage when you can’t get insurance through a regular carrier. They can provide insurance for people who would be ineligible or riskier for private insurers. Rates for many businesses may be higher than rates for comparable coverage with private insurers.
The Facility uses private insurers as servicing carriers for its business. Each carrier uses the Facility’s eligibility and rates to underwrite Facility policies. The policies will contain the servicing carrier’s name and logo. Thus, most of the policyholder’s coverage is with one of the top Insurance Carriers. If you need workers’ compensation insurance and can’t get it from a private insurer, call 248-888-1134.
When does Michigan not require worker’s compensation insurance?
Michigan does not require Workers’ Compensation Insurance If all the employees are partners or owners of a small corporation. In such cases, a certificate of exemption can be obtained from the Michigan Workers’ Comp Agency by completing form WC-337 , which is available from the Compliance & Employer Records Division. Contact the Compliance & Employer Records Division at 517-284-8922 with questions regarding whether you are eligible for a worker’s compensation exemption.
Who needs Michigan Workers Comp Insurance?
If you operate your business as a sole proprietor, you do not have to carry workers’ comp on yourself. As indicated above, you will need coverage for your employees if required. You can exclude a sole proprietor’s spouse, children, and parents. Click the link for information on how to file a Michigan Workers’ compensation claim.
What are the Penalties if you do not carry Michigan Worker’s Compensation
- First, if a worker gets injured on the job, they may sue the employer for civil damages. If the employer were at fault for the injury, the company would be liable for the payment.
- The Bureau of Workers’ Disability Compensation enforces the Worker’s Disability Compensation Act. They can go to court and seek an order prohibiting the company from employing any persons in their business until the company buys coverage.
- Finally, the employer may be subject to a fine of $1,000 or imprisonment for not less than 30 days, more than six months, or both. Each day for which the employer is uninsured is considered a separate offense.
How to get a Michigan Workers Comp policy
Suppose you need a Michigan Workers’ Compensation policy. In that case, businesses need to complete the information on the type of coverage required by clicking the MI workers comp quote button. It’s important to note that you must purchase a policy from a licensed Michigan agent, which cannot be bought directly from the Facility. The Facility is not associated with Michigan Basic, the government-backed homeowner’s insurance.
