Most likely, if you own a business in Michigan, you’re required to carry workers’ compensation insurance. You’ll need to have workers’ comp coverage if you have three or more employees, or one employee who works for you for more than 35 hours per week for 13 weeks or longer.
Workers’ comp insurance provides benefits to employees to help them recover from work-related injuries or illnesses. It also protects employers against having to pay for costs associated with work related injuries that could put the future of the businesses they’ve worked so hard to build at risk.
In this article, we’ll cover:
- 5 best workers’ compensation insurance companies in Michigan
- Workers’ compensation laws in Michigan
- What does workers’ compensation insurance cover?
- What doesn’t workers’ compensation insurance cover?
- How does worker’s comp work in Michigan?
- How is workers compensation insurance different from general liability insurance?
- How much does workers compensation insurance cost in Michigan?
- How to find cheap workers’ compensation insurance in Michigan?
- Filing a workers’ comp claim in Michigan
5 best workers’ compensation insurance companies in Michigan
We researched many companies that offer workers’ compensation insurance in Michigan to come up with our top five for different reasons.
- CoverWallet: Best for business owners looking to compare quotes quickly and easily
- Pie: Best for getting a quick quote online
- The Hartford: Best for businesses that are looking for an ethical insurer
- Travelers: Best workers’ comp insurer in Michigan
- AIG: Best for added features
CoverWallet: Best for business owners looking to compare quotes quickly and easily
CoverWallet is a next-generation, yet highly-experienced, insurance provider. The company has developed their own state-of-the-art platform, using algorithms generated by the people who work for it, to ensure it’s able to supply small businesses with the workers comp coverage they need at the best possible price. The platform makes it fast and simple to get quotes from several providers, making it possible to compare quotes on a single screen.
Here’s what a CoverWallet quote looks like:
More good news: You only have to answer the questions about your business — and provide the information required — to generate quick and accurate quotes. You don’t have to waste time inputting information that doesn’t impact your premium cost. The entire process should take less than ten minutes from beginning to end. If your situation isn’t complicated, it could take less than five.
You can rest assured knowing that CoverWallet is a part of Aon, a well-known company that provides advice to businesses on things like risk, health, and retirement.
Once you get your quote, it’s easy to purchase a policy online or through an agent. When you get your workers’ comp coverage through CoverWallet, it’s simple to manage your policies online, including doing things like downloading a certificate of insurance, filing a claim, renewing your policy and more.
In addition to all this, you can get other types of coverage through CoverWallet, so you can secure and manage all your small business coverage through a single provider.
Pie: Best for getting a quick quote online
Why is this insurance company named Pie? Because they make getting workers comp insurance as easy as pie. They believe shopping for workers’ comp coverage and other business insurance should be as simple and accessible as buying other things online.
Pie has developed their own online insurance experience — from getting a quote to making a claim — from the ground up. The complete quoting process can take as little as three minutes and buying a policy takes just a few minutes more.
Here’s what a quote from Pie looks like.
Pie offers workers’ comp insurance to small businesses direct and it also partners with local, regional and national insurers to also provide coverage through them. Their unique way of doing business, and the machine learning model they use to underwrite workers’ comp policies, makes it possible for small businesses to save up to 30 percent on coverage when compared with more traditional, old-school insurers.
Pie is what is known as an insuretech company. However, even though they have a novel way of doing business, you can rest assured knowing the insurance they offer is underwritten by Sirius Group, which has earned solid industry rankings. Pie also has very good customer service ratings and hundreds of positive online reviews.
The Hartford: Best for businesses that are looking for an ethical insurer
Do you want to get your workers’ comp coverage from an honest and ethical provider? The Hartford could be the perfect insurer for you.
The Hartford is one of the oldest companies in the U.S. It’s offered insurance solutions for more than 200 years and has helped one million plus businesses with their insurance needs.
The company takes pride in the fact that the Ethisphere Institute has named The Hartford a World’s Most Ethical Company twelve times. The Hartford’s longevity and focus on ethics makes it a company that you can feel confident about entrusting your business and the well being of your employees to.
Here’s an example of a workers’ comp quote from The Hartford.
The Hartford offers some unique features and benefits as part of its workers’ comp insurance package including:
- A preferred medical provider network which makes it easy to get access to medical professionals across Michigan who are experienced in treating job-related injuries and illnesses.
- A prescription drug program that includes pharmacies all over Michigan that can fill prescriptions, usually with little or no out-of-pocket cost. The program also offers convenient mail order service.
- The needle stick reimbursement program helps pay for testing of a medical worker and their patient if the worker gets pricked by a needle. It also pays for ongoing testing, if it’s needed.
- The nursed back to health program provides experienced nurses to help coordinate medical services and provide therapeutic care.
- Pay as you go billing solutions that base your workers’ comp coverage on your current number of employees and actual payroll. This is great for companies that have a workforce that regularly changes in size and want to maintain control over their cash flow.
The Hartford is an honest and ethical insurance provider you’ll feel good about working with.
Travelers: Best workers’ comp insurer in Michigan
Travelers is the number one provider of workers’ compensation coverage in the United States and a top provider in Michigan.
It’s known for its solid customer service, flexible insurance solutions, responsive service and corporate culture than encourages innovation. Travelers also uses its extensive experience to help businesses reduce workplace and job site risk, which leads to lower premium costs. It also provides access to care that can speed the return to work for injured or sick workers.
Travelers is known for its:
- Flexible small business insurance solutions. It has coverage tailored to different industries that can be customized for different businesses facing unique risks.
- Responsive and reliable service. Knowledgeable professionals are always available to answer your questions and help you with a claim.
- Innovative culture. Even though Travelers has been around for a long time, it is known as an innovative insurance company.
In the end, Travelers offers quality workers’ compensation protection for businesses in many industries. You owe it to yourself to see if this industry leader could be the right provider for your Michigan-based business.
AIG: Best for added features
In addition to providing top notch workers’ comp coverage, AIG is also known for its:
- Fast settlements. The company resolves workers’ comp claims quickly so affected parties get paid in a timely way.
- Automated referrals. These help ensure that the right resources are brought in to guide medical care for injured workers.
- Expert claims handling. The firm has a team of specialists that ensure even the most complex claims are reviewed by the right people on day one.
- AIG Go WC. This mobile-friendly solution provides injured workers with timely information about their claims.
- Workplace insights. AIG uses workplace data to make recommendations on how to make your place of business safer.
- Advanced injury analytics. The firm’s proprietary technology provides insights into the most complex cases and recommends actions that will result in the best outcomes.
- IntelliRisk. AIG’s own award winning system makes detailed claim information available real-time giving clients and brokers the ability to manage risk more effectively.
- Productivity Edge. A nurse triage and outcome based network (OBN) program provides guidance to injured workers, helping ensure they get the correct treatment.
- MyAIG: This is AIG’s platform that provides a single source of claims information.
AIG makes the workers’ comp claims and patient recovery process easy and efficient.
Workers compensation laws in Michigan
According to Michigan’s Workers’ Disability Compensation Act, most businesses in the state need workers’ comp insurance. Michigan requires all public employers to carry coverage.
The only exceptions to this are:
- Agricultural employers, unless they have three or more employees working for them more than 35 hours a week for 13 weeks
- Domestic workers, such as housekeepers
- Partners and officers of a partnership and corporation.
- Sole proprietors who are considered self-employed. However, employees of sole proprietorships are required to be covered by workers’ comp.
- Family members working for someone they’re related to as an employee
- Independent contractors that a business hires to do project work.
It’s important for you to comply with Michigan’s workers’ comp laws and regulations. If you don’t, your business can face significant fines and penalties.
What does workers compensation insurance cover?
In Michigan, workers’ comp can help cover:
- Accident or injury: Workers’ compensation coverage pays medical costs if an employee gets injured while on the job
- Illness: If a worker is exposed to harmful chemicals or allergens in the workplace that cause an illness, their medical care can be covered by workers’ comp
- Lost wages: Work-related injuries or illnesses often force employees to miss work. Workers’ comp helps replace the lost wages of injured or sick employees while they’re recovering
- Ongoing care: If a workplace injury or illness requires an employee to get ongoing care, such as physical therapy, workers’ compensation will pay for the treatment
- Funeral costs: If an employee passes away because of a work-related incident, workers’ comp pays funeral costs up to a certain limit
- Repetitive injury: If a worker is injured because of ongoing repetitive job related physical strain, such as carpal tunnel syndrome, workers’ comp will pay for therapy
- Disability benefits: If an injury is so severe an employee never returns to work, or doesn’t for a long time, workers’ comp will pay medical costs and some lost wages over the long term.
What doesn’t workers compensation insurance cover?
Workers’ comp insurance won’t cover things like:
- Injuries to independent contractors, clients or customers
- Employees who are intoxicated or high when they’re injured
- Wages for temporary employees while recovering from a work-related injury
- OSHA fines
- Injuries that occur after the employee has left work
- Vandalism or intentional injuries.
How does worker’s comp work in Michigan?
Starting on their first day working for you, your employees can get workers’ comp benefits if they get injured or sick because of a job-related incident. These benefits are typically 80 percent of the worker’s average weekly wage before they got hurt or sick.
The Michigan Workers’ Disability Compensation Act also stipulates treatment options and waiting periods related to a claim:
- During the first 28 days, you are able to choose your employee’s doctor. After that, your employee can choose their own doctor, but must notify you and your insurance company if they make a change. In Michigan, insurance companies and employers aren’t required to authorize treatment for employees as long as a claim isn’t being disputed.
- There is 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 start getting wage loss benefits on day eight. If they don’t get regular wages for 14 consecutive days or more, they can get paid for the first seven days.
How is workers compensation insurance different from general liability insurance?
Workers comp only covers people who work for you. If a client, customer or random person is injured at your workplace or job site, general liability insurance will cover it. General liability covers bodily injury and damage caused by you or an employee to someone else’s property.
How much does workers compensation insurance cost in Michigan?
The average cost of workers comp insurance in Michigan is $0.78 for $100 payroll. However, the cost of workers’ comp coverage depends on a number of factors, including your:
- Number of employees and size of payroll
- Industry and type of work
- Workplace risks
- Company claims history
- Business age or years in operation.
All these factors, taken together, will impact your premium cost.
Different insurance companies always will give you different quotes. To get the cheapest quotes, be sure to shop around with a few companies or with a digital broker like CoverWallet to compare several quotes.
How to find cheap workers compensation insurance in Michigan
Businesses in Michigan can choose their own workers’ comp insurance provider. You owe it to yourself to compare coverage and costs from several insurers. They have different ways of calculating premium costs and you will likely find a range of prices. You can select one that offers you the best level of service, features and more at the lowest possible cost.
Filing a workers’ comp claim in Michigan
You’re required to file a claim within two years of your employee’s work-related injury or illness. You can do so on your insurance provider’s website.
If there is a claims dispute, your employee can notify the workers’ compensation bureau and file a request for mediation or a hearing. You’ll then have to file a form to respond to the request.
The bureau will assign a mediator to handle the dispute and you and your employee will try to come to a resolution. If there’s no agreement, the dispute will go to trial before a workers’ compensation magistrate.