WORKERS’ COMPENSATION GUIDANCE FOR MICHIGAN EMPLOYERS
Workers’ Compensation Insurance in Michigan
Coverage, Classification, Payroll, and Audits All Matter
Workers’ compensation can provide medical, wage-replacement, and rehabilitation benefits after covered work-related injuries or illnesses. For employers, the policy also involves classification codes, payroll estimates, ownership details, subcontractors, experience modification, loss history, and the final audit. We help you understand those moving parts before they become an unexpected bill.
Confirm Coverage Requirements
Classify the Work Correctly
Prepare for the Audit
Improve Long-Term Results
Workers’ Compensation Is More Than a Rate per $100 of Payroll
Michigan requires employers subject to the Workers’ Disability Compensation Act to secure benefits, most often through an insurance policy. Coverage requirements depend on employee counts and hours, business structure, ownership, and available exclusions. We help gather the facts and encourage employers to confirm unusual situations with the state or qualified legal counsel.
Premium is commonly based on payroll assigned to classification codes. The duties employees actually perform matter. An underestimated payroll, a new operation, uninsured subcontractors, or an incorrect class code can produce a large adjustment at audit. A clean submission and regular updates during the policy term make the process more predictable.
Employee Classifications and Payroll
We review job duties, work locations, estimated payroll, overtime rules, and changes in operations. Office employees, field employees, drivers, and owners may be treated differently depending on the facts and applicable rules.
Owners, Officers, and Entity Structure
Corporations, LLCs, partnerships, and sole proprietors can have different inclusion or exclusion questions. We help identify the forms and documentation the carrier may require instead of assuming an owner is automatically included or excluded.
Subcontractors and Certificates
Payments to uninsured subcontractors can affect a workers’ compensation audit. We discuss certificate procedures, contractor controls, and recordkeeping so the business can support how labor was classified.
Experience Modification and Loss Control
Claims history, payroll, classifications, and expected losses can influence an experience modification factor. Timely claim reporting, return-to-work planning, safety practices, and accurate records can support better long-term results.
Local Guidance Before and After a Third-Party Audit
Customers First Insurance Group works from Clear Creek Plaza in Chesterfield and serves New Baltimore, Macomb County, Metro Detroit, and businesses throughout Michigan. Owner Michael Vereecke has worked in insurance since 2009 and holds the Commercial Lines Coverage Specialist (CLCS) designation.
Workers’ compensation audits are performed independently by third-party auditors. We can help you understand what records may be requested, answer general audit-related questions, and review the results with you afterward. We cannot participate in the audit itself, complete it for you, or communicate with the auditor on your behalf.
Beyond the audit, we help employers compare carrier requirements and service—not only premium. That includes claim-reporting expectations, loss-control resources, payroll and operational changes, certificates, and how workers’ compensation coordinates with general liability, commercial auto, and umbrella coverage.
Michigan Workers’ Compensation Questions
Which Michigan employers generally need workers’ compensation coverage?
Michigan generally requires coverage for private employers that regularly employ one or more people for at least 35 hours per week for 13 weeks during the preceding 52 weeks, or that regularly employ three or more employees at one time, including part-time employees. Other rules apply to public, agricultural, domestic, and different business entities, so confirm your specific situation.
Why does a workers’ compensation policy have an audit?
The starting premium is based on estimated payroll, classifications, and other exposures. The audit compares those estimates with the actual policy-period records and may result in additional premium or a return premium.
Can uninsured subcontractors affect my premium?
They can. A carrier may request certificates and payment records and may treat uninsured subcontractor labor as an exposure at audit. Procedures vary, so collect documentation before work begins and keep it organized.
What should I report during the policy year?
Tell your agent about material payroll changes, new job duties, new states, acquisitions, new locations, and changes in subcontracted work. Updating the policy during the year is usually easier than discovering a major difference at audit.
Can a Michigan business use the WC-337 Notice of Exclusion instead of buying a policy?
Only in limited circumstances. Michigan states that an employer may use the WC-337 when all employees are eligible for exclusion under the law and no subcontractors are used. If only some individuals qualify, the business may still need a workers’ compensation policy. The exclusion is not valid unless the Workers’ Disability Compensation Agency has stamped it as filed. The form is not available online; review the official Michigan WC-337 Notice of Exclusion page for eligibility guidance and agency contact information.