Workers’ compensation insurance is mandatory in Michigan for employers who have one employee working 35 hours or more per week, or three employees at any time during the year. Independent contractors are not employees and so are excluded from the employee count to determine whether workers’ compensation is needed. State law defines the benefits provided by workers’ compensation, and all insurance carriers that sell this policy must provide the same benefits, by law.
Workers’ compensation insurance provides a percentage of wages lost due to a temporary or permanent work-related disability. It also provides compensation for specific types of losses, such as loss of a limb or digit. Health care costs, including treatments and medications, stemming from the work-related injury are also provided. Vocational rehabilitation, the cost of home modifications due to a work-related injury, and death and funeral benefits are also part of the coverage package. Workers’ compensation pays benefits regardless of who was at fault for the work-related injury. In return, employees give up the right to sue employers for their injuries.

An employee who has been injured at work must give notice of the injury to the employer within 90 days but has a two-year period in which to file a claim. Employers cannot retaliate against an employee for filing a workers’ compensation claim but are not required to hold a position open for the injured employee until he or she can return to work. If a claim is denied, the employee can file for mediation or a hearing with a workers’ compensation magistrate. Wage benefits are calculated on the average weekly wage of the highest 39 weeks of the last 52 weeks of employment, and are generally capped at 80% of the after-tax value of the average weekly wage.

For an employer, the cost of the workers’ compensation premium represents a solid value. Since injured employees are largely barred from filing lawsuits against employers, the risk of a monetary award to an injured employee is negligible. Because all workers’ compensation policies are the same, the distinguishing features to consider are the premium cost and the service you receive from your insurance agent, as well as the service you receive from the insurer should a claim arise.

Workers’ compensation premiums are based on total payroll by job category for the practice’s employees. Different job categories have different rates. In addition, the practice’s claim history is a factor.

The MDA-endorsed workers’ compensation carrier is Frankenmuth Insurance. Because of outstanding experience in the MDA group, policyholders have enjoyed lower rates for each of the last six years. Many workers’ compensation policies renew Jan. 1, so now is a good time to review your coverage and request a quote.
Please contact MDA Insurance at 800-860-2272 and ask for the commercial lines department to start the quote process. Or visit mdaprograms.com/buy-now and click on workers’ compensation to submit a quote request online.