Michigan Workers Compensation Insurance

Yes, for almost every employer. Michigan law requires workers comp coverage for any private employer with one or more employees working 35+ hours per week for 13+ weeks per year, or three or more employees at any one time, full-time or part-time. Sole proprietors and partners can opt out, but their employees still need coverage.

Premium is calculated as a rate per $100 of payroll, multiplied by your experience modifier (Mod). Rates vary by job classification (an office worker is rated much lower than a roofer). New businesses start with a 1.0 Mod. As your claims history develops, your Mod adjusts up or down — making safety and claims management critical to long-term cost.

Medical care for work-related injuries and illnesses, wage replacement (typically 80% of after-tax wages, subject to state maximums), vocational rehabilitation, and survivor benefits if an employee dies from a work-related cause. It also protects you (the employer) from being sued by injured employees in most cases — the 'exclusive remedy' principle.

Sole proprietors and partners are typically excluded from workers comp by default in Michigan but can elect to include themselves. Corporate officers are usually included by default but can elect out. LLC member treatment depends on tax election. We help every business owner make the right choice for their situation.

Your experience modifier compares your claims history to similar businesses in your classification. A Mod above 1.0 means you have more claims than average (and pay more). Below 1.0 means fewer claims (and you pay less). The same business can pay double the premium of a competitor with the same payroll because of Mod differences — managing claims and safety actively pays off for years.