NEXT leads Michigan's workers' comp insurance market, with great customer service and comprehensive coverage options. The Hartford and Simply Business offer equally reliable alternatives for business owners in the state, with all three providers maintaining similarly strong performance levels.
Workers' Comp Insurance in Michigan
NEXT tops our analysis as the best workers' comp insurance provider in Michigan with a 4.6 out of 5 overall score.
Compare top Michigan workers' comp insurance providers and find your ideal coverage.
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Updated: September 10, 2025
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Key Takeaways
NEXT, The Hartford and Simply Business lead Michigan's workers' comp insurance market with the highest overall scores.
Your business type, number of employees, past claims and available budget determine which workers' comp provider fits best in Michigan.
Michigan business owners should gather multiple quotes, evaluate provider expertise and review coverage details to select the right workers' comp insurance partner.
Best Workers' Comp Insurance Companies in Michigan
| NEXT | 4.59 | 1 |
| The Hartford | 4.55 | 2 |
| Simply Business | 4.50 | 3 |
| Coverdash | 4.43 | 4 |
| biBerk | 4.41 | 5 |
| Nationwide | 4.41 | 5 |
| Progressive Commercial | 4.37 | 6 |
| Hiscox | 4.35 | 7 |
| Thimble | 4.35 | 7 |
| Chubb | 4.26 | 8 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
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LEARN MORE ABOUT BUSINESS INSURANCE IN MICHIGAN
Besides workers' compensation insurance, you may want to find other options. Learn about comprehensive business protection through these other types of coverage:
Best Michigan Workers’ Comp Insurance Reviews
NEXT and The Hartford are the best workers' compensation insurance providers in Michigan.
NEXT
Best Overall Provider
MoneyGeek Rating
4.6/ 5
4.3/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average monthly premium
$65Based on average workers' compensation premiums in MichiganOur survey: Claims process
3.9/5Rating based on customer satisfaction with claims handlingOur survey: Recommend to others
4.8/5Percentage of customers who would recommend NEXT
The Hartford
Runner-Up Best Provider
MoneyGeek Rating
4.5/ 5
4.4/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average monthly premium
$65Based on average costs across business typesOur survey: Claims process
4.5/5Rating from customer satisfaction surveyOur survey: Recommend to others
4.5/5Percentage of customers who would recommend
Cheapest Workers' Comp Insurance Companies in Michigan
Michigan businesses can secure affordable workers' comp coverage through NEXT for $65 monthly ($782 annually). The Hartford and Thimble offer comparable rates at $65 and $66 per month, respectively. With less than $1 separating these providers monthly, all represent budget-friendly choices. The table below shows costs from all companies we analyzed:
| NEXT | $65 | $782 |
| The Hartford | $65 | $782 |
| Thimble | $66 | $798 |
| Simply Business | $67 | $803 |
| Progressive Commercial | $68 | $813 |
| Hiscox | $68 | $814 |
| Coverdash | $69 | $824 |
| biBerk | $71 | $854 |
| Nationwide | $76 | $916 |
| Chubb | $80 | $962 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Your actual premium depends on where your business is located, what industry you're in, how many employees you have, and other factors insurers consider.
Average Cost of Workers’ Comp Insurance in Michigan
Workers' compensation insurance in Michigan costs businesses an average of $70 per month or $835 annually. Michigan's rates run $4 below the national monthly average of $74. Your business's actual premium depends on factors like industry risk level, number of employees, total payroll and previous claims history.
Average Cost of Workers' Comp in Michigan by Industry
In Michigan, workers' compensation insurance costs vary dramatically by industry risk level. Speech therapists pay Michigan's lowest rates at $6 monthly, while roofing businesses face the highest premiums at $787 per month. This significant difference reflects each industry's workplace injury risk.
| Accountants | $19 | $231 |
| Ad Agency | $15 | $180 |
| Auto Repair | $145 | $1,737 |
| Automotive | $111 | $1,334 |
| Bakery | $50 | $605 |
| Barber | $13 | $161 |
| Beauty Salon | $14 | $166 |
| Bounce House | $38 | $461 |
| Candle | $38 | $458 |
| Cannabis | $79 | $951 |
| Catering | $69 | $830 |
| Cleaning | $46 | $546 |
| Coffee Shop | $44 | $533 |
| Computer Programming | $27 | $323 |
| Computer Repair | $22 | $269 |
| Construction | $171 | $2,053 |
| Consulting | $29 | $343 |
| Contractor | $158 | $1,897 |
| Courier | $213 | $2,555 |
| DJ | $13 | $159 |
| Daycare | $13 | $151 |
| Dental | $11 | $127 |
| Dog Grooming | $61 | $731 |
| Drone | $26 | $307 |
| Ecommerce | $21 | $248 |
| Electrical | $55 | $655 |
| Engineering | $36 | $436 |
| Excavation | $101 | $1,207 |
| Florist | $58 | $698 |
| Food | $40 | $481 |
| Food Truck | $43 | $519 |
| Funeral Home | $25 | $303 |
| Gardening | $44 | $529 |
| HVAC | $59 | $712 |
| Handyman | $88 | $1,053 |
| Home-based | $9 | $114 |
| Hospitality | $66 | $787 |
| Janitorial | $46 | $556 |
| Jewelry | $28 | $341 |
| Junk Removal | $133 | $1,601 |
| Lawn/Landscaping | $35 | $425 |
| Lawyers | $49 | $591 |
| Manufacturing | $56 | $669 |
| Marine | $143 | $1,712 |
| Massage | $14 | $165 |
| Mortgage Broker | $13 | $158 |
| Moving | $249 | $2,983 |
| Nonprofit | $30 | $361 |
| Painting | $132 | $1,586 |
| Party Rental | $35 | $416 |
| Personal Training | $24 | $286 |
| Pest Control | $67 | $799 |
| Pet | $29 | $349 |
| Pharmacy | $6 | $72 |
| Photography | $16 | $194 |
| Physical Therapy | $7 | $78 |
| Plumbing | $61 | $726 |
| Pressure Washing | $80 | $956 |
| Real Estate | $28 | $339 |
| Restaurant | $60 | $721 |
| Retail | $33 | $396 |
| Roofing | $787 | $9,441 |
| Security | $49 | $588 |
| Snack Bars | $41 | $488 |
| Software | $25 | $302 |
| Spa/Wellness | $17 | $198 |
| Speech Therapist | $6 | $68 |
| Startup | $12 | $148 |
| Tech/IT | $26 | $310 |
| Transportation | $218 | $2,615 |
| Travel | $7 | $79 |
| Tree Service | $207 | $2,487 |
| Trucking | $255 | $3,058 |
| Tutoring | $10 | $114 |
| Veterinary | $18 | $221 |
| Wedding Planning | $27 | $323 |
| Welding | $111 | $1,335 |
| Wholesale | $38 | $454 |
| Window Cleaning | $199 | $2,386 |
How Much Workers' Comp Insurance Do I Need in Michigan?
Michigan requires most employers with three or more regular employees to carry workers' compensation insurance. This coverage pays for medical expenses and lost wages if employees get hurt or become ill due to their work.
Businesses that don't comply face civil fines of up to $1,000 for each day they don't have coverage. Michigan can also charge employers with a criminal misdemeanor.
Sole proprietors
Business owners who work independently can choose to exclude themselves from workers' compensation coverage requirements. Health insurance must be maintained separately.
Corporate officers
Executive officers owning at least 25% of company stock can opt out by filing an exemption form with proof of alternative medical coverage.
Real estate agents
Licensed real estate professionals working on commission qualify as independent contractors and are not required to carry workers' comp insurance.
Domestic workers
Household employees working fewer than 40 hours per week or earning under $1,000 per quarter may be exempt from mandatory coverage.
Farm laborers
Agricultural workers on small farms with payroll under $20,000 per year can operate without workers' compensation insurance coverage.
Religious organizations
Members of religious orders performing duties for their organization are typically exempt from workers' compensation requirements.
Limited liability members
Managing members of LLCs can waive coverage by submitting proper documentation showing at least 10% ownership stake.
Casual laborers
Workers hired for temporary projects lasting less than 10 consecutive work days may not require coverage under state law.
How to Get the Best Workers' Comp Insurance in Michigan
While workers' compensation insurance in Michigan requires careful consideration, affordable coverage options exist to protect your workforce and maintain reasonable business insurance costs. Take time to compare insurance rates from multiple providers and evaluate their coverage options and claims handling processes to find the right fit for your company.
- 1
Check coverage requirements
Michigan law requires most businesses with employees to carry workers' comp insurance. Even hiring one part-time worker means you need workers' comp.
- 2
Collect business details
Prepare accurate payroll records, employee count and job classifications before requesting quotes.
- 3
Get multiple insurance quotes
Contact at least three different insurance carriers for quotes.
- 4
Find industry-specific coverage
Select insurers who understand your business type and Michigan's safety regulations.
- 5
Review provider quality
Check each insurer's claim processing speed and complaint history. Look for added benefits like workplace safety training or return-to-work programs.
- 6
Review policy details
Carefully examine coverage limits and exclusions. Consider pay-as-you-go structures for better cash flow management.
- 7
Schedule annual reviews
Review your coverage yearly as business changes can affect your insurance needs.
Michigan Workers’ Comp: Bottom Line
Michigan businesses have access to several strong workers' compensation insurance providers. Our analysis shows NEXT, The Hartford and Simply Business lead the market in Michigan. Consider getting quotes from these providers and compare their offerings based on your industry type, number of employees and available budget.
Michigan Workers' Comp Insurance: FAQ
Michigan business owners often face complex decisions about workers' comp insurance requirements and costs. Find clear answers to your most common questions in our comprehensive FAQ guide below.
Is workers' comp insurance required for all Michigan businesses?
Michigan law requires businesses with three or more employees or one employee working 35+ hours weekly to carry workers' compensation insurance. Sole proprietors, independent contractors and corporate officers who own 10% or more of the company are exempt. Noncompliant employers face fines up to $1,000 per day and potential criminal charges with up to three years imprisonment.
How much does workers' comp insurance cost in Michigan?
NEXT offers the lowest-priced workers' comp insurance in Michigan at $65 per month ($782 annually). Your final premium will vary based on your industry risk level, number of employees, payroll size and claims history.
What does workers' comp insurance cover in Michigan?
Michigan workers' comp insurance provides medical treatment coverage and wage replacement benefits for work-related injuries or illnesses. The insurance covers necessary medical costs and pays about 80% of after-tax wages during recovery. It also protects employers from employee lawsuits related to workplace injuries.
Which workers' comp insurance company is best in Michigan?
NEXT leads Michigan workers' compensation providers with a 4.59 overall score, excelling in customer service (4.70) and coverage options (4.80). The Hartford follows at 4.55, known for consistent service quality, while Simply Business scores 4.50 and offers the most comprehensive coverage options (4.90). Choose based on your priority: service quality, reliability or coverage breadth.
What happens if I don't have workers' comp insurance in Michigan?
Operating without workers' compensation insurance in Michigan is illegal for most employers. Violations can result in fines up to $1,000, potential criminal charges and business closure. Employers become directly liable for worker injuries and lost wages. The Michigan Workers' Disability Compensation Agency actively enforces compliance and can pursue legal action against uninsured businesses.
Do sole proprietors need workers' comp insurance in Michigan?
Sole proprietors in Michigan generally don't need workers' compensation insurance since they're not considered employees.
How do I choose the right workers' comp insurance company in Michigan?
Start by getting quotes from at least three Michigan workers' comp insurers. Look for carriers with experience in your industry.
How We Scored the Best Workers' Comp Insurance Companies in Michigan
- Affordability (50%): Cost drives every small business insurance decision in Michigan's expensive market. We compared monthly premiums across all companies, since even comprehensive policies won't help if you can't afford them.
- Customer experience (30%): When your employee gets hurt, you'll need an insurer that handles claims quickly and treats injured workers fairly. We used J.D. Power ratings, Michigan Department of Insurance complaint data and independent reviews.
- Coverage options (15%): We evaluated each company's policy flexibility, add-on options and coverage limitations for specific Michigan industries and regulatory requirements.
- Financial strength (5%): Premium savings don't matter if your insurer struggles financially. We checked AM Best ratings to ensure recommended carriers can deliver on their promises.
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.