What to Know about Workers’ Compensation Insurance

in Michigan

Facts about Workers’ Compensation Insurance in Michigan

In Michigan, if you have employees, you are required by law to have workers’ compensation insurance. Workers’ comp is designed to cover the costs associated with injuries and illnesses your employees may suffer in the course of doing their jobs. In Michigan, this coverage can be purchased through a commercial provider or through the state fund. With approval, your company has the option to self-insure. 

More Michigan workers compensation insurance facts

  • MI workers average 111,700 job-related injuries a year.
  • Of these, about 54,200 require time off or work restrictions.
  • On average, 142 MI workers suffer fatal injuries each year.
  • In MI, the nursing industry has the highest injury rate.

Cost of Workers’ Compensation Insurance in Michigan

Costs for coverage are based on the types of jobs your employees do. Unlike other states, which set workers’ compensation rates by class code, Michigan has allowed each insurance company to set its own rates since 1983. Because of this, costs can vary significantly from one insurer to the next. This makes comparison shopping an important step in buying coverage. The upside to this open competition system is that it tends to drive rates down as insurers compete for your business. As such, rates in this state are about 9% lower than the median rate for the rest of the country.

Average Cost for Michigan Workers' Compensation Insurance (Per $50,000/yr in Payroll)

average cost for workers' compensation in michigan

Why Choose an Independent Insurance Agent?

  • Independent insurance agents live and work in your community
  • These agents can shop around to help you find the best policies
  • Your agent can provide one-stop shopping for all your insurance needs

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We were looking for workers comp insurance and we found an agent through TrustedChoice.com. We've used them in the past, and they have always been reliable. Our Agent got us the coverage we needed and he was able to deliver the quote in a timely manner.

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What Does Your Workers’ Compensation Insurance Policy Cover?

Workers’ compensation insurance is designed to protect employees as well as employers to ensure that workplace injuries do not result in large financial losses. If an injury was the result of intentional negligence, drug or alcohol impairment, or occurred outside the workplace, the claim is likely to be denied.  If you or your employees wish to contest a denied claim, you can appeal the decision through the Michigan Workers’ Compensation Agency. Your workers' comp policy can cover the following:

  1. Medical treatment: If your employees are injured or become ill on the job, workers’ compensation will pay for necessary medical care. A worker at your lakeside resort is injured while doing maintenance work on a motor boat.
  2. Lost wages: Work-related injuries often require employees to take time off to recuperate. This covers about 80% of their average weekly wage. An employee at your auto manufacturing plant breaks his arm and is out for 6 weeks.
  3. Vocational rehabilitation:  If a work-related injury leaves an employee unable to do their previously held job, workers’ comp will provide job training for another position. A worker in your warehouse can no longer lift boxes.
  4. Permanent disability coverage: If an injury leaves your employee permanently disabled, this provides a lump sum payment to ease the financial burden. A worker at your construction firm is paralyzed after a fall from a scaffold.
  5. Death benefits: If a work-related injury is fatal, workers' comp can cover burial expenses and can provide weekly benefits to the employee’s spouse and dependents. A driver for your company is killed in a collision.

Top Insurance Companies That Support Independent Agents in Michigan

There are currently 899 independent insurance agents in Michigan who can help you find the best workers’ compensation insurance policy to cover your company. Your agent can save you time and money by working with several different insurance providers to find appropriate coverage at the most competitive rates. Talk to an agent near you to start comparing customized workers’ compensation insurance quotes.

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Why Go Independent when looking for Workers Comp Insurance

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  • Get More Value for Your Money

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