When Michigan requires Workers Compensation Insurance
Michigan requires Workers Compensation for businesses that have employed three or more employees at any one time. You may also need it 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.
The Michigan Workers Compensation Placement Facility is a non-profit, non-governmental association formed by the Legislature in 1982. The Facility provides insurance to Michigan businesses that cannot obtain coverage from private insurers. A company that is eligible for coverage with private insurers can also purchase 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 adverse 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 issues policies containing its servicing carrier name and logo. Thus, most of the policyholder’s coverage is placed with one of the top Insurance Carriers. If you need workers compensation insurance and can’t get it from a private insurer, you can contact a Michigan Insurance Agent or call 248-888-1134.
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 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. You will need to have coverage for your employees if required, as indicated above. You can also exclude the spouse, children, and parents of a sole proprietor. Click the link if you need to know how to file a Michigan Workers compensation claim.
How to get a Michigan Workers Comp policy:
Michigan corporation may need to carry Michigan Worker’s compensation even if they do not have employees. Click Get workers comp quote to fill out the information on the type of coverage you need. You must purchase a policy from a licensed Michigan agent and cannot buy directly from the facility. The Facility is not associated with Michigan Basic, which is the government-backed way to purchase Michigan homeowner’s insurance.