Best Workers' Comp Insurance in Michigan (2026)

Michigan’s rules depend on both headcount and hours worked. You'll need coverage if you employ at least three people at once, including part-time workers. Coverage also becomes mandatory when one employee works at least 35 hours per week for 13 weeks during a 52-week period. Different thresholds apply to agricultural and domestic workers, so check the state’s workers’ comp  insurance requirements against your staffing arrangement.

Michigan’s Compensation Advisory Organization of Michigan (CAOM) maintains the class codes used to describe different work activities. A class code connects an employee’s duties with the level of injury risk insurers expect from that work. Review assignments with your agent or CAOM’s class code lookup tool, particularly when office employees and field crews perform clearly different jobs.

Separate payroll by class code and gather loss runs, which show the claims made under earlier policies. You should also identify owners or family members included in your workforce. Some businesses can exclude qualifying individuals through Form WC-337, but the exclusion counts only after the Workers’ Disability Compensation Agency stamps it as filed. Michigan limits its use to businesses whose workers all meet the statutory criteria, so confirm your eligibility before removing anyone from a quote.

Michigan lets insurers set their own workers’ compensation rates, so two carriers can price the same payroll differently. Compare business insurance quotes using matching class codes and coverage details. If voluntary insurers decline your business, you can apply through the Michigan Workers’ Compensation Placement Facility, the assigned-risk program created for employers unable to secure coverage elsewhere.

Look at what happens after an employee gets hurt, not only what you pay each month. Michigan recommends comparing carriers’ claims service and loss-control support, which helps you identify workplace hazards before they cause injuries. Ask who will manage your claims and how quickly the carrier can connect an injured employee with medical care. The state’s employer guidance specifically encourages businesses to weigh these services alongside price.

After binding the policy, give managers clear instructions for sending every workplace injury to your carrier, even when the employee misses little or no work. You must also file Form WC-100 with the state when an injury causes death, a specific loss such as the loss of a body part, or at least seven days of disability. Michigan’s reporting guidance explains which incidents require the form.

Compare the insurer’s payroll audit with your wage records before accepting the final premium. Check for employees placed under the wrong class code and make sure any ownership or staffing changes appear correctly. CAOM also produces experience modification factors, which adjust eligible employers’ premiums based on their claims history. Reviewing that factor with your agent can uncover incorrect claim or payroll data before it affects another policy term.