Pie is Michigan’s best workers' compensation insurance provider, scoring 94 out of 100. The company offers a great mix of reliable customer service, very low workers' comp rates and an extensive coverage selection. Thimble and biBerk are good runners-up that you should also consider.
Cheapest Workers' Comp Insurance in Michigan
Updated: June 3, 2025
Advertising & Editorial Disclosure
Key Takeaways
Pie, Thimble, biBerk, Nationwide and The Hartford are the best cheap workers' comp insurance providers in Michigan.
Workers' compensation coverage costs an average of $553 per year or $47 per month for most small businesses in Michigan.
Workers' comp insurance is required in Michigan for all companies with employees to cover expenses when employees sustain injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in Michigan
| Pie | 94 | $114 |
| Thimble | 92 | $140 |
| biBERK | 88 | $223 |
| Nationwide | 88 | $212 |
| The Hartford | 87 | $232 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
Best Cheap Michigan Workers' Comp Insurance by Business Size
Regardless of your business's size, Pie is still the best workers' compensation insurance provider in Michigan with the most affordable rates. Below you can review the company's rates for small, medium and larger small businesses.
| Pie | Businesses with five or less employees | $29 |
| Pie | Medium-size small businesses | $67 |
| Pie | Larger small businesses | $263 |
Pie: Best Overall
pros
Most affordable rates by a large margin
Business-insurance-only focused
Good financial strength ratings
cons
Lower customer satisfaction scores than competition
COMPANY HIGHLIGHTS
For all business sizes, Pie offers the best and cheapest overall workers' comp in Michigan, saving an average of $26 more per month than the next most affordable provider. The company also has an A- financial strength rating from AM Best and is completely focused on business insurance, making it a more tailored option.
How Much Is Workers' Comp Insurance in Michigan?
Depending on the size of your Michigan-based business, workers' comp rates range from $553 to $5,074 per year. However, this only represents software development companies. Your rates will vary widely depending on the number of employees, the risk of your industry, the work your employees do individually and your claims history.
| Larger small businesses | $429 | $5,074 |
| Businesses with five or less employees | $47 | $553 |
| Medium-size small businesses | $104 | $1,230 |
Factors That Impact Workers’ Compensation Costs in Michigan
The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs, including business type, location and employee risk levels.
Payroll costs
Businesses typically pay workers' compensation rates based on each $100 of payroll. A business with higher payroll costs pays a higher premium than one with lower payroll costs.
Number of employees
Companies with a large number of employees face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
A class code identifies the type of work employees do. This code sets the rate charged for every $100 of payroll. High-risk industries like construction, mining and manufacturing typically have higher rates than lower-risk fields such as consulting, accounting and software development.
Previous claims
A history of workers' compensation claims can increase your premium.
Michigan Workers' Comp Insurance: Buyer's Guide
Navigating business insurance is often a complicated task. We've broken down how to get the best workers' comp coverage, who needs it and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Michigan
Below are the best steps to take to get the best workers' comp policy possible for your organization.
- 1
Learn about required coverages and options
Research your state's regulations first, as requirements and options vary widely. The coverage you need depends on your industry, organization size and claims history. Talk to a business insurance agent about what's right for your company before buying to avoid getting too much or too little workers' comp insurance.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to get quotes from. Also, consider state-provided options and whether self-insurance is possible in your state.
- 3
Consult similar businesses
Talk to other businesses in your community, especially those similar to yours. Ask about their experiences, needs and coverage choices to help make your decision.
- 4
Compare multiple providers through different means
Get multiple quotes and compare providers on equal terms to find the best deal. Prices vary depending on how you get quotes: by using online comparison sites or by speaking with an agent. Use different methods and contact various companies to gain the most balanced view of what's best for your business.
Do You Need Workers’ Compensation Insurance in Michigan?
All businesses in Michigan are required to carry workers’ compensation insurance. Sole proprietors, partners and corporate officers who fully own a corporation can choose to be excluded from this insurance.
WORKERS’ COMP PENALTIES IN MICHIGAN
Businesses in Michigan must adhere to workers' compensation laws. Serious penalties for not complying include:
- Civil Penalties:
- $1,000 fine for failure to carry required workers' compensation insurance
- Each day without insurance coverage constitutes a separate offense
- Criminal Penalties:
- Jail time ranging from 30 days to six months of imprisonment
- Criminal charges including potential jail time for non-compliance
- Business Operations:
- Court order prohibiting the company from employing anyone until proper coverage is secured
- Michigan Workers' Compensation Agency has authority to order companies to cease employing individuals until coverage is obtained
- Financial Liability:
- Employers may be liable to pay expenses for injured employees even if not required to purchase coverage
What Does Workers’ Compensation Insurance Cover in Michigan?
Workers' compensation insurance provides important benefits to employees with work-related injuries or illnesses. It covers medical care, disability benefits and lost wages, paying 80% of weekly wages in Michigan. This protects employees and shields businesses from legal claims.
Best Workers' Compensation Insurance Michigan: Bottom Line
In Michigan, the top three workers' comp insurance providers offering great value are Pie, Thimble and biBerk. While these companies are our recommendations, compare rates yourself and consult similar businesses in your industry to get the best deal.
Workers' Comp Insurance in Michigan: FAQ
Below are answers to frequently asked questions about Michigan workers' comp insurance from our MoneyGeek experts:
Which company has the best workers’ compensation insurance in Michigan?
Pie provides the best cheap workers’ compensation insurance in Michigan, with competitive pricing (starting at $29 per month) and a low complaint index. Selecting the best insurance for your needs will depend on various aspects, including your industry, the size of your workforce and state requirements.
Does Michigan require businesses to have workers’ compensation insurance?
In Michigan, workers' compensation insurance is a legal requirement for businesses. However, sole proprietors, partners and corporate officers who own their company outright may choose to forego coverage.
How much does workers’ compensation insurance cost in Michigan?
In Michigan, the average cost of workers' compensation insurance for medium-sized small businesses is about $104 monthly.
How We Rated Workers' Comp Insurance Companies in Michigan
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.