No, you generally cannot sue a workers comp insurance company in Michigan just because a claim was denied, delayed, or benefits were cut off. Workers’ comp is your “exclusive remedy” (MCL 418.131(1)), so Michigan courts generally lack jurisdiction over standard claim-handling disputes — those are resolved through the state’s administrative system instead. There are limited exceptions, including statutory penalties for late payment, a formal appeal process, and in some cases a separate lawsuit against a third party or an uninsured employer.
Why You Generally Cannot Sue a Workers’ Comp Insurance Company in Michigan
- Exclusive remedy: State courts generally lack jurisdiction over standard claim disputes.
- Administrative system: Disputes go through the Workers’ Disability Compensation Agency, not civil court.
- Statutory penalties instead of lawsuits: Michigan law provides penalties against insurers for late or unpaid benefits, handled through the administrative system rather than a separate lawsuit.
Workers’ comp is the exclusive remedy for a work injury, including disputes over how a claim is handled, which is why you generally cannot sue your workers comp insurance company in Michigan directly in civil court. (MCL 418.131(1))
How to Fight Back Within Michigan’s System
Even though you cannot sue a workers comp insurance company in Michigan the way you would in an ordinary civil case, Michigan gives you other ways to force payment.
- File an Application for Mediation or Hearing (Form WC-104A): Your primary recourse for denied, stopped, or underpaid benefits.
- Statutory penalties for late payment: Insurers who unreasonably delay or fail to pay benefits can face penalties assessed through the administrative process.
- Appeal the magistrate’s decision: A denial at the hearing level can be appealed within Michigan’s workers’ comp system.
Insurers who unreasonably delay or fail to pay owed benefits can be penalized under Michigan law, which is often a faster path than trying to sue a workers comp insurance company in civil court. (MCL 418.801(2))
Insurance companies look for ways to dispute work injury claims. They use out-of-context surveillance to say that a person is not hurt, and send people to so-called “independent” medical examinations to argue they are not disabled. Medical evidence and witness testimony can be presented to a magistrate who will decide if additional benefits should be paid.
Exceptions Where You Can Take Legal Action
While you typically cannot sue a workers comp insurance company in Michigan, there are a few situations where a lawsuit is possible against someone else involved in your injury.
- Third-party lawsuits: If a third party caused your injury, a separate civil lawsuit is possible.
- Uninsured employer: You may sue directly if your employer lacked required coverage.
- Intentional torts: A lawsuit is possible if your employer deliberately caused your injury.
Employers who lack required coverage can be sued directly. (MCL 418.647(2)) Employers who intentionally cause a workplace injury lose exclusive remedy protection. (MCL 418.131(1)) Third-party claims are separate from, and in addition to, workers’ comp benefits, though your carrier has a lien on any third-party recovery. (MCL 418.827(5))
How Long Do You Have to File a Workplace Injury Claim in Michigan?
In Michigan, you must provide notice of injury within 90 days of the workplace accident to your employer (MCL 418.381(1) and file the claim properly. There is no statute of limitations, so a person can seek benefits at any time as long as they adhere to the 1 and 2 year back rule. (MCL 418.381(2) It is up to an employee to file a claim and prove that any disability was caused by employment activities.
In Michigan, employees who collect injury benefits after a workplace accident can trade them for a lump sum cash payment, since they generally cannot sue a workers comp insurance company directly and instead negotiate a resolution. The amount is going to depend upon how much the insurance company thinks it must pay. A settlement will cover future medical care and lost wages. Pain and suffering are not available.
How Much Is a Denied Work Injury Claim Worth Once Resolved?
Employees who collect insurance benefits after a workplace accident can trade them for a lump sum cash payment. The amount is going to depend upon how much the insurance company thinks it must pay. A settlement will cover future medical care and lost wages. Pain and suffering are not available.
A good starting point for settlement is multiplying the weekly comp rate by 52. This shows how much the insurance company might have to pay annually. Insurance companies will typically negotiate a payout amount based upon several years of disability plus future medical.
Hiring an experienced attorney typically results in a larger settlement amount, even in cases where you cannot sue a workers comp insurance company directly and have to work through the administrative process instead. Understanding medical and legal issues is the key to a successful negotiation. Attorney fees are just a fraction of the total and quickly made up by higher settlement offers. There is no fee unless benefits are recovered.
Injured on the job in Michigan? Contact our lawyers now
If you were injured while on the job in Michigan and are wondering if you can sue the workers’ comp insurance company or if you have any other questions about your claim, call now or fill out our contact form for a free consultation. There is absolutely no cost or obligation. Our attorneys are here for you.
Our attorneys have been exclusively helping injured workers in Michigan for more than 40 years. Our attorneys can help you better understand Michigan work injury laws and what happens after someone has been hurt on the job. To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.
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:
What To Expect At A Workers’ Comp Hearing In Michigan: Here’s What To Know
