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Michigan Workers' Compensation Insurance
Protect your business and employees with Michigan workers' comp
Recognizing the importance of your team's health is an important part of running a successful business. Michigan workers' compensation insurance offers essential financial and medical support for employees who suffer from work-related injuries or illnesses. It also helps you comply with state regulations.
Talk to a Progressive Commercial agent to learn more about workers' comp insurance in the Great Lakes State and get the coverage you need to protect your business.
Who needs workers' compensation insurance in Michigan?
According to Michigan workers' compensation requirements, insurance is needed for:
- Private employers with one employee working 35+ hours weekly for 13 weeks a year, or three or more employees at any time
- Agricultural employers with three employees working 35+ hours for 13 consecutive weeks
- Householders with domestic servants working 35+ hours weekly for 13 weeks a year
- All public employers
Michigan workers' compensation insurance exemptions
There are some exemptions to Michigan workers' comp rules, including:
- Agricultural employers, unless they have three employees working 35+ hours weekly for 13 consecutive weeks
- Domestic workers, like housekeepers
- Business partners and corporate officers
- Self-employed sole proprietors (their employees still need coverage)
- Family members working for a relative
- Independent contractors hired by a business
Choosing not to have workers' comp insurance in Michigan leaves your team unprotected from job-related injuries or illnesses. Even exempt businesses should consider coverage to prevent potential lawsuits.
What are the penalties for not having workers' comp in Michigan?
There are significant penalties for not having Michigan workers' comp insurance, including costly fines or jail time. Employees can also pursue legal action if they get hurt or become ill while working. Avoid these risks by consulting with a Progressive Commercial specialist for expert advice and guidance.
How much does workers' comp cost in Michigan?
Several factors determine the cost of workers' compensation in Michigan, including:
- Job classification code: The National Council on Compensation Insurance (NCCI) categorizes jobs with class codes to determine insurance rates by risk level.
- Payroll: Workers' comp rates are based on every $100 of payroll, so a higher payroll can increase your policy cost.
- Claims history: What you pay for workers' comp coverage depends on your claims history. More claims can mean increased premiums.
- Insurance carrier: Michigan workers' compensation insurance companies might set different rates depending on their risk assessments and pricing policies.
How can you get workers' comp in Michigan?
There are several ways to get workers' comp in Michigan, including:
- Private insurers: Many Michigan businesses choose to get workers' comp through private insurers, as they offer customizable coverage and additional benefits. Talk to a Progressive Commercial agent to explore your options.
- Self-insurance: You can apply for self-insurance through the Workers' Disability Compensation Agency. If approved, you could reduce premiums by covering claims with your own funds, but you'll be responsible for managing all financial risks and administrative tasks.
- Group self-insurance: Some industries offer group self-insurance trusts, allowing businesses to pool resources for coverage. This collaboration often means cost savings and shared risk management.
- Assigned risk pool: Businesses that are new, considered risky, or have a history of many claims often have a hard time securing coverage. In these cases, workers' comp is available through the Compensation Advisory Organization of Michigan.
Companies that wish to exclude themselves from workers' comp coverage have the option of filing an exclusion form with the Insurance Compliance Division in Michigan. Although this can help manage costs, it also exposes your business to unnecessary risks.
How does workers' comp work in Michigan?
Workers' comp insurance provides aid for employees facing job-related injuries or illnesses. Once an employee reports an incident, the employee or employer files a claim. If approved, the employee receives financial support. The duration depends on the severity of the case.
Michigan workers' compensation benefits cover medical expenses, lost wages, disability benefits, and rehabilitation costs. Coverage ensures employees receive necessary support and helps them get back to work. It also protects you from fines or lawsuits since employees who accept benefits typically can't take legal action.
Michigan workers' compensation death benefits
Michigan workers' comp offers death benefits to the family of a deceased employee, including:
- A lump-sum payment of up to $6,000 for funeral expenses
- Payments equaling 80% of the worker's average weekly wage for up to 500 weeks
- Payments to minor beneficiaries until age 21
Workers' compensation death benefits provide essential support to families during difficult times, offering financial assistance and peace of mind when it's needed most.
Michigan workers' compensation statute of limitations
Michigan workers' comp laws allow claims to be filed within two years from the date of injury. Encourage employees to report on-the-job accidents as soon as possible to meet the Michigan statute of limitations and protect their right to receive benefits.
Why choose Progressive Commercial for Michigan workers' comp
Progressive Commercial has been helping small businesses secure workers' comp coverage for over 50 years. We offer exceptional service, competitive pricing, and expert guidance you can rely on.
Call us to talk to an agent or start a quote online.
