In most cases, no — Michigan law does not require sole proprietors or independent contractors to carry workers’ comp insurance for themselves.
- Sole proprietors: Not considered employees under Michigan law. No coverage is required, and none can typically be purchased for yourself under a standard policy.
- LLC members and corporate officers: May elect to be excluded from coverage by filing the required exclusion form with the state.
- Independent contractors: Not required by state law, but a hiring general contractor or commercial client may require proof of coverage before allowing you on a job site.
- Once you have employees: Businesses employing 3 or more people at one time, or even 1 employee working 35+ hours per week for 13 or more weeks in the last 52 weeks, are required to carry coverage. This includes households employing domestic help.
Employers who fail to purchase mandatory workers’ comp insurance in Michigan are still responsible for paying work injury benefits out of pocket. Officers and directors can be held personally liable for medical and wage-loss benefits, and penalties include civil fines and criminal charges.
Can I exclude myself from workers’ comp insurance coverage in Michigan?
LLC members and closely held corporations can seek an exclusion from workers’ comp insurance coverage under MCL 418.161(3), though this requires the member to own at least a 10% interest, be both a manager and member of an LLC with no more than 10 members, and file the appropriate exclusion form with the state.
Partners may also exclude a spouse, child, or parent working in the business from coverage under MCL 418.161(2).
The exclusion must be filed with the agency on Form WC-337, Notice of Exclusion, which must be notarized and, for a partnership or corporation, must list the names of all partners or corporate officers being excluded.
How much does workers’ comp insurance cost in Michigan?
Workers’ comp insurance in Michigan is relatively inexpensive depending upon the nature of the work performed and is based upon the amount of payroll. Most business owners can easily afford to have this coverage for themselves. It protects them from huge medical bills and guarantees some income while they are disabled. We strongly recommend that all business owners speak with their insurance brokers and figure out the best options for their individual circumstances.
What are the workers’ comp benefits?
Employees who are hurt on the job are entitled to unlimited medical treatment. It must be related, reasonable, and necessary. They should never owe for copayments or deductibles because everything is covered 100%.
Employees can also make a claim for lost wages if they are disabled from working. The amount paid will equal 80% of their after-tax average weekly wage subject to a state-wide maximum. It is possible to settle this claim for a lump sum payment and then resume working.
Injured while on-the-job in Michigan? Contact our lawyers now
If you were injured while on the job in Michigan and have questions about your workers’ comp insurance claim, call us 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.
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