If a business has just 1 employee working 35 hours per week, they generally need workers’ comp insurance in Michigan.
Our job as lawyers is to maximize the amount of benefits paid to our clients. We are not the people you want to see when your employee gets hurt on-the-job. This is especially true if you failed to purchase required 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 our state. 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 for payment. Additional penalties include civil fines and imprisonment up to 6 months as a criminal misdemeanor.
Workers’ comp insurance is relatively inexpensive, and it is based upon the amount of payroll. It protects employers from lawsuits and having to pay money out-of-pocket. It is an exclusive remedy and even prevents civil lawsuits if coworkers were clearly at fault.
When does my business needs workers’ comp insurance in Michigan?
In Michigan, if your business is private, employers are required to carry workers’ compensation insurance if they regularly employ three or more workers at one time. (MCL 418.115) Even businesses with fewer than three employees may need coverage if at least one employee works 35 or more hours per week for 13 weeks or longer during the previous 52 weeks. (MCL 418.155) Households employing domestic workers must also carry insurance if those same hour and duration requirements are met. (MCL 418.118) Additionally, all public employers in our state are required to have workplace injury coverage regardless of how many employees they have.
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 lose protection under the exclusive remedy provision and can be sued for additional 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 and could lead to significant problems. It is not legal for an employee to sign away his or her legal rights. The only way to end liability for workers’ compensation is with approval of a magistrate.
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 40 years. Call (855) 221-2667 for a free consultation today.
Related information:
Michigan’s Workers’ Compensation Statute of Limitations Explained
