Last Updated on September 1, 2025 by The Insurance Pros
Does Michigan Require Workers’ Compensation Insurance? 🏢
If you operate a business in Michigan, you may be legally required to carry workers’ compensation insurance. This policy protects your employees in case of work-related injuries and shields your business from costly lawsuits.
✅ Who Must Have Workers’ Compensation Insurance in Michigan?
You must provide coverage if:
- You have three or more employees at any time, or
- You employed one person for 35 hours/week for 13 weeks or longer over the past year.
Even part-time or seasonal employees may qualify your business for this requirement.
📞 Can’t Find Coverage Through a Private Carrier?
- Premiums may be higher than private insurance
- Serviced by top carriers under Facility guidelines
- Coverage appears under the servicing carrier’s name
Tip: You can’t apply directly to the facility. You must go through a licensed Michigan agent.
💵 How Much Does Workers’ Comp Cost in Michigan?
Costs vary based on:
- Your business type and industry
- Payroll amount
- Employee job duties
- Location and claims history
| Business Type | Estimated Annual Cost |
|---|---|
| Owner only (no employees) | ~$700 |
| Small business (few staff) | $1,500–$3,500+ |
❌ When Are Small Businesses Exempt from Michigan Workers’ Comp?
You may be exempt if:
- All workers are owners, officers, or partners
- Your business has no qualifying employees
- You operate as a sole proprietor and choose to exclude family members
To formalize the exemption, file Form WC-337 with the Michigan Workers’ Comp Agency.
Contact: Compliance & Employer Records Division at 517-284-8922
⚠️ Penalties for Not Having Workers’ Comp Insurance
- You may be sued in civil court for job injuries
- The state can prohibit you from employing anyone
- You may be fined $1,000 per day
- You can face 30 days to 6 months in jail per uninsured day
Each uninsured day is a separate offense.
🧾 How to Get a Michigan Workers’ Compensation Policy
You can’t buy workers’ comp directly from the facility. Instead:
- Contact a licensed Michigan agent
- Request a quote based on your business and payroll
- Complete the application for private or Facility coverage
📋 Get a Workers’ Comp Quote in Michigan
🔗 Outbound Resource
Michigan Workers’ Disability Compensation Agency – Forms, exemptions, and compliance FAQs
📣 Final Thought
If you’re unsure about your legal responsibilities, don’t risk fines or lawsuits. Speak with a licensed Michigan agent today to ensure your business is protected.
