Why Do I Need Workers Comp Insurance? (Michigan Workers Compensation Insurance Guide)

Why Do I Need Workers Comp Insurance? (Michigan Workers Compensation Insurance Guide)

If you’re a business owner in Michigan and you have employees, one of the most important insurance policies you need to understand—and carry—is workers compensation insurance. It’s not just a good idea; it’s the law.

Workers Comp Is Required by Law in Michigan

In Michigan, employers are legally required to carry workers’ compensation insurance if they have one or more employees working 35 hours or more per week, or three or more employees at any time, regardless of the number of hours worked. This includes part-time, full-time, and even seasonal workers.

The Michigan Workers' Disability Compensation Agency offers a helpful overview of the requirements and benefits:
🔗 Michigan Workers Comp Overview (PDF)

What Does Workers Comp Insurance Cover?

Workers compensation insurance is designed to provide support when an employee suffers a work-related injury or illness. This coverage includes:

• Medical expenses – hospital visits, physical therapy, medications, surgeries, etc.
• Wage replacement – a portion of the employee’s lost wages while they recover
• Rehabilitation services – to help injured employees return to work
• Death benefits – in the tragic event of a workplace fatality, benefits may be paid to the employee’s dependents

Why Employers Need Workers Compensation Coverage

Carrying workers comp is about more than just legal compliance. It protects you, the business owner, from serious financial and legal consequences:

• Avoids paying out-of-pocket for costly medical bills and lost wages
• Reduces the risk of lawsuits from injured employees
• Helps maintain trust and morale among your team
• Demonstrates that you value the safety and well-being of your staff

Protect Your Business and Your Employees

Running a business comes with risks, but not having the right coverage shouldn’t be one of them. Workers compensation insurance offers peace of mind, knowing that both you and your employees are protected if an accident or illness happens on the job.

Whether you're in construction, retail, healthcare, or any other industry, making sure you’re properly insured is a foundational part of building a stable and responsible business in Michigan.

Need help reviewing your workers comp coverage?

📞 Contact us today to make sure your business is properly protected and compliant with Michigan law.