Workers’ compensation insurance is a vital part of any business and is required in almost every state.
There are some 873,722 Michigan small business owners, entrepreneurs, freelancers, or sole proprietors that need a workman’s comp policy.
But, what’s the best workers’ comp insurance for businesses in Michigan?
We made this quick and easy guide to assist you in finding the best workers compensation insurance company in Michigan. You’ll learn about costs, what’s covered, exclusions, and more.
Best Companies For Workers Compensation Coverage In Michigan At A Glance…
Top Workers’ Compensation Insurance Companies in Michigan (2025)
| Provider | Best For | Key Features | Availability |
| The Hartford | Established Businesses | Industry expertise, bundled policies, online quotes | Nationwide, including MI |
| Progressive Commercial | Quick Online Quotes & Small Businesses | Fast application process, broad coverage options | Nationwide |
| Thimble | Freelancers & Short-Term Policies | Flexible policies, app-based, instant proof of insurance | Michigan + select states |
| Employers Insurance | Low-Risk Industries & Remote Teams | Competitive pricing, loss control services, return-to-work programs | Nationwide, including MI |
Best Workers’ Compensation Insurance for Small Businesses in Michigan
The Hartford is the best workers’ compensation insurance provider for small businesses in Michigan. It combines industry-specific expertise (e.g., retail, hospitality, construction) with policies tailored to Michigan’s strict labor laws. Small businesses benefit from:
- Bundled discounts (e.g., savings when pairing workers’ comp with general liability insurance).
- Instant online quotes and policy activation, ideal for fast-moving small businesses.
- Free workplace safety training aligned with Michigan’s OSHA requirements.
- Dedicated claims specialists familiar with MI’s disability and return-to-work regulations.
Best Workers’ Compensation Insurance for Micro Businesses in Michigan
The Hartford is the top choice for micro businesses (1–10 employees) in Michigan. Its policies address unique challenges like limited payrolls and part-time workers:
- No minimum payroll requirements, critical for businesses with seasonal or gig workers.
- Rates as low as $64.00/month, the most affordable option for micro-business budgets.
- Mobile app management for certificates of insurance and claims tracking.
- Compliance assurance with Michigan’s exemption rules (e.g., contractors, sole proprietors).
Best Workers’ Compensation Insurance for Midsize Businesses in Michigan
The Hartford is the leading provider for midsize businesses (50–250 employees) in Michigan. It offers scalable solutions for growing companies:
- Experience Modification Rate (X-Mod) optimization to reduce premiums through safety programs.
- Multi-state coverage for businesses operating beyond Michigan.
- Return-to-work programs that minimize lost productivity under MI’s disability laws.
- Tailored risk management for high-risk industries like manufacturing and healthcare.
Who Is The Cheapest Workers’ Comp Insurance Provider in Michigan?
The Hartford offers the cheapest workers’ compensation insurance in Michigan, with rates starting at $64.00 per month for micro and small businesses. They also offer instant estimates, no-commitment quotes, and instant coverage. Key reasons for its affordability:
- Payroll-Based Pricing: Premiums scale directly with payroll size, avoiding overpayment for seasonal or part-time workers.
- Bundled Discounts: Save up to 15% by combining workers’ comp with other policies like general liability.
- X-Mod Savings: Businesses with strong safety records qualify for reduced premiums via Experience Modification Rate discounts.
- No Broker Fees: Direct online quoting cuts out middlemen, lowering administrative costs.
- Michigan-Specific Efficiency: Streamlined claims processes and compliance with MI’s labor laws minimize overhead, passing savings to businesses.
Why The Hartford Dominates Workers Comp Insurance Categories in Michigan:
The Hartford dominates workers’ comp insurance in Michigan due to its cost transparency, strong claims support, tailored small business coverage, and tech-driven tools. Its reputation for fast payouts, bundled policies, and customer service makes it a top choice. The company also offers industry-specific risk management solutions.
Key Reasons for Dominance:
- Cost Transparency: Clear, payroll-based pricing with no hidden fees—premiums scale directly with payroll size, ensuring businesses only pay for what they need.
- Compliance Expertise: Policies built for Michigan’s unique mandates, including coverage for businesses with 1+ employees and alignment with MI’s disability/return-to-work laws.
- Speed: Instant online quotes, mobile app claims tracking, and same-day policy activation cater to fast-paced Michigan businesses.
- Reputation: Backed by an A+ financial strength rating (AM Best) and 200+ years of industry trust, ensuring reliable long-term claims support.
- Tech-Driven Tools: AI-powered risk assessments and app-based certificate management streamline compliance for Michigan’s strict labor environment.
Where to Get The Best Workers’ Compensation Insurance in Michigan?
Get the best workers’ compensation insurance in Michigan by comparing top-rated providers like The Hartford, State Fund, and Employers Insurance. Prioritize companies offering fast claims, competitive premiums, and strong support for Michigan labor laws. Use platforms like Simply Insurance to compare rates instantly.
Top Private Workers’ Compensation Insurance Companies in Michigan
Private insurance companies offer a range of workers’ compensation policies tailored to diverse business needs. Notable providers include:
- The Hartford: Recognized for comprehensive coverage options and a strong focus on customer service, The Hartford caters to businesses of various sizes.
- Preferred Employers Insurance: Specializing in Michigan’s market, this company offers personalized services and competitive rates, making it a trusted choice for many local businesses.
- Employers Insurance: With a focus on small businesses, Employers Insurance provides cost-effective workers’ compensation solutions tailored to the unique challenges faced by smaller enterprises.
When selecting a private insurer, it’s essential to compare coverage options, premium costs, and customer reviews to ensure the best fit for your business.
Who is the Largest Workers’ Compensation Insurance Company in Michigan?
The largest workers’ compensation insurance company in Michigan is The Hartford. The Hartford insures thousands of Michigan businesses and is known for its strong financial stability, fast claims processing, and proactive risk management services tailored to meet Michigan’s regulatory environment.
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How Much Workers’ Compensation Insurance Do I Need in Michigan?
Most states require you to have at least $500,000 in workers comp coverage for your employees. However, the amount of coverage you need will depend on your business’s size, location, and type.
How Much Is Workers’ Compensation Insurance in Michigan?
Average cost of worker’s comp insurance in Michigan is $64.00 per month or $768.00 per year. In MI, workers’ compensation insurance costs $0.80 per $100 of payroll, depending on industry risk, claims history, and employee roles. High-risk industries like construction pay more, while office-based businesses pay less. State Fund and private insurers offer rate calculators to estimate costs accurately.
Average Cost of Workers’ Comp Insurance in Michigan
The table below provides illustrative examples of workers’ compensation insurance rates for various industries in Michigan. These figures are approximate and can fluctuate based on specific circumstances and insurers.
| Industry | Job Role | Rate per $100 of Payroll | Monthly Premium Estimate* |
| Construction | General Contractor | $3.00 – $30.00 | $750 – $7,500 |
| Manufacturing | Machine Operator | $2.50 – $15.00 | $625 – $3,750 |
| Healthcare | Registered Nurse | $1.75 – $5.00 | $437.50 – $1,250 |
| Retail | Sales Associate | $1.00 – $3.00 | $250 – $750 |
| Clerical/Office | Administrative Assistant | $0.40 – $1.00 | $100 – $250 |
*Assuming a monthly payroll of $25,000.
These estimates highlight how industry classifications impact insurance premiums. Businesses in higher-risk industries, such as construction, face higher rates due to the increased likelihood of workplace injuries. Conversely, office-based roles typically attract lower premiums reflecting their reduced risk.
Employers can utilize rate calculators provided by insurers like State Fund and private insurance companies to obtain more accurate estimates tailored to their specific business operations and workforce.
Workers’ Comp Rates in Michigan (Per $100 Payroll)
Workers’ comp rates in Michigan cost around $0.80 per $100 of payroll, based on job classification codes. Low-risk jobs like clerical work average $0.75–$1.50, while high-risk jobs like roofing can exceed $25. The Workers’ Compensation Insurance Rating Bureau sets advisory pure premium rates annually.
Michigan Workers’ Comp Rates by Classification
The Workers’ Compensation Insurance Rating Bureau of Michigan (WCIRB) assigns specific classification codes to various job types, each with its own advisory pure premium rate. These rates reflect the anticipated cost of claims associated with each classification. Below is a table illustrating sample classification codes along with their corresponding advisory pure premium rates as for 2025:
| Classification Code | Industry/Job Type | Advisory Pure Premium Rate per $100 Payroll |
| 0042 | Landscaping Gardening | $6.56 |
| 5183 | Plumbing | $1.68 |
| 8810 | Clerical Office Employees | $0.35 |
| 8742 | Salespersons – Outside | $0.65 |
| 7228 | Trucking – Local Hauling | $8.25 |
| 9015 | Building Operations by Owner | $0.97 |
| 8835 | Home Health Care Services | $5.32 |
| 8006 | Grocery Stores | $2.15 |
| 8017 | Retail Stores – NOC | $1.85 |
| 8387 | Automobile Service or Repair Centers | $3.30 |
These rates are subject to change and may vary based on the insurer and specific circumstances of the business. Employers should consult with their insurance providers or the WCIRB for the most current and applicable rates for their classifications.
How Long Does Workers’ Comp Last?
If you’re wondering how long workers’ compensation will last, the answer is different for everyone. The more severe a work-related injury or sickness, the more extended payments might last.
If you think your employee will require future medical treatment beyond regular workers’ comp payouts, advise them to speak with a lawyer about legal matters.
Factors That Affect Workers’ Compensation Costs in Michigan
Workers’ compensation costs in Michigan are affected by job classification, payroll size, claims history, and safety record. High-risk roles like construction increase premiums, while a clean safety record lowers them. Experience modification rates (X-Mod) also adjust premiums based on past claims compared to industry averages.
Let’s take a deeper look at several key factors:
- Job Classification: Each occupation is assigned a classification code reflecting its risk level. High-risk roles, such as those in construction, typically incur higher premiums due to the increased likelihood of workplace injuries.
- Payroll Size: Premiums are calculated per $100 of payroll. Consequently, businesses with larger payrolls will have higher overall premiums, as more employees equate to greater potential liability.
- Claims History: A history of frequent or severe workers’ compensation claims can lead to increased premiums. Insurers view past claims as indicators of future risk.
- Safety Record: Maintaining a strong safety record can positively impact premium costs. Fewer workplace incidents suggest effective safety protocols, making the business a lower risk to insurers.
- Experience Modification Rate (X-Mod): This rate adjusts premiums based on a company’s claims history relative to industry averages. An X-Mod below 100% indicates a better-than-average claims history, potentially lowering premiums, while an X-Mod above 100% can increase them.
Understanding and managing these factors can help businesses control their workers’ compensation insurance costs effectively.
Michigan Workers’ Compensation Insurance Requirements
Michigan requires all employers with one or more employees to carry workers’ compensation insurance, regardless of hours worked. Coverage must be purchased from a licensed insurer or the State Fund. Sole proprietors are generally exempt but can opt in. Noncompliance leads to fines and criminal penalties.
Who Needs Workers’ Comp Insurance in Michigan?
Michigan is the only state that requires all employers to be covered by workers’ compensation, even if they have only one person working for you.
Even if a company’s headquarters are in another state, Michigan law requires it to carry workers’ comp coverage for employees who work there regularly.
Which Industries Buy Workers’ Comp Policies in Michigan the Most?
Below is a list of industries that most often purchase workman’s comp insurance for their new company or startup:
- Landscaping & Lawn Care
- Food & Beverage
- Legal
- Accounting & Finance
- Retail
- Hair & Beauty
- Fitness
- Day Care
- Commercial Cleaning
- Heating & Air Conditioning
What Are The Minimum Workers’ Comp Laws in Michigan?
Employer liability in Michigan is presently defined by the following minimums: $100,000 per occurrence for a workers’ compensation insurance policy. $100,000 per employee, and the total policy value must be at least $500,000.
Who Is Exempt from Workers’ Comp Insurance in Michigan?
Workers’ compensation is necessary only for certain employees. In Michigan, it is not required for certain workers, which include:
- Business owners/sole proprietors (aside from roofers)
- Contractors
- Domestic workers who are related to their employers
- Individuals who work for aid (food, housing, etc.) rather than pay
- Specific volunteers, including volunteers for non-profit organizations
- Deputy sheriffs and deputy clerks
- Students participating in amateur sporting events/amateur sports officials
Do Independent Contractors Need Workers’ Comp Insurance In Michigan?
No, independent contractors are generally not required to carry workers’ compensation insurance for themselves. However, there are important considerations to keep in mind:
- Client Requirements: Some clients may require independent contractors to have their own workers’ compensation coverage as a condition of their contract. This requirement helps protect the client from potential liability in case of work-related injuries.
- Personal Protection: Even when not mandated, obtaining workers’ compensation insurance can be a prudent decision for independent contractors. It provides coverage for medical expenses and lost wages resulting from work-related injuries or illnesses, offering financial protection and peace of mind.
It’s crucial for contractors to stay informed about these requirements to ensure compliance and avoid potential penalties. For the most accurate and up-to-date information, contractors should consult the Michigan Contractors State License Board (CSLB) or a legal professional familiar with Michigan labor laws.
Is Workers Comp Required In Michigan?
Yes! Even if you only have one employee, Michigan employers must carry workers’ compensation insurance. And if your workers are injured or sick because of their job, you must reimburse them for workers’ compensation benefits.
Workers’ comp insurance covers essential services such as medical care, short-term disability payments, permanent disability pensions, additional job displacement benefits, and a return-to-work supplement. It also includes death benefits for final expenses.
How Workers’ Compensation Insurance Works in Michigan?
Workers’ compensation insurance is a type of insurance that provides benefits to your employees if they suffer an occupational injury or sickness. Also known as workers’ comp or workman’s comp insurance, this type of coverage may help pay for your injured or sick employees’ medical costs. It can also assist with lost income due to missed work. Workers’ compensation insurance is designed to help you and your employees avoid financial harm caused by workplace injuries such as lost wages. This coverage will:
- Support companies in various industries
- Promote worker safety
- Get employees back to work or transitional work
- Provide access to training for new skills
Most states require companies with employees to carry workers’ compensation insurance. But requirements vary from state to state. Employees can receive workers’ compensation insurance, regardless of who is at fault for the injuries or illness.
What Does Workers’ Comp Insurance Cover in Michigan?
Your insurance will cover the basics in Michigan, including medical care, temporary disability benefits, permanent disability benefits, additional job displacement benefits, and a return-to-work supplement. Furthermore, death payments are covered by workers’ compensation insurance.
The vast majority of workers compensation claims are quickly resolved.
However, issues may arise if you and your employer can’t agree on whether you sustained the harm on the job and how much in benefits they are entitled to receive.
The following is a list of injured laborer benefit entitlements in Michigan.
- Medical treatment fees
- Temporary disability payments
- Permanent disability payments
- Life pension payments
- Vocational retraining costs
- The cost of burial death benefits
What Types Of Employee Injuries Does Workers’ Comp Insurance NOT Cover In Michigan?
Workers comp insurance in Michigan does not cover injuries from intoxication, self-inflicted harm, off-duty activities, or violations of company policy. It also excludes emotional injuries without physical trauma and independent contractors. These exclusions help prevent fraud and ensure claims relate directly to work-related duties. Some examples include:
- Driving to/from work
- Intoxication/intentional act
- Horseplay
- Intentional acts
- Illegal activities
- Policy violations
- Terminated employees
How Is Workers’ Comp Different from Health Insurance?
One major difference between workers comp insurance and individual health insurance is that workers’ compensation insurance applies only to workplace injuries, while the latter only applies to non-work injuries.
Workers’ Compensation Benefits in Michigan
Workers’ compensation benefits in Michigan include medical care, temporary disability payments, permanent disability benefits, supplemental job displacement vouchers, and death benefits. These benefits aim to support injured workers during recovery, compensate for lost wages, and provide retraining or financial help to dependents if necessary
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How to File a Workers’ Comp Claim in MI
The law requires your employer in Michigan to pay for your medical treatment while you’re away from work and recuperating if you are an eligible employee with a workplace injury or sickness.
However, if you want to receive these and other workers’ comp benefits in Michigan, you must file a timely claim.
In most situations, filing a workers’ compensation claim in Michigan is simply a three-step process:
- reporting the injury
- filing the actual claim with your employer
- Filing an “application for adjudication of claim” with the Workers’ Compensation Appeals Board (WMIB).
There are time restrictions for each of these phases. In some cases, you might get away with being late on the first two steps.
However, if you miss the deadline for the final step—and your employer’s insurance company refuses to provide or continue compensation—you may be out of luck.
If you are unsure, it’s always best to reach out to the Michigan Department Of Insurance.
Workers’ Comp Settlement Chart in Michigan
Michigan workers’ comp settlement amounts vary by disability rating, wages, and injury type. A 10% permanent disability might result in $6,000–$8,000, while higher ratings can exceed $50,000. The Division of Workers’ Compensation uses a disability rating chart and formula to determine payouts.
The table below illustrates common injury scenarios and estimated settlement ranges based on Michigan’s 2025 guidelines:
| Disability Rating | Injury Type | Average Settlement Range* | Notes |
| 10% Permanent | Back Strain, Minor Fracture | 6,000–8,000 | Based on average weekly wage (MI minimum: $64.000.95/week). |
| 25% Permanent | Repetitive Motion Injury | 25,000–35,000 | Includes carpal tunnel, partial loss of limb function. |
| 50% Permanent | Severe Burns, Amputation | 50,000–90,000 | Payouts adjust for future medical care and lost earning capacity. |
| 75% Permanent | Spinal Cord Injury | 100,000–200,000+ | Lifetime disability pensions apply for total permanent disabilities. |
Why Ranges Vary:
- Pre-Impairment Earnings: Higher wages increase settlements (e.g., 500/week vs. 230/week minimum).
- Injury Date: Rates adjust annually (e.g., injuries after 1/1/2025 use updated tables).
- Future Care Costs: Severe injuries (e.g., amputations) include lifelong medical expenses.
How To Get Workman’s Compensation Insurance In Michigan?
You can buy worker’s comp insurance for your business instantly online in Michigan from an online insurance agency like Simply Insurance. There is no need to wait around for a workers compensation pamphlet in the mail.
We make purchasing worker’s comp plans easy, fast, and 100% online.
Taking Action
Worker’s Compensation Insurance is a necessary cost for business owners who want to protect themselves and employees from the unexpected.
Business owners who do not carry coverage could end up paying out of pocket for any mishaps that occur while operating their small businesses.
All you need to do is click here to get some instant quotes and get covered today.
FAQs About Workers’ Compensation Insurance in Michigan
How is worker’s comp insurance calculated in Michigan?
The total amount of premiums collected is multiplied by $100 per employee per category. By multiplying each class’s payroll by $100, you can obtain an estimate for the payrolls in each class. The base premium is the sum of all premiums collected.
Do you need workers’ compensation coverage if you’re self-employed In Michigan?
No, you don’t need workmans comp policy if you’re self-employed. However, even if workers’ compensation isn’t required, individuals who operate their businesses or work as contractors should strongly think about purchasing it.
Is workman’s comp required for part-time employees in Michigan?
This is going to depend on your needs, the company that will have the cheapest insurance in Michigan for you will depend on a number of factors that relate to your home, including the value of your home, the area you live in, what type of home you live in and what type of coverage you select. Your deductibles and coverage limits will make up a portion of the cost.
Can I use my own insurance instead of workman’s comp in Michigan?
Yes, you can also self-insure for workers’ compensation, but it isn’t usually recommended. You might need assistance from a commercial broker-agent who can also provide information on State Fund and self-insurance.
Am I Required to Have Workers’ Comp Insurance in MI?
Yes, Michigan law requires all employers with at least one employee to have workers’ compensation insurance, even for part-time or temporary staff. Failure to carry coverage can result in severe penalties, including fines, criminal charges, and personal liability for workplace injuries.
What Is the Best Workers’ Comp Insurance in Michigan?
The Hartford is the best workers’ compensation insurance provider for small businesses in Michigan. It combines industry-specific expertise (e.g., retail, hospitality, construction) with policies tailored to Michigan’s strict labor laws.
How Much Does Workers’ Compensation Insurance Cost in Michigan?
The average cost of worker’s comp insurance in Michigan is $64.00 per month or $768.00 per year depending on industry risk, claims history, and employee roles. High-risk industries like construction pay more, while office-based businesses pay less.
How Many Employees Trigger a Workers’ Comp Requirement?
In Michigan, you only need 1 employee to be required by the Michigan labor code to purchase workers comp insurance. You must also pay for workers’ compensation coverage if your workers are injured or ill due to their job.