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.
Best Workers’ Compensation Insurance in Michigan
Best Workers’ Compensation Insurance 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.
How was this MoneyGeek score calculated?

- Offers affordable rates, with an average premium of $74 per month
- Received an AM Best rating of A+ for financial stability
- Can generate a quote quickly
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.

- Average premium of $64 per month
- The cheapest option for workers’ compensation insurance
- Provides a quote in less than 30 seconds
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.

- Average monthly premium of $105
- Has the lowest customer complaint index based on the NAIC report
- AM Best rating of A+ for financial stability
According to the NAIC national complaint index, The Hartford receives few customer complaints. You'll likely get the best customer service from this company. Its A+ rating for financial stability from AM Best indicates the company can meet its responsibilities. However, policies might come with a high price tag, as The Hartford is one of the most expensive companies we analyzed. Getting an online quote from this insurer takes a little over two minutes.

- Average premium of $126 per month
- AM Best rating of A++ for financial stability
- Quickly generates quotes
- Good customer service
biBERK received the highest rating for financial stability from AM Best. This rating shows that this company is the most capable of meeting its responsibilities to its clients, especially in the event of a claim. It also received a low rate of customer complaints, which indicates good customer service. Customers can obtain an online quote in a little over one minute. However, biBERK is one of the most expensive companies for workers’ compensation insurance.

- Average premium of $128 per month
- Receives a low rate of customer complaints based on the NAIC national complaint index
- High financial stability rating
Nationwide has one of the lowest average rates for customer complaints based on the NAIC national complaint index. It also received an AM Best rating of A+ for financial stability. This company is the most expensive option for workers’ compensation insurance, with an average monthly premium of $128. It also takes the longest to generate a quote, more than three minutes.
Cheapest Workers’ Compensation Insurance in Michigan
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.

Pie
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.
Best Workers’ Compensation Insurance for Micro Businesses in Michigan
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
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.
Best Workers’ Compensation Insurance for Midsize Businesses in Michigan
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
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.
How Much Is Workers’ Compensation Insurance in Michigan?
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?
Factors That Impact Workers’ Compensation Costs in Michigan
Factors, such as payroll costs, number of employees, class code and claims history, can influence workers' compensation insurance premiums.
Payroll costs
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.
Number of employees
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.
Employee class code
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.
Previous claims
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.
Do You Need Workers’ Compensation Insurance in Michigan?
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:
- A $1,000 fine; or
- Imprisonment for no less than 30 days nor more than six months; or
- Both a fine and imprisonment
What Does Workers’ Compensation Insurance Cover in Michigan?
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.
Workers’ Compensation Insurance Resources for Employees in Michigan
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.
Frequently Asked Questions About Workers’ Compensation Insurance in Michigan
To help you find the best insurance provider for your small business, MoneyGeek answered commonly asked questions about insurers, costs and coverage.
About Melissa Wylie

sources
- Department of Consumer and Business Services. "2022 Workers’ Compensation Premium Index Rates." Accessed May 30, 2023.
- Labor and Economic Opportunity. "Employer Frequently Asked Questions." Accessed May 30, 2023.
- Labor and Economic Opportunity. "Employer Insurance Requirements." Accessed May 30, 2023.
- Labor and Economic Opportunity. "Workers' Disability Compensation Agency." Accessed May 30, 2023.
- U.S. Bureau Of Labor Statistics. "IIF Latest Numbers." Accessed May 30, 2023.
- U.S. Bureau Of Labor Statistics. "State Occupational Injuries, Illnesses, and Fatalities." Accessed May 30, 2023.