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Michigan Workers' Compensation Insurance
Protecting Your Business and Your Employees
Workers’ Compensation Insurance is required for most Michigan businesses to comply with state law and protect employees and your company in the event of workplace injuries. In Michigan, most workers are covered by workers’ compensation insurance, regardless of industry. Whether you operate a contracting business, retail store, medical office, restaurant, manufacturing operation, or professional services firm in Howell, Brighton, Birmingham, Bloomfield Hills, Clarkston, Farmington, Farmington Hills, Fenton, Northville, Novi, Rochester, Rochester Hills, Royal Oak, South Lyon, Troy, or Wixom, Workers’ Compensation Insurance keeps your business compliant with Michigan requirements and protects your employees.
One Source Insurance helps Michigan employers secure cost-effective Workers’ Compensation coverage that meets state law requirements and fits your industry’s risk level.
What Workers’ Compensation Insurance Covers
Workers’ Compensation provides workers’ compensation benefits to eligible injured workers who are covered under Michigan law when an employee is injured or becomes ill due to their work. These benefits include medical benefits, which are provided from the first day of injury. Only covered injuries and workers are eligible for these benefits.
Medical Expenses
Covers all necessary medical treatment, including:
- Emergency room visits
- Surgeries
- Medication
- Physical therapy
- Ongoing rehabilitation
Workers’ compensation insurance in Michigan covers medical bills for treatment by an authorized doctor. The insurance company is responsible for authorizing and paying for medical care related to workplace injuries.
Disability Benefits
Covers temporary or permanent disability resulting from a work-related injury or illness. Eligibility for disability benefits and the amount received are determined by several factors, including the worker’s skills, prior wages, and the severity of the injury.
Lost Wages
Provides partial wage replacement while an injured employee is unable to work. In Michigan, these are called wage-loss benefits and are typically paid weekly. There is a 7-day waiting period before wage-loss benefits begin; employees are not paid for the first 7 days of disability unless their absence extends beyond 14 days, in which case they can receive pay for the first 7 days as well. Wage-loss benefits begin on the eighth day of disability, providing ongoing financial support for injured workers.
Death Benefits
Provides financial support to dependents in the event of a fatal workplace accident. Dependents may need to prove their relationship to the deceased worker to qualify for benefits. Death benefits are calculated from the date of the fatal injury and may be paid as a lump sum or in weekly installments.
Legal Protection for Your Business
Workers’ Comp protects your business from lawsuits related to workplace injuries. If there is a dispute over a claim, it may be resolved through a hearing or in court.
What Workers’ Compensation Insurance Covers
Workers’ Compensation provides workers’ compensation benefits to eligible injured workers who are covered under Michigan law when an employee is injured or becomes ill due to their work. These benefits include medical benefits, which are provided from the first day of injury. Only covered injuries and workers are eligible for these benefits.
Medical Expenses
Covers all necessary medical treatment, including:
- Emergency room visits
- Surgeries
- Medication
- Physical therapy
- Ongoing rehabilitation
Workers’ compensation insurance in Michigan covers medical bills for treatment by an authorized doctor. The insurance company is responsible for authorizing and paying for medical care related to workplace injuries.
Lost Wages
Provides partial wage replacement while an injured employee is unable to work. In Michigan, these are called wage-loss benefits and are typically paid weekly. There is a 7-day waiting period before wage-loss benefits begin; employees are not paid for the first 7 days of disability unless their absence extends beyond 14 days, in which case they can receive pay for the first 7 days as well. Wage-loss benefits begin on the eighth day of disability, providing ongoing financial support for injured workers.
Disability Benefits
Covers temporary or permanent disability resulting from a work-related injury or illness. Eligibility for disability benefits and the amount received are determined by several factors, including the worker’s skills, prior wages, and the severity of the injury.
Death Benefits
Provides financial support to dependents in the event of a fatal workplace accident. Dependents may need to prove their relationship to the deceased worker to qualify for benefits. Death benefits are calculated from the date of the fatal injury and may be paid as a lump sum or in weekly installments.
Legal Protection for Your Business
Workers’ Comp protects your business from lawsuits related to workplace injuries. If there is a dispute over a claim, it may be resolved through a hearing or in court.
Michigan Workers’ Compensation Requirements
In Michigan, a business must carry Workers’ Compensation Insurance if:
- You have one or more employees working 35 hours or more per week, OR
- You employ three or more employees at any time (regardless of hours worked), OR
- You are a contractor with one or more employees working on your behalf.
Most private employers—including corporations, partnerships, and sole proprietors with employees—must follow Michigan’s workers’ compensation regulations. Coverage may also be required for part-time, seasonal, and temporary employees.
Some industry or employment exceptions apply. Generally, private employers with three or more employees must carry Workers’ Compensation coverage. Most Michigan businesses are legally obligated to comply. Failure can result in severe penalties, including fines and personal liability for injuries.
Industries With High Workers’ Comp Exposure in Michigan
Michigan has a number of industries with a higher risk of workplace accidents and injuries, requiring them to carry sufficient Workers’ Compensation insurance. The following are some of the most common industries facing increased risk of workplace injury in Michigan:
- Construction & Trades- HVAC, Plumbing, Electrical, Roofing, Landscaping
- Manufacturing & Warehousing
- Restaurants & Hospitality
- Healthcare & Assisted Living
- Retail and Grocery Stores
- Delivery & Transportation
- Cleaning Services
- Auto Repair & Body Shops
Workers’ comp coverage is required for most jobs and worker classifications in these industries, ensuring that each worker is protected in the event of a job-related injury.
Even office-based businesses such as marketing firms, real estate brokerages, medical practices, and professional service companies require Workers’ Comp if they have qualifying employees.
Even office-based businesses such as marketing firms, real estate brokerages, medical practices, and professional service companies require Workers’ Comp if they have qualifying employees.
What Workers’ Compensation Does NOT Cover
Workers’ Comp does not cover:
- Independent contractors (unless misclassified)
- Workplace injuries resulting from intoxication
- Intentional injuries
- Professional liability claims
- Damage to business property
- Employee lawsuits unrelated to injuries (EPLI handles these)
Only workers classified as covered under Michigan law, and injuries arising from their employment, are eligible for workers’ compensation insurance. Exceptions exist, such as cases involving pre-existing conditions not caused by work or illnesses unrelated to employment. If unsure about coverage of a worker, injury, or illness, consult the exceptions set out in Michigan law.
We can help you verify employee classifications to avoid misclassification penalties.
We can help you verify employee classifications to avoid misclassification penalties.
How Much Does Workers’ Compensation Cost in Michigan?
Several factors determine the cost of workers’ comp insurance in Michigan. These include your industry, risk classification, payroll, claims history, safety programs, experience modification factor (MOD), and the number of employees. These factors influence the premiums you pay for coverage.
Workers’ comp insurance helps pay for medical expenses and wage loss benefits if an employee is injured or becomes ill due to work-related activities.
Workers’ Compensation premiums are based on:
Workers’ comp insurance helps pay for medical expenses and wage loss benefits if an employee is injured or becomes ill due to work-related activities.
Workers’ Compensation premiums are based on:
- Your industry and risk classification
- Payroll amounts
- Claims history
- Safety programs
- Experience modification factor (MOD)
- Number of employees
Typical Michigan premiums range from:
Low-risk industries: $0.30 – $0.90 per $100 of payroll
Higher-risk industries (contractors, manufacturing): $4.00 – $12.00+ per $100 of payroll
We work with multiple carriers to find the most competitive rates for your business.
Low-risk industries: $0.30 – $0.90 per $100 of payroll
Higher-risk industries (contractors, manufacturing): $4.00 – $12.00+ per $100 of payroll
We work with multiple carriers to find the most competitive rates for your business.
How Claims and Support Work
If an employee is injured:
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The injury is reported.
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Injured workers must file a claim using the appropriate form with the relevant agency. Timely filing ensures access to benefits. Filing quickly also helps injured workers recover more quickly.
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The agency oversees the workers' compensation claim process, manages the forms and filings, and resolves disputes if they arise.
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The insurance carrier handles medical care authorization.
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Treatment and benefit payments are managed by claims adjusters.
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We keep your organization informed of progress throughout this process.
We help you through all steps to comply with Michigan law while minimizing your MOD score’s impact on the compliance.
Additional Coverage Options for Better Protection
Many Michigan businesses pair Workers’ Comp with:
General Liability Insurance
Protects against non-employee injuries and property damage claims.
Commercial Property Insurance
Covers business assets like buildings, equipment, and inventory.
Employment Practices Liability (EPLI)
Covers wrongful termination, discrimination, and harassment claims.
Commercial Umbrella Insurance
Adds an additional layer of liability protection. Combining policies often reduces overall premium costs.
Service Areas
We proudly serve employers throughout Southeast Michigan, including:
- Howell, MI
- Brighton, MI
- Birmingham, MI
- Bloomfield Hills, MI
- Clarkston, MI
- Farmington, MI
- Farmington Hills, MI
- Fenton, MI
- Northville, MI
- Novi, MI
- Rochester, MI
- Rochester Hills, MI
- Royal Oak, MI
- South Lyon, MI
- Troy, MI
- Wixom, MI
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Disclaimer- Insurance coverage cannot be bound or changed via submission of any online form/application provided on this site or otherwise. No binder, insurance policy, change, addition, and/or deletion to insurance coverage goes into effect unless and until confirmed directly by a licensed agent.
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Protect your employees, stay compliant, and reduce your business’s risk exposure. Contact One Source Insurance today to compare Workers’ Compensation options from top Michigan carriers and get coverage tailored to your industry.