FAQ: Workers' Compensation Insurance in Michigan

Michigan employers are obligated to file a workers' compensation claim when an employee is injured or becomes ill due to a work-related incident. This policy will provide coverage for medical expenses, lost wages, and even funeral costs for the employee. Coverage helps protect the business from financial hardship when ongoing medical bills arise or if they are sued. 

The price of Michigan workers' compensation insurance depends on your limits, loss history, industry, payroll, and experience. Each job type is assigned a low to high rate range, and your individual risk factors will determine your premiums. Check out current workers' compensation rates by category in Michigan below, per $100 of employer payroll:

IndustryLow CostHigh Cost
Golf Courses and Country Clubs$1.96$1.66
Fitness Center- Health Clubs- YMCA Programs$0.48$0.80
Lawn Service and Maintenance$1.48$2.58
Septic Tank Cleaning- Portable Toilets$2.00$3.65
Refuse Collection- Garbage- Trash Service$3.54$6.12

All Michigan employers that have three or more employees must carry workers' compensation insurance. Coverage needs to be at the state minimum limits of liability to comply with local law. If you're found without coverage, your business could be fined or worse. 

Michigan workers' compensation insurance can cover multiple workplace injuries and illness incidents. Some included incidents that are insured under your policy are the following:

  • Traumatic injuries
  • Repetitive injuries
  • Some mental or cognitive injuries
  • Occupational illnesses/diseases

With any policy, some exclusions apply. It's important to know what these restrictions are so that your business is not filing denied claims that can hurt your insurance score and future premiums. In Michigan, here's what's not included under your workers' compensation policy:

  • Intentional injuries or illnesses
  • Injuries or illnesses sustained outside of work
  • Injuries or illnesses sustained while committing a crime
  • Injuries or illnesses sustained under the influence of drugs or alcohol

In Michigan, you may be asked to provide a workers' compensation certificate. This certificate provides proof of coverage to the recipient, showing your policy limits, expiration dates, and agent signature. This form can be obtained from your licensed independent insurance agent. Some entities that my request evidence of insurance are as follows:

  • Individuals
  • Other companies
  • Municipalities
  • Anyone you're doing work for or with

You have some options if you're searching for workers' compensation insurance that won't break the bank. An independent insurance agent can help you find coverage for an affordable price in Michigan. Here's why you need one:

  • They quote your policies for free.
  • They work with dozens of top carriers.
  • They save you the hassle of quoting through multiple markets.
  • They can shop your business policies every year if an increase occurs.

No. When your employee has to use workers' compensation benefits for a claim, it's not typically counted as income. In Michigan, this means that workers' compensation benefits are not taxable. As always, consult with a tax professional about your specifics.

What Are the Best Workers' Compensation Companies in Michigan?

National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll


Workers' Compensation Insurance Laws in Michigan

In Michigan, all employers with three or more employees must carry the state minimum limits of workers' compensation insurance or greater. If you're found without coverage, you'll be held liable for any accidents, lawsuits, and medical expenses that could arise from a workplace incident. Your business could also be responsible for penalties or jail time on top of the damages. 


Common Workers' Compensation Claims in Michigan


The top 5 industries for fatal occupational injuries in Michigan, in order:

  1. Private industry
  2. Goods producing
  3. Construction
  4. Manufacturing
  5. Service providing


The distribution of fatal occupational injuries by event in Michigan, in order:

  1. Transportation incidents
  2. Contact with objects and equipment
  3. Violence and other injuries by persons or animals
  4. Falls, slips, and trips
  5. All other


In Michigan, the chances of a workplace injury or illness taking a turn for the worst is more common. According to statistical data, 131 workers' compensation cases in Michigan turned fatal in one recent year. If you have a workers' compensation policy, funeral costs will be included under your coverage.