It’s no secret that we love insurance here at Talage, and odds are you don’t (that’s ok - we can still be friends). But, we do know you love your business and want to protect it, so we’ve provided information about insurance in Michigan. Our advice: protect what you’ve built and carry both workers’ comp and liability insurance.
What kind of business insurance do I need in Michigan?
Workers’ Compensation Insurance in MichiganA private employer must carry Workers’ Compensation insurance if they have three or more employees at any one time (including part time), or if they employ one or more workers at 35+ hours/week for 13 or more weeks. Our advice - if you have employees, you should get a workers’ compensation insurance policy to protect your business.
Workers' compensation insurance helps protect your business from the costs associated with an employee injured at work. Typically, it would pay for medical bills and recovery costs, as well as some of the missed wages. In the event of a death, workers’ compensation insurance can help with the costs of the funeral or death benefits to the employee’s family. Workers’ comp can also help cover legal expenses if an employee sues the business over an injury that isn’t covered by the policy.
General Liability Insurance in MichiganGeneral liability insurance isn’t required by law, but we believe every business should protect itself with liability insurance. It pairs nicely with workers’ compensation insurance because it can cover expenses for non-employee injuries that occur at your business. What’s more, it covers product liability, libel/slander, and even damage you may cause to somebody else’s property. If your business is sued your liability insurance policy may cover you for legal expenses (both legal fees and settlements). If you like tightrope walking without a net, you’re probably not the type that would want liability insurance. For everybody else, this policy (sold together as a business owner’s policy - BOP) helps protect the business you’ve built.
Property Insurance in MichiganProperty insurance isn’t required by law either, but if you have a landlord, they’ll likely require that you carry property insurance. It typically comes bundled with liability insurance as a business owner’s policy (BOP). This portion of the bundle protects your building and its contents from terrifying things like fire, explosions, burst water pipes, storms, and theft. Coverage against other natural disasters typically need to be added on to the policy.
What do I need to know about Workers’ Comp Insurance in Michigan?All states have unique exemptions to their Workers’ Compensation insurance laws. We’ve outlined a few of the unique aspects of the state of Michigan, but for a complete and updated listing, be sure to visit the Michigan Workers' Compensation Agency website.
- Employees of the federal government (such as postal workers, employees at a veterans administration hospital, or members of the armed forces) are covered by federal laws. People who work on interstate railroads are covered by the Federal Employers Liability Act. Seamen on navigable waters are covered by the Merchant Marine Act of 1920, and people loading and unloading vessels are covered by the Longshore and Harbor Workers' Compensation Act. Virtually all other workers and employers are subject to Michigan's law.
- All public employers are required to provide Workers’ Compensation coverage.
- A company may self-insure with permission from the Workers’ Compensation Agency.
- Sole proprietors aren’t included in Workers' Compensation coverage. Partners, LLC members, and corporate officers are included in coverage (but can elect to decline coverage).
- There is a competitive state fund in Michigan, provided by The Michigan Workers’ Compensation Placement Facility.
- Failure to carry Workers’ Comp insurance in Michigan is punishable by fines and/or jail time.
Who can provide workers’ compensation coverage in Michigan?You can obtain Workers’ Comp and Liability insurance from a licensed insurance company. We can help find you a policy right here on the Talage website! You can shop and compare quotes instantly online and purchase a plan in only 12 minutes.
If you’re unable to find a carrier, you can purchase coverage through the Workers’ Comp State Fund: The Michigan Workers’ Compensation Placement Facility