Best Workers' Compensation Insurance in Michigan (2023)

MoneyGeek evaluated insurance companies based on their average premiums, AM Best financial stability rating, NAIC complaint index and quote turnaround time. We found that Thimble offers the best balance of affordability, customer service and stability.

Workers' compensation protects small business owners if work-related illnesses and injuries occur. Private and public employers are required to get this coverage in Michigan.

Thimble stands out as Michigan’s best workers' compensation insurance. It received a MoneyGeek score of 93 out of 100 and has an average rate of $74 per month. Your rate may vary based on your industry, employee count and payroll amount.

For companies with 20 employees and an annual payroll of $1,250,000, Pie provides the most affordable workers' compensation insurance in Michigan at $64 per month. Your number of employees and payroll amount significantly impact your insurance premiums.

To find the top company for this category, we focused on identifying those with the lowest average workers’ compensation monthly premiums. Several factors can impact your premium, and the cheapest company for your business may be different. The table below shows the annual and monthly premiums for businesses employing 20 individuals, with the rankings based on the monthly premiums.

Pie provides the best workers' compensation insurance for businesses employing five individuals. With an average monthly premium of $28, it is affordable for small businesses with an annual payroll of $312,500. The size of your business, the number of employees and your payroll expenses significantly impact your premiums. Smaller businesses typically benefit from more budget-friendly insurance premiums.

Thimble provides the best workers' compensation insurance option for businesses with 100 employees at an average monthly premium of $308. We use an annual payroll of $6,250,000 to calculate the average rates for this category. The number of employees and payroll amount affect your premium, although payroll has a more significant impact on the overall cost.

In Michigan, the average monthly cost of workers' compensation insurance is $99. This is significantly lower than the national average of $168 per month. These rates are based on a policy with a $1 million total limit, $1 million per accident limit and $1 million per employee limit.

These limits are the maximum amounts your insurance will cover. The policy limit refers to the amount your entire insurance can shoulder. The per-accident limit applies to each claim, and the per-employee limit applies to each employee who may be sick or injured.

The table below shows the average workers' compensation insurance rates for Michigan businesses employing five, 20 and 100 individuals. Comparing these costs can help you understand how various factors impact workers’ comp rates. The number of employees and payroll amount influence premiums the most.

Factors, such as payroll costs, number of employees, class code and claims history, can influence workers' compensation insurance premiums.

Michigan’s workers' compensation requirements encompass several categories of employers and specify the number of employee working hours. Private employers with at least one employee working 35 hours or more or that employ at least three employees at a time must have workers’ comp insurance. Agricultural employers with at least three employees working 35 hours a week for 13 successive weeks or more must also have coverage. Those who employ domestic workers for at least 35 hours per week in their homes must also protect such workers with insurance. In addition, all public employers must have workers' compensation insurance.

Workers' compensation insurance is a safeguard, providing coverage for injuries that occur while employees are engaged in their professional functions. It offers protection even if the injury occurs outside the workplace, as long as the employee is performing a task that’s within their responsibilities. The coverage includes medical expenses and offers various benefits, including wage replacement, disability benefits, rehabilitation services and death benefits.

By offering wage replacement during recovery, workers' compensation insurance ensures that employees do not suffer income loss when they cannot work. It shields employers from financial liabilities that could result in losses or bankruptcy. Although employers hold the policy, workers' compensation insurance primarily benefits employees by providing them with financial support and access to necessary medical care.

The Workers' Compensation Agency oversees workers’ compensation in Michigan. If an employee sustains an injury or becomes ill while on the job, they should inform their employer immediately. Employers can help document the incident, provide assistance and report it to the proper avenues to get the employee coverage for their expenses.

To help you find the best insurance provider for your small business, MoneyGeek answered commonly asked questions about insurers, costs and coverage.