Some form of insurance protection for workers has been available in the state of Michigan since 1912. The Workers’ Disability Compensation Act was implemented to help cover the wages of employees who were injured on the job in a time when workplace safety was not always a top priority for employers. Today, workers’ compensation insurance in Michigan is required by most employers. It covers employees for wages and medical costs, as well as employers against false or unreasonable claims made by employees. We have put together the basic facts of workers’ compensation insurance below to help know if you need it and where to get it. As always, we are available to give advice if you want to know more.
Coverage for All Kinds of Workplace Injuries
Workers in many industries face danger in the course of carrying out their jobs. This includes construction workers, restaurant workers, health care workers, outdoor workers, any job that requires the use of chemicals or the operation of equipment and vehicles. However, accidents can happen in any workplace and may not involve a single incident. Repetitive stress injuries like carpal tunnel syndrome and breathing issues from prolonged exposure to a work environment are also covered by workers’ compensation insurance. Even stress-related illnesses are beginning to be recognized as workplace injuries in some jurisdictions. Whatever the cause, workers’ compensation insurance is important when injuries result in significant time off work and medical treatment.
Helping Employees and Employers
Workers’ compensation insurance coverage replaces part of the employee’s lost wages and medical costs when they cannot work while recovering from an injury. This ensures that workers are not unfairly penalized for an accident at work and ensures that they can take the proper time to adequately recover before attempting a return to work. By replacing some of the lost income, businesses do not have to choose between paying the injured employee and paying someone else to do the work. In addition, workers’ compensation insurance covers the employer’s costs if an employee sues after an accident.
Do I need Workers Compensation Insurance?
In Michigan, the majority of businesses are required to carry worker’s compensation insurance.
- Businesses with 3 or more regular employees (full or part-time)
- Businesses with 1 employee working more than 35 hours a week for more than 13 consecutive weeks
- Agricultural businesses with 3 or more employees working more than 35 hours per week for more than 13 consecutive weeks
- Individuals or families employing domestic help for more the 35 hours per week, and 13 weeks consecutively need insurance.
- All public employers
Where to Get Worker Compensation Insurance
Injury claims are handled by the state-managed Workers Compensation Agency (WCA). However, employers purchase workers’ compensation policies from private insurance companies. Minor accidents and claims are often managed through the insurance provider. However, more serious accidents and those involving death or major injury require a different process involving WCA. You can find out more information about reporting and claims on the Government of Michigan’s website.
Workers’ compensation insurance is an important protective measure for both employees and employers, and it is mandatory for most businesses. Not having the appropriate insurance can result in steep fines and even jail time for employers. If you are unsure about your need for workers’ compensation insurance, feel free to get in touch with us to discuss your business and employees.
