Michigan workers' compensation insurance: Your ultimate resource
Everything to know about workers’ compensation for
Michigan
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
Michigan
's workers' comp laws?
Michigan's workers' compensation system serves as a crucial safety net for employees across the state, providing financial assistance and medical benefits in the event of work-related injuries or illnesses.
Governed by the Michigan Workers' Disability Compensation Act, this system ensures that workers are fairly compensated for lost wages and medical expenses.
Here’s everything you need to know about Michigan workers’ compensation.
What is workers' compensation?
In Michigan, workers' compensation is a state-mandated insurance program for almost all employers. It’s designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Without workers’ compensation, the cost of a work-related injured or ill employee’s medical treatment could become the responsibility of your business.
The Michigan Workers’ Disability Compensation Act (WDCA) requires that the following types of employers must be insured with a workers’ compensation policy:
- All private employers who regularly employ one or more employees for 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks (or one year).
- All private employers who regularly employ three or more employees at one time, including part-time employees.
- Agricultural employers who employ three or more employees for 35 hours or more per week for 13 or more consecutive weeks.
- Households that employ domestic servants if they work 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks (or one year).
- All public employers.
Michigan workers' compensation rules and laws
The State of Michigan (SOM) Disability Management Office (DMO) and the Department of Labor and Economic Opportunity’s (LEO) Workers' Disability Compensation Agency administer the workers’ comp law in the state. The law, according to the Michigan Workers’ Disability Compensation Act, requires employers with one or more employees to be covered by an active workers’ compensation insurance policy.
Businesses can obtain workers’ comp coverage through a partner like EverPeak Insurance. Alternatively, companies that meet the state’s requirements may also apply to be self-insured.
Employees can verify online if their employer has coverage.
Who is covered and exempt from
Michigan
workers' comp?
Who is covered?
Policies include protection for full and part-time workers.
Some exemptions from workers’ comp in Michigan may include, for example:
- Agricultural workers who work less than 35 hours per week for 13 weeks
- Domestic workers who work less than 35 hours per week for 13 weeks
- Partners in partnerships
- Corporate officers
- Sole proprietors and independent contractors
- Family members working for relatives
- Independent contractors
Covered injuries and illnesses
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases that may develop over time due to job conditions.
Benefits provided
Michigan workers’ comp insurance provides three types of benefits for work injuries:
- Medical benefits
- Lost wages
- Death benefits
- Medical treatment for work-related accidents, injuries and/or illnesses
- Temporary disability benefits
- Permanent disability benefits
- Death benefits
Michigan workers’ compensation rates
Injured workers are paid 80%, after tax, of their average weekly wage.
As of 2023, Michigan’s workers’ comp weekly benefit amount maximum is $1,095.
How much does workers’ comp cost in
Michigan
?
How do you file a workers’ compensation claim in
Michigan
?
Filing a workers' compensation claim
In the event of a work-related injury or illness:
Step 1: Employee reports injury to employer
Employees in Michigan should report their injury to their employer immediately but no later than seven days from the accident.
Step 2: Seek medical care
The employee should immediately seek medical attention.
Step 3: Receive benefits
If the workers’ compensation claim is accepted, an injured employee may begin to receive workers’ compensation benefits, such as lost wages and medical benefits.
Step 4: Return to work
Following their recovery, a worker is expected to resume work safely. If a work injury has left an injured employee unable to do any type of work, the employee might be entitled to permanent disability benefits.
Choosing a healthcare provider
During the first 28 days of care, the State of Michigan’s Workers' Compensation’s claims process administrator, Sedgwick, has the right to select the injured worker’s healthcare provider.
After the 28-day period, injured workers are free to change doctors if they wish. To change, employees must notify Sedgwick and the Disability Management Office (DMO) of their desire to change and provide the name of the physician they wish to select.
Compensation for missed work
If an employee’s work-related disability results in them missing work for:
- Seven calendar days or less: the worker’s comp benefit is limited to the payment of reasonable and necessary medical treatment for their work-related injury or illness.
- More than seven calendar days, but less than 14: benefits include related medical treatment and wage-loss benefits starting the 8th day of disability.
- 14 calendar days or longer: benefits include related medical treatment and wage loss benefits from the first day of disability.
Resolving disputes
Injured workers who disagree with the outcome of their claim can submit a mediation request with Michigan’s Department of Labor and Economic Opportunity.
How to get workers' compensation
Insurance requirements for employers
Generally, unless exempt, employers in Michigan must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
Choosing the right insurance provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
FAQs
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Most states require businesses with employees to carry workers’ compensation insurance to stay compliant. Requirements vary by location, but having coverage ensures your business is protected and your team has access to benefits if an injury occurs.
Employees can verify online if their employer has coverage through the state’s online search tool.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensures the necessary steps are taken to initiate the workers' compensation claims process.
Whether you need coverage for contractors depends entirely on your state’s specific regulatory definitions and formal worker classification tests. Since misclassification regulations are highly complex and can lead to severe audits or stop-work orders, it’s vital to ensure your entire labor force is properly verified and protected based on the actual day-to-day work they do.
Learn more: Do independent contractors need workers’ compensation?
In most cases, employees in Virginia are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
In Virginia, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may face civil fines of up to $250 per day of non-compliance. Failure to adhere to this requirement can reach a maximum of $50,000 in fines.
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in (state) with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.