Michigan Workers’ Compensation Insurance | Requirements, Rates & Quotes
Michigan Workers’ Comp
Michigan Workers’ Compensation Insurance
Straightforward guidance for Michigan employers: who must carry coverage, what benefits apply, how pricing works, and how to secure a fast, binding quote. WorkComp Options compares multiple top work comp programs for Michigan businesses.
- Coverage required if you regularly employ 3+ employees, or 1 employee working 35+ hours/week for 13 weeks
- Employer directs medical care for the first 28 days; then employee may choose with notice
- Michigan uses NCCI class codes and Experience Mods; CAOM administers filings
- 7-day waiting period; retroactive if disability exceeds 14 days
- Wage benefits are generally ~80% of after-tax average weekly wage (subject to caps)
Who needs workers’ comp in Michigan?
Michigan generally requires employers to carry workers’ compensation insurance if they:
- Regularly employ three or more employees at one time; or
- Employ at least one employee who works 35 or more hours per week for 13 weeks or longer during the preceding 52 weeks.
Family members working for the business are typically considered employees. Out-of-state employers with staff working in Michigan must comply with Michigan law and ensure the policy lists Michigan correctly.
Sole proprietors and partners are usually not covered unless they elect to be included. Corporate officers and LLC members are typically considered employees; certain owners may be able to exclude themselves if they meet statutory criteria and complete the proper election, subject to state rules and program underwriting.
Independent contractor status depends on control, direction, and whether the work is an independently established trade—not on tax forms. General/prime contractors can be responsible for benefits owed to employees of uninsured subcontractors. Collect COIs from subcontractors and verify endorsements.
What does Michigan workers’ comp cover?
- Medical care for work-related injuries/illnesses
- Wage replacement during lost time (subject to state limits)
- Temporary and permanent disability benefits
- Vocational rehabilitation when eligible
- Death benefits for eligible dependents
In Michigan, employers generally control medical care for the first 28 days after treatment begins. After 28 days, the injured worker may choose their own physician by providing notice, subject to reasonableness and network rules. Preauthorization, utilization review, and the state fee schedule apply—your adjuster will confirm what’s required.
Unique to Michigan: 28‑day medical control and after‑tax wage benefits
– 28-day rule: Employers direct medical care for the first 28 days of treatment. After that, the employee may select a provider with proper notice, subject to reasonableness and necessity.
– After-tax wage benefits: Temporary Total Disability is typically calculated at approximately 80% of the worker’s after-tax average weekly wage (considering filing status and dependents), subject to minimums and maximums set by the state.
What does it cost in Michigan?
Premium depends on:
- Payroll by NCCI class code
- Claims history and loss trends
- Experience Mod (if eligible)
- Credits/debits, safety programs, and filed rates
Effective rates vary by industry—from under $1.00 to several dollars per $100 of payroll. For accurate pricing, get a quote with current payroll and class details.
Certificates of Insurance (COIs)
WorkComp Options issues same-day COIs for active policies. We help you meet contract terms and jobsite requirements by coordinating endorsements where available.
- Rush COIs for bids and onboarding
- Waiver of Subrogation and Primary & Noncontributory wording where permitted
- Alternate Employer endorsements where permitted
- Subcontractor COI tracking to reduce audit exposure
Claims in Michigan: how it works
- Employee reports injury/illness to the employer promptly.
- Employer directs initial medical care during the first 28 days; document provider selection and referrals.
- File the Employer’s Basic Report of Injury (Form 100) within required timeframes and notify your program immediately.
- If compensable, benefits are administered per Michigan law; disputes go through the Workers’ Disability Compensation Agency (WDCA).
Official guidance: Michigan Workers’ Disability Compensation Agency (WDCA).
Michigan Workers’ Comp FAQs
Is workers’ compensation insurance required in Michigan?
Yes. Most employers must carry coverage if they regularly employ 3 or more employees at one time, or 1 employee who works 35+ hours per week for 13 weeks or longer during the preceding 52 weeks. Out-of-state employers with staff in Michigan must comply with Michigan rules.
Who can be included or excluded?
Sole proprietors and partners are generally excluded by default but can elect coverage. Corporate officers and LLC members are typically considered employees; some owners may exclude themselves if they meet Michigan criteria and complete the required election, subject to program underwriting.
Who chooses the doctor?
The employer directs medical care for the first 28 days of treatment. After 28 days, the employee may choose their physician by providing notice, subject to reasonableness and program/network rules.
Do 1099 contractors need to be covered?
Not automatically. If the relationship meets Michigan’s employment tests, a contractor may be deemed an employee. General/prime contractors can be liable for uninsured subs. Require COIs from subs and verify endorsements.
How much does it cost?
Pricing is driven by NCCI class codes, payroll, claims history, and your Experience Mod (if applicable), plus credits/debits. We compare multiple top work comp programs to find competitive Michigan rates.
Does Michigan use NCCI and Experience Mods?
Yes. Michigan generally follows NCCI for class codes and Experience Mods. The Compensation Advisory Organization of Michigan (CAOM) administers filings. Accurate class coding and audit prep help control premiums.
What is the waiting period and how are wage benefits calculated?
Michigan has a 7-day waiting period before wage benefits begin. If disability lasts more than 14 days, benefits may be retroactive to day one. Weekly wage loss benefits are typically about 80% of the worker’s after-tax average weekly wage, subject to state minimums and maximums.
What posting or notice requirements apply?
Post the Michigan workers’ compensation notice and claims reporting information in a conspicuous place. Provide written instructions on the 28-day doctor rule and how to report injuries.
What if I’m declined—are assigned risk or PEO options available?
Yes. Michigan participates in the NCCI Assigned Risk Plan for employers who can’t obtain standard coverage. Professional Employer Organizations (PEOs) may also be available depending on your industry and underwriting. We’ll compare options for cost and compliance.
How do premium audits work?
Most policies are audited annually at term end. Be ready with payroll reports and quarterly filings, overtime details, subcontractor COIs, job descriptions by class code, and owner/officer inclusion or exclusion forms.
Multi-state employees — how should I set up my policy?
Ensure Michigan is listed properly on your policy (3.A/3.C) when employees live in or regularly work in MI. We configure multi-state coverage so it follows your people and meets state rules.
What is a “ghost policy” in Michigan?
A minimal workers’ comp policy (often excluding owners) used to obtain a COI when there’s little or no payroll. Suitability depends on contract terms and state rules—ask us for compliant options.
Can I get a Waiver of Subrogation or Primary & Noncontributory wording?
Often, yes—subject to program approval and contract specifics. Request early to confirm availability, pricing, and any restrictions (blanket vs. scheduled).
What are the penalties for not carrying coverage?
Penalties can include fines and stop‑work actions, and employers may be liable for benefits if an injury occurs while uninsured. Don’t risk operating without coverage.
Where can I get official information?
Michigan WDCA: michigan.gov/leo/wdca • CAOM: caom.com • NCCI: ncci.com.
Ready to get covered?
From Detroit and Grand Rapids to Warren, Sterling Heights, Ann Arbor, Lansing, and beyond—WorkComp Options makes Michigan workers’ comp simple. One application. Multiple options. Expert support.
Last updated: September 30, 2025 • © WorkComp Options
