Michigan Workers Compensation Insurance: Quotes From $25/mo

As a business owner in Michigan, it’s crucial to prioritize the well-being of your employees by understanding the importance of workers compensation insurance. This insurance coverage is designed to protect both your business and your employees in the event of work-related injuries or illnesses. With Michigan workers compensation insurance, you can ensure that your employees receive necessary medical treatment and compensation while safeguarding your business from potential lawsuits.

What is Workers Compensation Insurance?

Workers compensation insurance is a crucial safeguard for employees and employers in Michigan. This insurance coverage provides vital support through medical benefits and wage replacement for workers who suffer work-related injuries or illnesses.

Workers comp insurance Michigan ensures injured employees receive the necessary medical care and financial compensation they need to recover. It is a safety net, offering protection and support during challenging times.

By meeting Michigan workers compensation requirements, businesses obtain crucial legal protection, including coverage for employees working from home, guarding against costly lawsuits from workplace accidents or illnesses and alleviating financial burdens and legal liabilities. This insurance ensures comprehensive protection for employers and employees, whether on-site or remotely, fostering a safe and secure work environment.


When Do You Need to Get Workers Compensation Insurance in Michigan?

Michigan workers compensation insurance requirements stipulate that businesses in the state must comply with certain regulations. Michigan employers must obtain workers compensation insurance coverage if they have one or more employees. These requirements apply regardless of the employee’s work hours or employment status, whether they are full-time, part-time, temporary, or seasonal workers.

It is important to note that Michigan’s workers compensation laws also consider subcontractors and independent contractors as employees in certain situations. As a result, businesses should carefully assess their employment relationships and refer to the state’s workers compensation guidelines to ensure they meet the necessary criteria.


What Government Agency Oversees Workers Compensation in Michigan?

The Michigan Workers Compensation Commission, as the governing body responsible for administering the state’s workers’ compensation program, plays a pivotal role in upholding Michigan workers compensation law. This law establishes employees’ and employers’ rights and obligations regarding workers’ compensation insurance.

Under Michigan workers compensation law, employers must provide workers’ compensation insurance coverage. This ensures that employees are protected in case of work-related injuries or illnesses. The law specifies the benefits and compensation employees are entitled to, including medical treatment, rehabilitation, and wage replacement during their recovery period.

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Which Businesses Are Exempt from Getting Workers Compensation Insurance in Michigan?

When it comes to workman’s comp in Michigan, certain businesses may be exempt from the requirement of carrying workers’ compensation insurance. While it is important to refer to the guidelines provided by the Michigan Workers Compensation Commission for precise information, here are five types of businesses in Michigan that could potentially be exempt from workman’s comp coverage:

  • Sole Proprietors: Some sole proprietors with no employees might be exempt from obtaining workman’s comp insurance in Michigan. However, it is crucial to verify this exemption with the relevant agency.

  • Family-Owned Businesses: In certain cases, family-owned businesses that solely employ family members may be exempt from carrying workman’s comp coverage. This exemption typically applies when all employees are related by blood or marriage to the business owner.

  • Agricultural Operations: Certain agricultural operations, such as family farms or small-scale farming activities, may be exempt from Michigan’s workman’s comp insurance requirement. However, it is important to consult the agency to understand the specific criteria for exemption.

  • Independent Contractors: Businesses that hire independent contractors rather than employees may not be required to provide workman’s comp insurance for those contractors. However, it is crucial to ensure that the workers meet the legal definition of an independent contractor and that proper contracts are in place.

  • Real Estate Agents and Brokers: In Michigan, agents and brokers who operate as independent contractors and are compensated solely by the commission may be exempt from workman’s comp insurance. However, it is essential to consult the relevant agency for detailed information regarding this exemption.

It’s crucial to consult the commission’s guidelines and resources to understand the specific exemptions and requirements for workmen’s compensation in Michigan. These exemptions can be complex, so businesses need to refer to the official information provided by the agency.


How Much Money Does Michigan’s Workers Compensation Insurance Give?

Workers compensation insurance in Michigan, governed by workers comp laws, provides various benefits to employees who have suffered work-related injuries or illnesses. The amount of money an employee can receive depends on the specific type and severity of their disability. Here are the exact amounts for the different types of benefits:

  • Temporary Partial Disability Benefits: Employees with a temporary partial disability who can still perform some work at reduced capacity may receive benefits equal to 80% of the difference between their pre-injury average weekly wage and their post-injury wage-earning capacity. These benefits aim to compensate for the temporary loss of income during the recovery period.

  • Temporary Total Disability Benefits: Workmans comp in Michigan provides temporary total disability benefits to individuals who cannot work due to work-related injuries or illnesses. These benefits offer eligible individuals 80% of their after-tax average weekly wage, providing crucial financial support during their recovery period and ensuring coverage for lost wages.

  • Permanent Partial Disability Benefits: For employees who experience permanent partial disability, which involves a permanent impairment but allows for some degree of work capability, benefits are determined based on a specific percentage assigned to the impairment rating. This percentage is multiplied by a predetermined number of weeks established by Michigan law. The resulting amount provides compensation for the long-term impact of the disability on the individual’s ability to work.

  • Permanent Total Disability Benefits: In Michigan, workers’ compensation for permanent total disability is provided at 80% of the employee’s after-tax average weekly wage. These benefits are intended to provide long-term financial support for employees who cannot engage in any gainful employment due to the severity of their injury or illness. However, it’s essential to be aware of the Michigan workers compensation waiting period that precedes the payment of permanent total disability benefits.

How Long Will an Employee Wait Before Receiving Benefits?

When it comes to workers’ compensation benefits in Michigan, the waiting period before receiving benefits is outlined in the Michigan Workers Compensation Manual. According to the manual, there is a seven-day waiting period, during which the employee must be unable to work due to a work-related injury or illness. Once this waiting period is satisfied, the employee becomes eligible to receive benefits.

However, it’s important to note that the waiting period is just the initial phase of the process. After the waiting period, an additional processing time is involved before the actual payment is deposited in the employee’s account or loaded onto their debit card. The specific timeframe for this processing can vary, but it typically takes about 7-10 days after the certification for the payment to be finalized and distributed.


Penalties for Not Getting Workers Compensation in Michigan

Workmans comp insurance is a crucial coverage that ensures the well-being of employees and protects employers in the state. This form of insurance provides essential benefits to workers who suffer job-related injuries or illnesses, offering financial support and medical assistance. Both employees and employers need to understand the significance of workmans comp Michigan . Below are some of the penalties for not getting workers compensation Michigan.

  • Civil Fines: In Michigan, failing to obtain the required workers compensation insurance, including self-insurance, can result in substantial civil fines. These fines, which may vary depending on the circumstances and the number of violations, are a strong incentive for employers to comply with the state’s workmans comp insurance requirements.

  • Legal Liabilities: Employers who do not provide workmans comp insurance may become legally liable for work-related injuries or illnesses their employees suffer. This can result in costly legal battles and potential settlements or judgments against the employer.

  • Criminal Charges: In cases of intentional non-compliance or repeated violations, Michigan workers comp laws allow criminal charges to be filed against employers. This can lead to imprisonment and additional financial penalties if the employer is guilty.

  • Stop-Work Orders: The Michigan Workers Compensation Agency can issue stop-work orders to non-compliant employers. A stop-work order prohibits employers from continuing business operations until they obtain the required workmans comp insurance.

  • Loss of Business Licenses: Non-compliant employers may face the revocation or suspension of their business licenses, making it illegal to continue operating their business until they rectify the situation and obtain the necessary workmans comp coverage.

Employers in Michigan need to understand and comply with the state’s workmans comp laws to avoid these penalties. By providing the required insurance coverage, employers can protect their employees, ensure compliance with the law, and mitigate the risk of severe legal and financial consequences.


What is Michigan Assigned Risk Workers Compensation?

Michigan Assigned Risk Workers Compensation is a program provided by the State of Michigan Workers’ Compensation Placement Facility (MWCPF) to ensure that all employers can obtain the required state of Michigan workers comp. Employers can register through the Online Assigned Risk (OAR) website, create an application, and submit it for review by the MWCPF. Feedback on the application is typically provided within two business days. This program enables employers unable to secure coverage through the voluntary market to meet their legal obligations and obtain the necessary workers’ compensation coverage.

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Michigan Workers Compensation Insurance Cost

The cost of workers compensation insurance in Michigan varies depending on factors specific to each business. However, based on research, the average rate for workers’ compensation insurance in Michigan is approximately $44 per month or $528 per year. Below are factors to consider:

  • Nature of the business: Different industries have varying levels of risk associated with workplace injuries, which can affect the insurance premium.

  • Number of employees: The size of the workforce plays a role in determining the cost. More employees generally mean higher premiums.

  • Industry risks: Certain industries, such as construction or manufacturing, have higher inherent risks, which may result in higher insurance costs.

  • Safety record and claims history: A business with frequent or severe workplace injuries may have higher insurance premiums.

  • Experience modification factor (EMR): EMR is a rating factor that reflects a business’s past workers’ compensation claims and compares it to the average claims experience within the industry.

  • Compliance with Michigan workers’ comp laws: Adherence to the state’s workers’ compensation laws and regulations can impact the cost of coverage.

  • Inclusion of a ghost policy: A ghost policy is a workers’ compensation policy obtained solely to meet legal requirements, even if there are no actual employees. The presence of a ghost policy can influence the insurance premium.

It’s important to note that these factors can vary for each business, and insurance providers will assess them individually to determine the specific cost of workers compensation insurance.

Company Cost per Month Cost per Year Best for
NEXT $20 $240 Best overall; Fastest workers compensation insurance
The Hartford $26 $312 Comprehensive workers comp insurance in Michigan
CoverWallet $27 $324 Comparing workers comp insurance quotes online in Michigan
Tivly $30 $360 Comparing Michigan workers comp quotes over the phone
Thimble $33 $396 Comparing Michigan workers comp quotes over the phone 
Hiscox $34 $408 Workers comp coverage with numerous upgrades

Compare Cheap Michigan Workers Compensation Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Michigan Workers Compensation Insurance Companies

When it comes to workers compensation insurance companies in Michigan, there are several reputable options to consider. These companies provide reliable coverage and have a strong presence in the market. Let’s review some of the best workers compensation insurance companies in Michigan:


NEXT

Pros

  • Trusted commercial insurance carrier specializing in workers compensation Michigan coverage.

  • Streamlined digital platform for easy and convenient purchasing.

  • Offers multiple lines of coverage to meet various insurance needs.

  • Provides quick and hassle-free quoting process.

Cons

  • Mixed reviews on claims handling from direct customers.

  • May not be suitable for larger businesses with complex risk profiles.

NEXT is a trusted commercial insurance carrier specializing in workers compensation insurance for businesses in Michigan. Their digital-first approach makes buying easy and convenient, particularly for digital-native business owners. NEXT Insurance offers competitive pricing for workers compensation coverage, ensuring that businesses can obtain the necessary protection at affordable rates. It’s important to note that while NEXT Insurance is well-suited for small to mid-sized businesses, larger companies with more complex risk profiles may prefer carriers with a longer claims history.

Best for: Best overall; Fastest workers compensation insurance

Average cost: $20 per month

Our rating: 10/10


The Hartford

Pros

  • Extensive experience in the insurance industry, with over two centuries of operation.

  • Strong financial stability, ensuring the ability to pay claims promptly.

  • Coverage available in all 50 states, providing broad geographical reach.

  • Provides a range of additional coverages and services for businesses, allowing for comprehensive protection.

  • Offers 24/7 claims reporting via phone, online, or mobile app, ensuring accessibility and convenience.

Cons

  • Some mixed customer feedback.

The Hartford is a trusted insurance carrier with over 200 years of industry experience. Specializing in workers’ compensation insurance in Michigan, The Hartford offers reliable coverage tailored to meet the unique needs of businesses in the state. With a strong financial stability rating from AM Best and a solid reputation, The Hartford is a top choice for businesses seeking dependable workers’ compensation insurance. Its extensive experience and commitment to providing quality coverage make it a reputable option for companies in Michigan.

Best for: Comprehensive workers comp insurance in Michigan

Average cost: $29 per month

Our rating: 10/10


CoverWallet

Pros

  • Provides access to multiple insurance partners

  • Offers a wide range of policy options

  • Allows for easy online comparison of quotes

Cons

  • Does not directly offer coverage themselves

CoverWallet is an award-winning insurance provider that offers comprehensive workers’ compensation insurance solutions in Michigan. With their innovative digital platform, CoverWallet makes it easy for businesses to obtain the necessary coverage quickly and conveniently. They strongly focus on customer service, providing responsive support and guidance throughout the insurance process. CoverWallet’s expertise in workers’ compensation insurance, coupled with its user-friendly platform, makes them an excellent choice for businesses in Michigan seeking reliable and tailored coverage.

Best for: Comparing workers comp insurance quotes online in Michigan

Average cost: $26 per month

Our rating: 10/10


Tivly

Pros

  • Provides quick insurance quotes

  • Utilizes an expert insurer matching process

  • Offers access to over 200 insurers

Cons

  • Requires calling to obtain a quote

Tivly is a renowned provider of workers’ compensation insurance in Michigan, offering reliable and tailored coverage for businesses of all sizes. With their deep understanding of the unique needs and regulations in the state, Tivly is well-equipped to assist companies in obtaining the necessary protection for their employees. Their team of experienced professionals works closely with clients to assess their specific risk profiles and customize insurance plans accordingly. Tivly’s commitment to excellent customer service ensures that businesses receive prompt assistance and support throughout the insurance process. With their comprehensive coverage options and dedication to client satisfaction, Tivly is a trusted choice for Michigan businesses seeking reliable workers’ compensation insurance. Call now to compare quotes over the phone. 

Best for: Comparing Michigan workers comp quotes over the phone 

Average cost: $30 per month

Our rating: 10/10


Thimble

Pros

  • Fast-growing small business insurer

  • Offers numerous add-ons to general liability insurance

  • Provides short-term policies

Cons

  • Customer service is not available by phone

Thimble is an innovative provider of workers’ compensation insurance in Michigan, catering to the needs of businesses, freelancers, and independent contractors. With their flexible and on-demand coverage options, Thimble offers a convenient solution for those seeking workers’ compensation insurance tailored to their specific requirements. Whether you’re a small business owner or a self-employed professional, Thimble allows you to easily customize your coverage based on the duration and scope of your projects.

Best for: On-demand workers comp coverage

Average cost: $32 per month

Our rating: 10/10


Hiscox

Pros

  • Offers refunds within 14 days of policy purchase

  • Grants discounts for bundling multiple policies

  • Provides quick claim responsiveness

Cons

  • Hiscox’s coverage options and pricing may be less competitive compared to other insurers.

Hiscox is a renowned insurance company offering tailored workers’ compensation coverage for businesses in Michigan. Focusing on exceptional customer service, they provide comprehensive solutions to meet small and medium-sized enterprises’ unique needs. Backed by strong financial stability, Hiscox ensures reliable protection for employers and employees. Their streamlined claims process and digital tools enhance efficiency and convenience. While larger companies may prefer carriers with specialized expertise, Hiscox is a solid choice for Michigan businesses seeking reliable workers’ compensation insurance and personalized support.

Best for: Workers comp coverage with numerous upgrades

Average cost: $34 per month

Our rating: 10/10

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