Workers’ Compensation Insurance Michigan

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Key Takeaways

Michigan requires workers’ comp insurance if you have three or more employees, or one employee working more than 35 hours per week for 13 weeks or longer.
Most public and private employers need workers’ comp coverage.
Workers’ comp can help cover medical bills, lost wages and rehabilitation after a work-related injury or illness.
It may also help cover legal costs if your business is sued over a work-related injury.
On average, workers’ comp in Michigan costs about $988 per year, or $82 per month, for The Hartford’s small business customers.**
Your actual cost depends on factors like payroll, industry risk and claims history.

Does Michigan Require Workers’ Compensation?

Most likely, your Michigan business is required to have workers’ compensation insurance. You’ll need workers’ comp if you have three or more employees, or one employee working more than 35 hours per week for 13 weeks or longer.¹

Both public and private employers need Michigan workers’ compensation coverage.² This insurance gives benefits to employees to help them recover from work-related injuries or illnesses.

Michigan Workers’ Compensation Insurance Coverage

Michigan workers’ compensation insurance helps cover medical expenses, lost wages, rehabilitation costs and other employee benefits after a work-related injury or illness.

Coverage can include:³

Specific loss benefits: Helps provide set payments for certain serious work-related injuries, regardless of whether the employee can return to work.⁴
Medical benefits: Helps pay for treatment related to a work injury or illness.
Wage-loss benefits: Can help replace a portion of lost income while an employee recovers.
Disability benefits: Provides support for temporary or permanent disabilities.
Rehabilitation benefits: Helps cover retraining if an employee can’t return to their previous job.
Specific loss benefits: Provides set payments for certain serious injuries (like loss of a finger or limb). The rate is 50% of the state average weekly wage as of the date of injury.⁵
Death benefits: Helps support dependents if a work-related injury results in death.

Michigan workers’ compensation insurance can also help protect your business. If an employee or their family sues your business, this coverage can help pay your legal costs.

Learn more about what’s included in workers’ compensation coverage and how it can help protect your employees and your business.

Who Needs Workers’ Comp Insurance in Michigan?

Most businesses in Michigan are required to carry workers’ comp insurance under the state’s Workers’ Disability Compensation Act. The state also requires all public employers to carry coverage.⁶

There are exemptions to the state law, such as:

Agricultural employers, unless they have three or more employees working more than 35 hours a week for 13 weeks.⁷
Domestic workers, like housekeepers.⁸
Partners and officers, depending on business structure
Sole proprietors who are considered self-employed. Employees of sole proprietorships will need workers’ compensation insurance in Michigan.⁹
Family members employed by a relative.¹⁰
Independent contractors hired by the business.¹¹

Michigan businesses that don’t carry required workers’ compensation insurance can face fines, penalties and other legal risks.

If you’re not sure whether your business needs coverage, review workers’ compensation requirements to understand how coverage rules may apply to your business.

How Much Does Workers’ Comp Insurance Cost in Michigan?

On average, workers’ compensation insurance in Michigan costs about $988 per year, or $82 per month, for The Hartford’s small business customers.^**

Your actual cost will depend on your business. Insurance companies use several factors to determine your premium, including:

Payroll
Industry and job risk
Claims history
Number of employees
Coverage needs

Learn more about the factors that influence workers’ compensation costs and how workers’ compensation insurance premiums are calculated in your state.

How Does Workers’ Comp Work in Michigan?

Employees in Michigan can receive workers’ comp benefits starting on their first day of work if they experience a work-related injury or illness. Generally, these benefits equal about 80% of the worker’s average weekly wage before they got hurt or sick.¹²

The Michigan Workers’ Disability Compensation Act also outlines treatment options and waiting periods for workers’ comp insurance in Michigan if an employee gets hurt or sick from their job.

During the first 28 days, you can choose your employee’s doctor for treatment. After that, your employee can choose their own doctor but must notify you and your insurance company. In Michigan, employers and insurance companies don’t have to authorize treatment for employees as long as the claim isn’t in dispute.¹³

Employees also have a seven-day waiting period for wage-loss benefits. This means if an employee’s work-related injury or illness prevents them from working for longer than seven days, they’ll begin receiving wage-loss benefits on the eighth day. If they are unable to work for 14 consecutive days or longer, they may be paid for the first seven days they missed.¹⁴

Reminder:

Businesses that don’t comply with Michigan workers’ compensation requirements can face fines, penalties and other legal risks.

Filing a Claim for Workman’s Comp in Michigan

Workers’ compensation claims in Michigan generally must be filed within two years of an employee’s work-related injury or illness. Otherwise, you’ll need to file it within two years from the date that an injury or illness shows up.

To get started, visit our workers' compensation claims page today.

If there is a dispute over a claim, your employee can notify the workers’ compensation bureau and file an “Application for Mediation or Hearing.”¹⁵ You’ll then have to file a form to respond to the worker’s application and you’ll likely receive a mediation hearing.¹⁶

The bureau assigns a mediator, and you and your employee will try to come to a resolution. If there’s no agreement, the dispute goes to a trial before a workers’ compensation magistrate.¹⁷

Why Choose The Hartford for Workers’ Comp in Michigan?

The Hartford’s workers’ compensation insurance helps protect your employees and your business when a workplace injury or illness happens. Our experienced claims team, digital self-service tools and responsive service support can help employees get the care they need while helping your business stay up and running.

Care and Support for Injured Employees

Employees have access to a nationwide network of over 1 million experienced providers, plus nurse case managers who help coordinate care and support recovery.

Convenient Prescription Coverage

Employees can fill prescriptions at thousands of pharmacies nationwide, often with little or no out-of-pocket costs.

Tools To Help You Manage Claims

Our digital platform, My Workers’ Comp Connection, helps keep you and your employees informed throughout the claims process.

Billing and Payment Flexibility

With payroll billing, your premium is based on your actual payroll, not an estimate, which can help make payments more accurate.

What Michigan Business Owners Say About Workers’ Comp:

“This was my first time submitting a claim. Very easy, and customer service walked me through the process.”

Tammy from Troy, Michigan

“The Hartford was responsive, empathetic and actually helpful throughout the process. My claim handler was on top of everything right from the start.”

Shawn from Auburn Hills, Michigan

“Great company to have in your corner. Excellent customer service and quick handling times.”

Dawn from Mason, Michigan

small business employee protected by workmans comp michigan

Michigan Workers’ Compensation Insurance Quote

Workers’ compensation insurance in Michigan can feel complex, but getting coverage doesn’t have to be. The Hartford strives to make it easier to understand your options and find coverage that fits your business. If you have questions along the way, our team of specialists are here to help.

Get a workers’ compensation insurance quote today.

Frequently Asked Questions About Workers’ Compensation Insurance in Michigan

Does A Single-Member LLC Need Workers’ Comp Insurance in Michigan?

A single-member LLC is exempt from workers' comp requirements only if all employees are members, managers and own at least 10% of the LLC. If you have employees outside that structure, coverage is required.

What Is Not Covered Under Michigan Workers’ Comp Insurance?

Michigan workers' comp does not cover self-inflicted injuries, injuries caused by intoxication or drug use on the job, injuries resulting from illegal activity and injuries sustained during horseplay.

Do I Need Workers’ Compensation in Michigan if I Don’t Have Employees?

If you don’t have employees, Michigan workers' compensation insurance is not required. If you hire employees, coverage requirements apply based on the number of workers and hours worked.

flower shop owner uses his laptop to calculate workers' compensation cost in New Hampshire

How Is Workers' Comp Calculated?

How Much Does Workers’ Comp Insurance Cost?

Workers’ Compensation FAQs

^1,2,6,7,9,11 Michigan Department of Labor and Economic Opportunity, Workers’ Disability Compensation Agency, “Workers’ Disability Compensation Insurance Requirements,” viewed June 2026.

^{3,4,5,12,13,14} Michigan Department of Labor and Economic Opportunity, “Workers’ Compensation: Rights and Responsibilities,” viewed June 2026.

¹⁰ Michigan Legislature, “Worker’s Disability Compensation Act of 1969, Section 418.161,” viewed June 2026.

^15,16,17 Michigan Department of Labor and Economic Opportunity, Workers’ Disability Compensation Agency, “Filing a Claim,” viewed June 2026.

** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.

This page outlines in general terms the coverages that may be afforded under a policy from The Hartford. All policies must be examined carefully to determine suitability for your needs and to identify any exclusions, limitations or any other terms and conditions that may specifically affect coverage. In the event of a conflict, the terms and conditions of the policy prevail.

All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Insurance Group, Inc. In Arizona, California, New Hampshire, Texas, and Washington by Hartford Fire Insurance Company, Hartford Casualty Insurance Company, Hartford Accident & Indemnity Company, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Pacific Insurance Company, Limited, Sentinel Insurance Company, LTD (CA license #8701), Hartford Lloyd's Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Trumbull Insurance Company, Hartford Insurance Company of the Southeast, and Property & Casualty Insurance Company of Hartford and its property and casualty insurance company affiliates, One Hartford Plaza, Hartford, CT 06155.

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