Why your company needs workers comp insurance

Michigan injury lawyer explains why your company should purchase workers comp insurance and why it makes good business sense.

Our law firm specializes in helping injured and disabled workers. We have over 80 years of combined experience in workers comp.

As workers comp lawyers, we are not the people that you want to see when one of your employees has an injury at work. Our job is to maximize the amount of recovery from workers comp. This means larger payouts for medical and wage loss. This is going to cost your business money in the long term.

Many employers have sought our representation because of the success we have had representing injured workers. These employers want our advice about how to classify their employees and whether they need to obtain workers comp insurance.

We do not represent employers but here is some candid advice from our workers comp lawyers.

Michigan law requires workers comp insurance

Almost every employer in Michigan is required to purchase workers comp insurance. It  is intended to protect both employers and employees in the event of a work injury. It is a no-fault system and it does not matter how the injury occurred.

Generally, your business must have workers comp insurance if it has 3 or more employees at any given time or has 1 employee working 35 hours or more per week.

Benefits under workers comp includes unlimited medical treatment, lost wages, and vocational rehabilitation. If an employer does not have workers comp insurance, they are still liable for payment. Officers and directors may be personally liable.

Failure to maintain workers comp insurance as required by law can also be considered a criminal act. Employers should be mindful about improperly classifying employees as independent contractors. Do not try to game the system because odds are you will lose.

It makes good business sense to get workers comp insurance

The Workers Compensation Research Institute (WCRI), a nonpartisan and not-for-profit research organization, recently found that Michigan’s workers comp system offered a better value proposition for both employers and injured workers.

The WCRI found that the average medical cost per claim with more than seven days of lost time paid by employers in Michigan was among the lowest of the 15 study states. The states that Michigan often competes with for business studied in the report include Illinois, Indiana, Iowa, Minnesota, Pennsylvania, Tennessee, and Wisconsin.

Employers have also figured out that it is cheaper to pay workers comp benefits voluntarily than to dispute an arguable case. Providing prompt medical care and honoring work restrictions gets your employees back to work faster. This reduces your costs for hiring and training new people. It also reduces the chance that you will be faced with litigation.

Our team of Michigan Workers Comp Lawyers

We strongly recommend that employers obtain workers comp insurance. The cost of premiums are relatively low and the protection can save your business.

To speak with an experienced workers comp lawyer, call (855) 221-2667 for a free consultation. We will make sure that your legal rights are protected and that you receive the maximum compensation under the law.

Alex Berman is the founder of the law firm. He’s been representing injured and disabled workers exclusively for more than 35 years.  Alex has helped countless people obtain workers comp benefits and never charges a fee to evaluate a case.

Related Information:

FAQs about workers compensation to help protect you

You can afford a great workers compensation lawyer

Photo courtesy of Creative Commons, by 2Tales.

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