What Is Workers’ Compensation Insurance in Michigan?
✅ What Does Workers’ Compensation Cover?
When an employee sustains an injury at work or contracts a work-related illness, workers’ compensation provides coverage for the following expenses:
- 🏥 Medical expenses – Hospital bills, physical therapy, prescriptions
- 💼 Lost wages—a portion of pay while the employee recovers
- 🛡️ Disability benefits – For permanent or partial disability
- ⚖️ Legal protection – Reduces employer liability in lawsuits
These benefits apply even if the injury was accidental or occurred over time (like repetitive stress injuries).
👩🏭 Who Needs Workers’ Comp Insurance in Michigan?
According to the Michigan Workers’ Disability Compensation Act, most businesses with employees are required to carry coverage. This includes full-time, part-time, and even seasonal workers under certain conditions.
🤔 Why Is Workers’ Comp So Important?
Without it, injured workers may face out-of-pocket expenses and lost wages, and employers may face lawsuits, fines, or even criminal charges. Workers’ comp safeguards both parties and provides financial support for workplace safety.
📍 Michigan’s Safety Net: The Placement Facility
If you’re a new or high-risk business and can’t get private coverage, you may qualify for the Workers’ Compensation Placement Facility, Michigan’s insurer of last resort. Coverage is obtained through licensed agents, not directly.
📝 Final Thought
Workers’ comp isn’t just a compliance box to check; it’s peace of mind for your team and your business. Understanding how it works helps you stay compliant, reduce risk, and support your employees when they need it most.