Updated: May 12, 2025
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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.
Why Trust MoneyGeek? We collected 677 workers’ compensation insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best workers’ compensation insurance companies for small businesses in Michigan.
Coverage costs and company information for workers' compensation insurance providers in Michigan were last updated in 2023.
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.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to score and rank insurers:
MoneyGeek used the following business profile to gather quotes:
Thimble is our pick for the best workers’ compensation insurance in Michigan. The company is one of the cheapest options, with an average monthly premium of $74. Getting an online rate takes less than two minutes, which is faster than others. On the flip side, Thimble has one of the highest rates of customer complaints based on the NAIC index. This can affect your experience when dealing with this insurer. Nevertheless, it can meet its obligations to clients based on its A+ financial stability rating from AM Best.
Pie is the second-best company for workers’ compensation insurance in Michigan. With an average premium of $64 per month, this company offers the most affordable rates of the companies we analyzed. Getting a quote can take only 28 seconds, significantly quicker than competitors. Pie has a high customer complaint index based on NAIC reports, indicating its customer service could use improvement. Although its AM Best financial stability rating is A-, it is the lowest among its competitors.
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.
With an average monthly premium of $64, Pie stands out for its affordable rates. It can also provide a quote in just 28 seconds, notably quicker than its competitors. NAIC reports show Pie has the highest customer complaint index, indicating subpar customer service. Its financial stability rating from AM Best is the lowest, implying a limited ability to meet its financial obligations to clients. Considering these factors, you might be sacrificing good customer service for the lowest rates with this company.
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 | $64 | $760 |
| Thimble | $74 | $883 |
| The Hartford | $105 | $1,265 |
| biBERK | $126 | $1,418 |
| Nationwide | $128 | $1,532 |
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.
Pie stands out for its low rates, with an average monthly premium of $28. It can also deliver a quote in 28 seconds, faster than its competitors. However, Pie has the highest customer complaint index, suggesting poor customer service, according to NAIC reports. It also received AM Best rating of A- for financial stability, which is lower than other companies we analyzed. This signifies a potentially restricted ability to meet its financial obligations.
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.
Thimble has an average monthly premium of $308, one of the most affordable options for midsize companies. You can get a quote from Thimble in less than two minutes. This company demonstrates a strong capacity to fulfill its obligations to clients, as evidenced by its A+ financial stability rating from AM Best. Thimble receives a high rate of customer complaints according to the NAIC national complaint index, so customer satisfaction may be subpar.
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.
How was this cost calculated?
To find the average cost of workers’ compensation insurance in Arkansas, we gathered quotes for three types of software development businesses:
| 5 | $45 | $526 |
| 20 | $99 | $1,172 |
| 100 | $409 | $4,833 |
Factors, such as payroll costs, number of employees, class code and claims history, can influence workers' compensation insurance premiums.
Increased payroll costs lead to higher insurance rates. Typically, insurers compute premiums based on every $100 of your payroll. The average rate insurers charge in Michigan is $1.00 per $100. This puts Michigan in 38th place among states, meaning a policy here is less expensive than in most states.
More employees can mean increased chances of illness and injury. As a result, insurers tend to charge larger companies higher rates and smaller companies lower rates.
The employee class code determines a company’s risk level. Your class code can affect the computation of your premium for every $100 of your payroll. Businesses in higher-risk industries pay higher premiums because there are more chances of injury among employees. For example, businesses in the construction industry may pay more expensive rates than those in the consulting industry.
Your rates may go up if you've had previous workers' compensation claims. In Michigan's private sector, there were 86,700 cases of nonfatal occupational accidents and illnesses in 2021. The private sector of the American economy reported 2,607,900 cases of nonfatal occupational illnesses and injuries.
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.
Employers face the following penalties if they fail to provide workers’ compensation insurance for their employees:
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.
Thimble offers the best workers’ compensation insurance in Michigan. It has affordable rates and good financial stability. However, the most suitable insurance option for your needs depends on your industry, number of employees, state requirements and other factors.
Pie offers Michgian’s cheapest workers’ compensation insurance, with an average premium of $64 per month. Factors such as the payroll amount, number of employees and location can affect your policy’s cost.
Michigan requires that private and public employers have workers’ compensation insurance.
The average cost of workers’ compensation insurance in Michigan is $99. This average rate is based on a policy with a $1 million total policy limit, $1 million per accident limit and $1 million per employee limit. Your actual rates may vary.
About Melissa Wylie
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.
Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.
