Commercial · Workers’ Compensation
Workers’ compensation insurance for Michigan employers
Workers' compensation pays medical care, lost wages and rehabilitation for employees hurt on the job, and Michigan requires most employers to carry it. We can help you set up the policy and talk through how claims affect your future premium.
Schedule a Coverage ReviewWhat is workers’ compensation insurance?
Workers’ compensation is insurance an employer buys to cover employees who suffer a work-related injury in the course of their employment. It pays the injured worker’s medical care, a portion of lost wages while they cannot work, and vocational rehabilitation when it is needed to get them back to work. If a worker dies from a job-related injury, it pays death benefits to dependents. Michigan requires most employers to carry it.
What does workers’ compensation cover in Michigan?
Michigan workers’ compensation provides four main benefits for job-related injuries: medical benefits for all reasonable and necessary care, wage loss benefits while the employee is disabled, vocational rehabilitation to help them return to work, and death benefits for dependents if the injury is fatal. Medical benefits continue as long as the worker needs care for that injury, and wage loss benefits can continue as long as the disability lasts.
| Benefit | What it pays | How long it lasts |
|---|---|---|
| Medical | Medical, surgical, hospital, dental, nursing and chiropractic care, plus items such as hearing apparatus and crutches | As long as care is needed for the work injury |
| Wage loss | A share of the employee’s after-tax average weekly wage, subject to a state maximum | As long as the worker is disabled, subject to Michigan rules |
| Vocational rehabilitation | Counseling, job modification or placement to return the worker to suitable employment | Until a return to work is practical |
| Death benefits | A burial allowance and weekly income for dependents, within state minimums and maximums | Set by Michigan law; generally ends when dependency ends |
How are workers’ comp wage loss benefits calculated in Michigan?
Michigan wage loss benefits are calculated at 80 percent of the injured employee’s after-tax average weekly wage, based on the highest 39 of the last 52 weeks of earnings. The weekly rate is capped at a state maximum tied to the state average weekly wage, and the rate is set by the date of injury. Benefits are paid while the worker remains disabled, which can mean many years for a serious injury.
How can employers lower workers’ compensation costs after an injury?
Disability management is the biggest lever. Getting an injured employee back to productive work as soon as it is medically practical, even with restrictions, reduces wage loss costs that drive future premium. It also helps the employee feel functional again. Vocational rehabilitation supports this by bringing in counselors who help redesign a job, create a modified assignment, or place the worker in suitable employment at comparable pay.
- Report injuries to us and the carrier promptly.
- Keep in contact with the injured employee throughout recovery.
- Identify light-duty or modified work before an injury happens.
- Work with the carrier’s rehabilitation resources rather than around them.
Is workers’ compensation required in Michigan?
Yes. Workers’ compensation is a state-mandated coverage for most Michigan employers. The system exists so employees injured on the job can get proper medical care for as long as they need it and recover to working condition, while the employer is protected by a defined set of benefits. Whether a specific business must carry it depends on its employees and structure, so confirm your obligation with us before relying on an exception.
- Commercial Auto — Employees injured in a vehicle on the job are generally a workers’ comp claim first
Related: Commercial Auto · General Liability · Business Owners Policy · Commercial Umbrella · Michigan Business Insurance
This page is educational and does not alter any policy. Benefits are determined by Michigan law in effect on the date of injury and by the actual policy issued by the insurer.