As a business owner in Michigan, you most likely know that Workers Compensation is required by law to protect your employees, but what about protecting you? Does Michigan Workers Comp extend to you as the business owner? Let’s unravel the intricacies of Work Comp in Michigan to ensure you’re adequately protected.
It’s important to state that in Michigan, a sole proprietor cannot receive workers’ compensation benefits under a policy issued to the sole proprietorship, so this blog pertains to owners, partners or shareholders of an LLC or Corporation.
Owners have the option to opt into the Work Comp coverage. This decision comes with potential advantages. By including yourself, you ensure financial protection in case of a work-related injury or illness. This coverage can be crucial for maintaining your income and covering medical expenses during recovery.
If you choose to not include yourself for workers compensation, another alternative is to purchase a disability income policy. The benefit of the personal disability income policy is that it protects you 24/7, not just while working in your business.
It is also important to know that if you own 10% or more of a company, you must sign a form to either exclude yourself or include yourself. If you do not exclude yourself, the insurance company can automatically include your wages on the annual audit.
As with all insurance related topics, we recommend you speak with an independent agent to understand your legal requirements for Michigan workers compensation insurance protection.
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Written by Linda M. Fisher, AAI, CIC, CPRIA, CPRM, LIC, LUTCF – Agency Founder & Owner