Workers' comp rates in Michigan depend on your industry type and company size. Find answers to common coverage questions below.
Best Workers' Comp Insurance in Michigan
With rates starting at $5 monthly, NEXT, The Hartford and Simply Business offer the cheapest and best workers' comp insurance in Michigan.
Compare top Michigan workers’ comp insurance providers and find your ideal coverage.
Select your industry
Select state
Updated: November 20, 2025
Advertising & Editorial Disclosure
Best Michigan Workers' Comp Insurance: Fast Answers
What are the best and cheapest workers' comp insurance providers in Michigan?
NEXT offers the top cheap workers' compensation insurance in Michigan. The following are the state's cheapest and best workers' comp insurance providers and their average monthly rates:
- NEXT: $65
- The Hartford: $65
- Simply Business: $67
- Coverdash: $69
- biBerk: $71
Is workers' comp insurance required in Michigan?
Michigan requires workers' comp insurance for employers with one or more employees, including part-time and seasonal workers. Sole proprietors, partners and corporate officers owning 10% or more of the company can opt out. Violations trigger fines up to $1,000 daily plus potential criminal charges and civil liability for workplace injuries.
How much does workers' comp insurance cost in Michigan?
Workers' compensation insurance costs in Michigan run $35 monthly per employee for a two-person business. Your actual premium depends on your industry and payroll size. Low-risk businesses, such as speech therapy, pay around $3 per employee per month, while high-risk industries, like roofing, pay approximately $393 per employee per month.
How do you get workers' comp insurance in Michigan?
You can get workers' comp coverage in Michigan by:
- Purchasing from licensed private insurance companies in the state
- Joining group self-insurance funds through qualified employer associations
- Becoming individually self-insured if your business meets Michigan's strict financial requirements
Many business owners compare quotes online or through brokers to get the best rate and compliance support.
What does Michigan workers' comp insurance cover?
Workers' compensation in Michigan covers:
- Medical expenses for work-related injuries and occupational illnesses
- Wage loss benefits replacing portions of income during recovery periods
- Vocational rehabilitation services for workers unable to return to previous roles
- Death benefits supporting families of workers who die from job-related incidents
Best Workers' Comp Insurance Companies in Michigan
NEXT tops our research for workers' comp insurance in Michigan, offering extensive coverage choices and reliable financial stability ratings. NEXT excels with comprehensive policy options backed by Munich Re's A- rating. The Hartford and Simply Business rank as strong second and third options for small business owners in Michigan.
| NEXT Insurance | 4.59 | $65 | 1 | 2 |
| The Hartford | 4.55 | $65 | 2 | 3 |
| Simply Business | 4.50 | $67 | 5 | 1 |
| Coverdash | 4.43 | $69 | 6 | 2 |
| biBERK | 4.41 | $71 | 2 | 5 |
| Nationwide | 4.41 | $76 | 2 | 4 |
| Progressive Commercial | 4.37 | $68 | 7 | 5 |
| Hiscox | 4.35 | $68 | 4 | 6 |
| Thimble | 4.35 | $66 | 8 | 5 |
| Chubb | 4.26 | $80 | 3 | 4 |
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.
Get Matched to Top Workers' Comp Insurers in Michigan
Select your industry and state to get a customized Michigan workers' comp quote from your top provider match.
Industry
State
LEARN MORE ABOUT THE BEST BUSINESS INSURANCE IN MICHIGAN
Explore the best business insurance providers in Michigan through our guides:
Best Michigan Workers’ Comp Insurance Company Reviews
Here's our detailed analysis of the leading workers' comp insurance providers in Michigan:
NEXT
Best Workers' Comp Insurance in Michigan
MoneyGeek Rating
4.6/ 5
4.3/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Workers' Comp Premium
$65Based on average workers' compensation premiums in MichiganWorkers' Comp Digital Experience Score
4.8/5 (1st)Rating based on an internal customer satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.8/5 (1st)Percentage of customers who would recommend NEXT
The Hartford
Best Michigan Workers' Comp Insurance: Runner-Up
MoneyGeek Rating
4.5/ 5
4.4/5Affordability
4.6/5Customer Experience
4.7/5Coverage Points
Average Monthly Workers' Comp Premium
$65Based on average costs across business typesWorkers' Comp Claims Process Score
4.5/5 (1st)Rating from customer satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.5/5 (2nd)Percentage of customers who would recommend The Hartford
Cheapest Workers' Comp Insurance Companies in Michigan
NEXT offers the most affordable workers' compensation insurance in Michigan, priced at $65 per month or $782 annually, which is 6% below the state average of $70 per month.
The Hartford ranks second at $65 monthly, while Thimble takes third at $66 monthly. The table below shows costs from all companies we analyzed.
| NEXT Insurance | $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 represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.
Cheapest Workers' Comp in Michigan by Industry
The Hartford offers the cheapest workers' comp rates for welding at $103 monthly. The Hartford leads pricing in 31 industries, including ad agencies, veterinary services and window cleaning, making it Michigan's most affordable provider overall.
| Automotive | Simply Business | $104 | $1,249 |
| Accountants | NEXT Insurance | $18 | $211 |
| Ad Agency | The Hartford | $14 | $165 |
| Auto Repair | NEXT Insurance | $133 | $1,591 |
| Barber | Thimble | $12 | $149 |
| Bakery | NEXT Insurance | $47 | $562 |
| Bounce House | NEXT Insurance | $36 | $428 |
| Beauty Salon | NEXT Insurance | $13 | $153 |
| Cannabis | Nationwide | $86 | $1,029 |
| Candle | The Hartford | $36 | $429 |
| Coffee Shop | NEXT Insurance | $41 | $496 |
| Catering | Progressive Commercial | $64 | $767 |
| Cleaning | The Hartford | $42 | $507 |
| Construction | The Hartford | $158 | $1,895 |
| Computer Programming | The Hartford | $24 | $286 |
| Computer Repair | The Hartford | $21 | $249 |
| Consulting | The Hartford | $26 | $307 |
| Courier | The Hartford | $193 | $2,318 |
| Contractor | The Hartford | $144 | $1,726 |
| Dental | NEXT Insurance | $10 | $118 |
| Daycare | Simply Business | $11 | $137 |
| Drone | NEXT Insurance | $23 | $279 |
| DJ | Simply Business | $12 | $147 |
| DJ | NEXT Insurance | $12 | $147 |
| Dog Grooming | NEXT Insurance | $56 | $672 |
| Electrical | NEXT Insurance | $49 | $593 |
| Ecommerce | Thimble | $19 | $225 |
| Excavation | The Hartford | $94 | $1,125 |
| Engineering | NEXT Insurance | $33 | $401 |
| Florist | The Hartford | $54 | $649 |
| Funeral Home | NEXT Insurance | $23 | $276 |
| Food | The Hartford | $37 | $441 |
| Food Truck | NEXT Insurance | $40 | $479 |
| Handyman | Simply Business | $84 | $1,002 |
| Gardening | The Hartford | $40 | $486 |
| Hospitality | Progressive Commercial | $62 | $742 |
| Home-based | The Hartford | $9 | $102 |
| Janitorial | NEXT Insurance | $44 | $526 |
| HVAC | Thimble | $55 | $664 |
| Jewelry | The Hartford | $26 | $306 |
| Junk Removal | The Hartford | $122 | $1,463 |
| Manufacturing | NEXT Insurance | $52 | $624 |
| Lawn/Landscaping | NEXT Insurance | $33 | $394 |
| Lawyers | The Hartford | $45 | $538 |
| Massage | The Hartford | $12 | $150 |
| Marine | Progressive Commercial | $132 | $1,584 |
| Mortgage Broker | The Hartford | $12 | $145 |
| Nonprofit | The Hartford | $28 | $332 |
| Moving | NEXT Insurance | $224 | $2,687 |
| Party Rental | NEXT Insurance | $32 | $386 |
| Painting | The Hartford | $124 | $1,490 |
| Pest Control | The Hartford | $62 | $744 |
| Personal Training | NEXT Insurance | $22 | $264 |
| Pharmacy | NEXT Insurance | $5 | $66 |
| Pet | The Hartford | $27 | $323 |
| Physical Therapy | NEXT Insurance | $6 | $73 |
| Photography | The Hartford | $15 | $178 |
| Plumbing | NEXT Insurance | $56 | $670 |
| Real Estate | NEXT Insurance | $26 | $311 |
| Pressure Washing | Nationwide | $86 | $1,031 |
| Retail | The Hartford | $31 | $367 |
| Restaurant | NEXT Insurance | $56 | $666 |
| Security | The Hartford | $45 | $544 |
| Roofing | Nationwide | $852 | $10,223 |
| Snack Bars | NEXT Insurance | $37 | $448 |
| Software | NEXT Insurance | $24 | $284 |
| Startup | NEXT Insurance | $12 | $139 |
| Spa/Wellness | NEXT Insurance | $15 | $179 |
| Speech Therapist | NEXT Insurance | $5 | $62 |
| Transportation | Thimble | $204 | $2,448 |
| Tech/IT | The Hartford | $23 | $281 |
| Travel | Simply Business | $6 | $73 |
| Tutoring | The Hartford | $9 | $105 |
| Tree Service | Simply Business | $193 | $2,312 |
| Trucking | NEXT Insurance | $234 | $2,811 |
| Wedding Planning | NEXT Insurance | $25 | $295 |
| Veterinary | The Hartford | $17 | $203 |
| Wholesale | NEXT Insurance | $35 | $420 |
| Welding | The Hartford | $103 | $1,238 |
| Window Cleaning | The Hartford | $186 | $2,230 |
How Much Is Workers' Comp Insurance in Michigan?
Michigan workers' comp insurance costs an average $70 monthly ($835 annually), running $4 below the national average of $74. Industry rates vary from $6 monthly ($3 per employee) for speech therapists to $787 monthly ($394 per employee) for roofers.
| 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 |
Michigan Workers' Comp Insurance Cost Factors
These cost factors affect workers' compensation insurance rates in Michigan:
Open Competition Rating System (Since 1983)
Michigan allows insurance companies to set their own rates for each workers' compensation class code, creating price variance of 40% to 60% between carriers for identical coverage. This competitive market keeps Michigan's average rates about 22% below the U.S. median, but it means small business owners must compare multiple quotes to find the best pricing for their specific situation.
Compensation Advisory Organization of Michigan (CAOM)
Michigan uses CAOM as its independent rating bureau rather than the National Council on Compensation Insurance. CAOM bases class code rates on Michigan-specific injury data, medical costs and wage levels instead of national averages, so your rates reflect actual Great Lakes State workplace patterns rather than statistics that might not apply to Michigan's economy.
2025 Benefit Rate Structure
The maximum weekly compensation rate for 2025 is $1,164 ($60,528 annually), based on 90% of the state average weekly wage. This capped liability reduces premium costs because insurers only pay the maximum for high earners. Disabled employees receive 80% of their after-tax average weekly wage, and this after-tax calculation typically lowers premiums.
Lower Overall Claim Costs
Michigan had the lowest overall costs per workers' compensation claim among a 17-state study group at $31,735 per claim in 2024. Lower claim costs translate to lower premiums, with estimated employer costs at $0.57 per $100 of covered wages. A business with $500,000 in payroll saves $2,150 to $4,650 annually compared to average-cost states.
Michigan Workers' Compensation Placement Facility
Michigan's assigned risk pool serves as the insurer of last resort for high-risk businesses. Assigned risk pool premiums cost 25% to 50% more than voluntary market rates. A roofing contractor might pay $18 per $100 of payroll instead of $12 in the voluntary market: $30,000 versus $20,000 annually on $500,000 payroll.
Post-Injury Wage Earning Capacity (PIWEC) Provisions
Michigan law permits insurance companies to pay reduced benefits based on an injured worker's post-injury wage-earning capacity, using "phantom wages" to calculate what the worker could earn in suitable work. This provision allows insurers to lower benefit payments even when workers haven't found such employment, reducing claim costs and contributing to Michigan's below-median rates.
How Much Workers' Comp Insurance Do I Need in Michigan?
Michigan law requires workers' compensation insurance if you regularly employ three or more people or have one employee working 35 hours or more per week for at least 13 weeks. Your policy must cover all medical expenses for work-related injuries with no dollar caps, plus wage replacement equal to 80% of your employee's after-tax average weekly earnings.
Operating without the required workers' compensation coverage triggers fines up to $1,000 daily and potential jail time from 30 days to six months. Michigan can shut down your operations until you secure coverage. Your specific premium depends on your total payroll and your industry's risk classification code.
Michigan Workers' Comp Insurance Exemptions
Some business categories in Michigan are exempt from workers' comp requirements:
- Sole proprietors: You don't need to buy workers' compensation coverage for yourself as a sole proprietor, but Michigan law requires you to cover any employees you hire.
- Business partners: Partners can skip coverage for themselves while maintaining policies for their employees.
- Corporate officers: You can exclude yourself from coverage if your corporation has 10 or fewer shareholders and you own at least 10% of the stock, though you'll need to file Form WC-338 with the state.
- LLC members: Michigan exempts LLC members from coverage requirements unless you choose to include yourself in your policy.
- Independent contractors: You're exempt if you're a true independent contractor. That means you maintain your own separate business, offer services to the public and don't employ other workers.
- Agricultural workers: Farm employees working fewer than 35 hours per week for 13 weeks are not required to have coverage under Michigan law.
- Domestic workers: Household employees working fewer than 35 hours per week for 13 weeks fall outside Michigan's coverage requirements.
- Family members: Michigan allows you to exclude certain family members from coverage, including your spouse, children, or parents who work in your sole proprietorship.
- Self-employed individuals: Self-employed professionals aren't required to carry workers' compensation insurance for themselves under Michigan's Workers' Disability Compensation Act.
FEDERAL WORKERS' COMP PROGRAMS OVERRIDE STATE REQUIREMENTS
Federal employees working in Michigan receive benefits through FECA instead of Michigan's state system, while railroad workers are covered under FELA and maritime employees fall under the Longshore and Harbor Workers' Compensation Act. Michigan law also excludes independent contractors who maintain their own business and offer services to the public, plus unpaid volunteers working for your business.
How to Get the Best Workers' Comp Insurance in Michigan
Getting workers' comp insurance with the right provider at the best price means matching coverage types to your industry's specific risks.
- 1Determine if you need workers' comp coverage in Michigan
Michigan requires coverage if you regularly employ three or more people or have one employee working 35 hours or more weekly for 13 weeks. Your solo consulting practice doesn't need coverage, but hiring your first full-time employee changes that. Michigan uses strict criteria to classify workers, so those 1099 contractors on your payroll might qualify as employees under state law.
- 2Gather your business information
Collect your total employee count, annual payroll and Michigan class codes before requesting quotes. Michigan operates under the Compensation Advisory Organization of Michigan (CAOM) rather than NCCI, which means your industry classification differs from most other states.
Accurate numbers prevent headaches later. Incorrect payroll figures or wrong business codes create audit surprises or leave you without coverage when filing a claim. Agricultural and construction businesses need extra attention here since Michigan's 35-hour weekly threshold works differently than in other states.
- 3Request workers' comp quotes from multiple carriers
Get quotes from at least three insurers to see real business insurance costs for your Michigan operation. Include the Michigan Workers' Compensation Placement Facility in your search, as this assigned risk pool covers employers who can't find private market coverage.
Private carriers control Michigan's workers' comp market, and their rates vary. Insurers specializing in your industry often provide better pricing than general carriers. Shopping around reveals substantial price differences for identical protection.
- 4Research providers with industry experience
Look beyond cheap business insurance rates to find carriers who know Michigan's Workers' Disability Compensation Act and your industry risks. Construction companies benefit from insurers experienced with Michigan safety requirements, while medical practices need carriers familiar with health care workplace hazards.
- 5Evaluate your top provider options
Compare service quality across insurers to identify the best insurance for your business:
- Check claim processing speed, customer service scores and complaint history with Michigan's Department of Insurance and Financial Services.
- Confirm the insurer manages Michigan's 28-day employer-directed medical care period and handles treatment transitions smoothly.
- Ask about their track record with Michigan Workers' Disability Compensation Agency disputes.
- Find carriers offering return-to-work programs, safety training and experience with Michigan wage-earning capacity evaluations.
- 6Review and purchase your workers' compensation policy
Read policy terms closely, focusing on Michigan-specific coverage requirements, exclusions and renewal terms. Choose pay-as-you-go workers' comp if your payroll fluctuates with seasons, as this structure manages cash flow without large upfront payments. Confirm your policy includes all required Michigan benefits: 80% after-tax wage replacement and unlimited medical coverage.
- 7Reassess before annual renewal
Review business changes before your policy renews. Count current employees, examine filed claims and check your experience modification rate from CAOM.
Businesses change fast. New hires, additional locations or service expansions affect your coverage needs and costs. Update your insurer about changes to keep appropriate coverage levels without overpaying for protection you don't use.
Best Michigan Workers' Compensation Insurance: Bottom Line
NEXT, The Hartford and Simply Business rank as Michigan's top workers' comp insurers. Businesses should research each company's service quality, maximize discounts and select coverage that fits your budget.
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Michigan Legislature. "MCL Section 418.301." Accessed December 20, 2025.
- Michigan Legislature. "MCL Section 418.371." Accessed December 20, 2025.
- Michigan Legislature. "Workers' Disability Compensation Agency." Accessed December 20, 2025.
- Michigan Workers' Disability Compensation Agency. "2025 Weekly Benefit Tables." Accessed December 20, 2025.
- Workers' Compensation Research Institute. "WCRI: Michigan Costs per Workers' Compensation Claim Lowest of 17-State Study Group." Accessed December 20, 2025.