If you have just 1 employee working 35 hours per week then your business needs workers’ comp insurance in Michigan.
Our job as lawyers is to maximize the amount of benefits paid. We are not the people you want to see when an employee gets hurt on-the-job. This is especially true if you failed to purchase mandatory insurance coverage. Here are some reasons why your business needs workers’ comp insurance in Michigan.
Workers’ compensation is a type of insurance that employers are required to buy in Michigan. It is intended to protect both employees and employers in the event of a workplace accident. Benefits are paid regardless of fault but are limited to a percentage of lost wages, medical treatment, and vocational rehabilitation. In exchange for these automatic benefits, employers get protection from civil lawsuits seeking damages for pain and suffering.
Employers who fail to purchase mandatory insurance are still responsible for payment of workers’ compensation benefits. Officers and directors of the company are personally liable. Penalties include a $1,000 fine and imprisonment up to 6 months as a criminal misdemeanor.
This insurance is relatively inexpensive and is based upon the amount of payroll. It protects employers from lawsuits and having to pay money out-of-pocket. It is the exclusive remedy and even prevents lawsuits if other employees were clearly at fault.
Your business needs workers’ comp insurance in Michigan
Your business needs workers’ comp insurance in Michigan if:
- Private employers who regularly employ 3 or more people at one time need to purchase insurance.
- Private employers who employ less than 3 people if at least one of them has been employed for 35 or more hours per week for 13 weeks or longer during the last 52 weeks.
- Households employing domestic help if they employ anyone 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks.
- All public employers regardless of number of employees are required to have insurance.
Do not risk severe penalties
Michigan law defines employment status based upon several different factors. It does not matter if an employee was called an independent contractor and paid with IRS Form 1099. This is fallacy and could end up costing you in the long run. Uninsured employers are still responsible for paying workers’ comp benefits. Additionally, they are not protected under the exclusive remedy provision and can be sued for civil damages. Criminal penalties could also be levied. Bottom line: your business needs workers’ comp insurance in Michigan!
Employees can also file their own claims with the Workers’ Disability Compensation Agency and notice will automatically be sent to your insurance carrier. Failure to accept a claim from an employee is a poor strategy. Amounts paid under the table for wage loss and/or medical treatment might not even count against future benefits. It is also not legal for an employee to sign away his or her legal rights.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 316-8033 for a free consultation today.