Does Michigan require Workers’ Compensation Insurance? 

Michigan requires Workers’ Compensation for businesses that have employed three or more employees at any 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 eligible for coverage with private insurers can also purchase coverage with the Facility.

Michigan Workers Compensation Placement Facility is a state-mandated pool where all workers’ compensation carriers in the state share the risk. This pool covers new employers and includes employers with difficulty obtaining coverage due to hazardous occupations, accidents, or adverse loss history.

How Much Does Michigan Workers Comp cost?

A small business owner with a few employees can expect to pay around $1,500 to $3,500 in Workers’ Compensation Insurance premiums annually. Usually, $700 with no employees and the owners excluded.  The cost will vary depending on the type of business, the employee’s job functions, the amount of payroll, and the location.

Michigan Workers Compensation Placement FacilityMichigan 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 248-277-4505.

When does Michigan not require worker’s compensation insurance? 

Michigan does not require workers’ compensation 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 517-284-8922 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 also 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 nor 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

Michigan corporations may need to carry Michigan Worker’s compensation even if they do not have employees. Click the MI workers comp quote button to complete 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, the government-backed homeowner’s insurance.