Sources reviewed October 27, 2026 · Confirm current rules with the agency
When coverage is required
Michigan generally requires coverage if you regularly have three or more employees, including part-time workers. You may also need coverage with just one employee if that person worked at least 35 hours a week for 13 weeks in the past 52 weeks. Keep track of hours and weeks worked, not just how many people you have.
Owners, contractors, and exceptions
Farm work and household work have their own tests. The state describes a farm rule based on three workers who meet the hours and weeks test, and a household rule based on one worker. Owner opt-outs need their own review. Do not assume the three-employee rule is the only way you can need coverage.
If an employee is injured
Get the worker prompt, reasonable medical care and tell your insurer about the injury. Form WC-100 must be filed with the state and your insurer if the worker is disabled for more than seven days in a row, dies, or suffers a specific loss, such as losing a limb. Keep tracking time off after the first report, and send updates if the case later needs to be reported.
Operating without coverage
Michigan says an employer that does not carry required coverage can be fined $1,000, jailed for 30 days to six months, or both. Each day without coverage counts as a separate offense. The state can ask a court to stop the company from employing anyone until it gets coverage. An injured worker can also sue an uninsured employer in civil court. Michigan does not require a workplace poster, but the state encourages you to post its worker rights poster.
How to arrange coverage
Michigan lets you buy a policy from a licensed insurer or get approval to self-insure. Watch staffing changes during the year so you notice if you meet the hours-based test. Ask your insurer who files Form WC-100 and handles wage details, and keep a record of all claims and reports for follow-up.
Benefits and return-to-work planning
A work injury can lead to medical care, time off work, a lasting disability, or benefits for family members if a worker dies. Who qualifies, waiting periods, how wages are figured, and benefit limits all depend on state law and the facts of the claim. Ask your insurer which benefits it is looking at and what records it needs. Go by the doctor's work limits, not your own guess about what the worker can do. If you can offer lighter work, describe the duties and hours clearly and plan it with the doctor and your insurer.
Preparing an accurate cost estimate
Gather payroll by job and location, a description of each type of work, details on working owners, subcontractor records, and your past claims. Ask the insurer to confirm your job classes, how the rate is figured, any experience modifier, the minimum premium, fees, and audit terms. This site's calculator uses a base rate that you enter. It does not give a state-approved rate or a real quote. Compare offers using the same numbers, and track staff and work changes during the year so the final audit is easier.
Forms, posters, and notices
These links go straight to Michigan’s official forms. Your insurer can often send a poster with your policy details already filled in.
Weekly benefit limits
These limits cap the wage replacement checks an injured worker can get. Medical care is paid separately. Limits change every year, so check the source for the latest figures.
- Maximum
- $1,201 a week
- Minimum
- $333.47 a week
- Applies to
- Injuries in 2026
Check a contractor’s coverage
Michigan's agency explains insurance rules for general contractors and subcontractors. Ask for a certificate of insurance and confirm it with the insurer.
Owner exemptions and elections
Owner choices are usually made through your insurance policy. Ask your insurer which owners are included or left out, and get the answer in writing.
Frequently asked questions
Is workers' comp required in Michigan?
Yes for private employers with three or more employees, or with one employee who works at least 35 hours a week for 13 weeks. Agricultural and household employers have separate rules.
Do business owners need workers' comp in Michigan?
Owner exclusions and opt-out choices need separate review with the insurer.
How long does an employee have to report a work injury in Michigan?
Employees should report injuries quickly. The employer files Form WC-100 for disability of seven days or more, a specific loss, or a death.
What happens if a Michigan business doesn't have workers' comp?
Michigan can fine an uninsured employer $1,000 and impose 30 days to six months in jail, with each day a separate offense. Injured workers can also sue.
How do I get workers' comp insurance in Michigan?
Buy from a licensed insurer or qualify to self-insure.
How much does workers' comp cost in Michigan?
Cost depends mostly on your job class codes, the payroll in each class, your experience modifier, and the insurer's rates and minimum premium. Ask a licensed insurer or agent for the base rate for your class code in Michigan, then use this site's calculator for a rough estimate. Your final premium is set at the yearly audit.
Your next steps
Official sources & further reading
Michigan WDCA: employer coverage FAQsMichigan WDCA: employer reporting resourcesThis summary is for learning, not legal advice. Exceptions and changes may apply. If anything here differs from the official agency or the law, they are what count.