Workers Compensation Insurance
Protect your Michigan business and your people with comprehensive workers' compensation coverage.
Protecting Your Business & Your People: A Guide to Workers' Comp
Running a business in Michigan comes with its own set of rewards and challenges. Whether you're managing a team in Lansing, a retail shop in East Lansing, or a crew on a job site in Haslett, you know that accidents can happen. What if an employee slips on a wet floor, strains their back lifting, or gets hurt using equipment? Workers' Compensation Insurance isn't just a state requirement for most businesses with employees; it's a vital safety net for you and your team.
The Real Risks for Michigan Businesses
Scenario: The Delivery Driver's Slip
Imagine your most trusted delivery driver, making a routine drop-off in an office park, slips on an unexpected patch of ice and breaks their wrist.
Without the right protection, a single workplace injury could lead to overwhelming medical bills and lost wages for them, and devastating financial liability for your business.
Scenario: The Construction Fall
Picture one of your carpenters on a new construction site loses their footing on scaffolding and suffers a serious fall.
This coverage ensures your injured employee gets the care and financial support they need to recover, while also protecting your business' finances and reputation from a potentially crippling lawsuit.
Scenario: The Kitchen Burn
For restaurants, a common risk could be a burn from a grill or a slip in the kitchen.
Workers' comp is how you take care of your team and safeguard everything you've built.
Don't Forget Occupational Illnesses
But it's not just about sudden accidents. Occupational illnesses, like a respiratory condition from long-term exposure to dust in a workshop, are also covered.
What Does Workers' Comp Actually Cover?
Think of workers' comp as a promise to take care of your people when they need it most. It typically includes:
Medical Expenses
Covers doctor visits, hospital stays, surgery, and physical therapy.
Lost Wages
Replaces a portion of the employee's income while they are unable to work.
Rehabilitation Costs
Pays for services to help them return to work.
Disability Benefits
Provides ongoing payments if the injury results in a permanent disability.
Death Benefits
Offers financial support to the family if a work-related incident is fatal.
What's Not Covered?
A common point of confusion is travel. Generally, an employee is covered if they are acting on your behalf, like the delivery driver making a run. However, the daily commute to and from the fixed workplace is typically not covered.
It's important to know what's not covered, like injuries from fighting, being under the influence, or when an employee is off the clock.
Key Michigan-Specific Considerations
Michigan has unique workers' compensation laws that every business owner should understand.
Exclusive Remedy
A key feature is that it's the exclusive remedy, meaning employees generally can't sue you for a workplace injury if they are receiving workers' comp benefits.
Wage-Loss System
The state also operates a "wage-loss" system, which calculates benefits based on an employee's ability to earn after an injury, not just the injury itself. Navigating these rules can be complex, but we're here to help you get it right.
The 90-Day Rule
Another critical Michigan rule involves the "90-Day Rule." For the first 90 days of disability, you have the right to direct the injured worker's medical care to a clinic or physician of your choice. This allows you to manage care with providers you know and trust. After 90 days, the employee may choose their own treating physician. Understanding these procedural details is key to effectively managing a claim.
Understanding the Cost & Value for Your Michigan Business
You might be wondering about the cost. In Michigan, premiums aren't one-size-fits-all. They are calculated based on a few key factors:
- Your Payroll: The total size of your payroll.
- Your Industry: The level of risk associated with your type of work (e.g., construction has higher rates than a retail store).
- Your Claims History: A strong safety record with few to no claims can significantly lower your costs.
But there are other factors, too. For instance, a business that invests in a formal workplace safety program, documents it thoroughly, and provides proper equipment training can present a much lower risk to an insurer, potentially qualifying for better rates. We can advise you on these proactive steps.
Many business owners also don't realize that your premium is an estimate based on projected payroll. At the end of your policy period, an audit is conducted to reconcile the estimated premium with your actual payroll. Keeping precise payroll records is essential for this process.
While it's an expense, the value is immense. It's an investment in your business's resilience, your employees' well-being, and your own peace of mind.
Your Questions, Answered
Let's Protect Your Business Together
Get a clear, personalized quote today and rest easy knowing your team and your livelihood are secure.