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Workers’ Compensation Insurance in Michigan

Workers' Compensation Insurance in Michigan

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If your business has employees in the state of Michigan, you’ll need to make sure you adhere to Michigan’s Workers’ Compensation Insurance laws. Workers’ Compensation provides medical and financial benefits for employees who suffer work-related injuries or illnesses or for their survivors in the case of an employee death.

Who needs Workers’ Compensation Insurance in Michigan?

Most employers in Michigan will need to purchase Workers’ Compensation Insurance. The following are regulations for what types of companies must carry coverage:

The Michigan Workers’ Disability Compensation Act (WDCA) defines all of the requirements for Workers’ Comp in Michigan, and the Michigan Workers’ Disability Compensation Agency (WCA) monitors, enforces, and administers the program. Ensuring your company is in compliance is critical, as there are serious penalties and fines for those who fail to abide by state regulations.

What employees are covered under Workers’ Compensation in Michigan?

Almost all workers are covered under Workers’ Compensation in Michigan. If you provide work or services for an employer, and you are not an independent contractor, you will likely be eligible for Workers’ Compensation Insurance.

The following are categories of employees that are eligible for Workers’ Comp coverage:

The following are categories of employees that are generally excluded from Workers’ Comp coverage:

What Workers’ Compensation benefits do employees receive?

Under Workers’ Compensation in Michigan, employers are required to provide the following benefits to employees who are injured in the course of employment:

Medical Benefits

Specific Loss Benefits

Total Disability Benefits

Partial Disability Benefits

Vocational Rehabilitation Benefits

Death Benefits

What are the penalties for breaking Michigan Workers’ Compensation laws?

Failure to adhere to the Workers’ Compensation laws set out by the WDCA can result in significant fines and even the closure of your business. In order to avoid any costly penalties, it’s important to consult the WDCA or your insurer to ensure you are in compliance. Below are the major ways in which companies can be penalized:

Failure to Purchase Coverage

Unpaid Benefits

Intentional Evasion of Coverage

How much does Workers’ Compensation Insurance cost in Michigan?

According to the National Academy of Social Insurance Workers’ Compensation Report (October 2019), the average employer cost for Workers’ Compensation in Michigan was $0.74 per $100 of covered wages. This figure is estimated across all insurers and all industries, so the cost to your particular business may vary.

How does the Workers’ Compensation claims process work in Michigan?

The claims process in Michigan begins with the employee. If an employee suffers a work-related injury or illness, he or she must report the condition to the employer within 90 days of the injury or accident. Any delay in reporting may result in delays in the claims process or a denial of the claim.

The employer must submit a claim to the WCA within two years of:

In the case of an employee death, the employee’s dependents must file a claim within two years of the death.

Michigan Workers’ Compensation Insurance Resources

For more information on Michigan Workers’ Compensation laws and requirements, please visit the following resources:

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