Last Updated on June 15, 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.
📞 How should you proceed if you are unable to secure coverage from private carriers?
Michigan offers the Workers’ Compensation Placement Facility, a state-mandated insurer of last resort. It helps high-risk or new businesses obtain required coverage.
- Premiums may be higher than private insurance
- Serviced by top carriers but under the Facility’s guidelines
- Coverage appears under the name of the servicing carrier, not Michigan Basic
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 You 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: 517-284-8922
⚠️ Penalties for Not Having Workers’ Comp Insurance in Michigan
- 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 day uninsured
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 process for either private or Facility coverage
Do you require assistance immediately? Call 248‑888‑1134 or request your quote online.
🔗 Outbound Resource
Michigan Workers’ Disability Compensation Agency: Forms, exemptions, and compliance FAQs
📣 Call to Action
If you’re unsure about your legal responsibilities, don’t risk fines or lawsuits. Please consider obtaining a quote from a licensed Michigan agent to ensure your protection.
