It may come as a surprise, but you don’t have to own a factory to need workers’ compensation insurance. Michigan business owners from any industry should consider having it available to their employees. Why?
Let’s start with the increase in work-related accidents in Michigan. Statistics from the Michigan Department of Health and Human Services show that work-related accidents are responsible for more than 20,000 claims each year in the Wolverine state. The report also indicates that 2 to 3 Michigan workers die each week from work-related injuries or illness.
And when an employee gets hurt at work, business owners may be liable for the injuries. It is best to have workers’ compensation insurance to help you settle the associated costs. And if you are required to carry the insurance (because of the number of employees you have) and don’t—an employee can pierce your corporate shell to collect from owners personally.
So, let’s find out how workers’ compensation insurance can help if one of your employees is in a work-related accident.
Who Should Have Workers’ Compensation Insurance in Michigan?
Let’s start with who should consider adding workers’ compensation insurance. Workers’ compensation insurance laws in Michigan are different from other states. So, what works for a business owner in Ohio, Indiana or Wisconsin may not carry over.
Employers that should have workers’ compensation insurance include:
- A public employer
- If you own a business and have employees that work over 35 hours each week for 13 weeks or more
- If your business is in the agriculture industry and your employees work 35 or more hours each week and work for 13 weeks (or more)
- Private companies that have three or more people on staff
- Private companies that have one full-time or three or more people on staff
- If you pay people through a 1099 structure, the state of Michigan may consider them your employees.
If your company falls under any of the above categories, you should have workers’ compensation insurance to be on the safe side of the law in Michigan.
Benefits For Workers’ Comp
Employees have the right to receive certain benefits in Michigan depending on the injuries incurred. Below are the benefits you may have to pay for if your employee is in a work-related accident.
If an employee gets hurt at work and is out for at least 7 days, you may need to pay wage-loss benefits. If it lasts longer than 14 days, the employee may receive retroactive benefits for the first seven days. The employee may continue receiving benefits if earning capacity is cut.
When an employee gets injured at work, they may seek medical treatment. The employee will retain any medical records and use them when filing a claim. Your workers’ compensation insurance will pay the employee’s medical expenses, including medical rehabilitation costs.
Death Benefits and Burial Expenses
If your employee dies from a work-related injury or illness, you may have to pay the surviving members of the family death benefits and burial expenses. This could last for up to 500 weeks or longer if the employee has dependents or beneficiaries.
The Cost of Workers’ Compensation Insurance in Michigan
Understanding insurance costs will help you know what to sign up for. The cost of workers’ compensation insurance in Michigan varies. Many factors can affect premiums, including:
- Job risk
- Classification of employees
- Company’s payroll
- The number of employees
- Claim history
- Coverage limits
There are competitive workers’ compensation insurance rates in Michigan, which allows employers to find the coverage that best suits their business needs and budget.
Signing Up For Workers’ Compensation Insurance
To get workers’ compensation insurance in Michigan, you can approach private insurance providers within the state for a quote. And you also have an option to self-insure. This means that you will pay your employees from your self-established and funded program. If you are a small business, it is best to opt for signing up with a private insurance provider to minimize risks to your business operations in the future should an employee file a claim against you.
Autumn Insurance Offers Workers’ Comp Coverage
Protect your business from unforeseen consequences by adding workers’ compensation to your commercial insurance plan.
At Autumn Insurance, we understand all of the rules associated with workers’ compensation in Michigan. We’ll help you make informed decisions.
To learn more about your options and to take advantage of our cost-effective coverage plans, contact one of our experts. They’ll be happy to guide you through the process.