Michigan Workers Comp Laws - High Risk & Specialty Lines

Workers' compensation insurance in Michigan is mandatory for both private and public employers with three or more employees or a single employee who works over 35 hours per week. If you sell insurance to high-risk companies such as the logging and forest industries, it makes sense to expand your insurance offering and include products designed for high-hazard business classes. 

It’s important to understand what specialty workers’ comp in Michigan covers, the underwriting process, and how coverage for higher-risk exposures helps you assist a broader clientele.

wHAT IS hIGH-rISK OR sPECIALTY wORKERS' COMP IN mICHIGAN?

High-risk or specialty workers’ comp is insurance provided to organizations presenting higher-than-average compensation claims. You can sell a variety of workers’ compensation insurance options to high-hazard clients with zero-premium deposits or pay-as-you-go options. Types of high-risk insurance products in Michigan include:

• Standalone Workers’ Comp
• Guaranteed Cost Options
• Large Deductible Options
• Dividend Plans
• Return-Of-Premium Plans
• Alternative Workers Compensation Plans

Seeking wholesale coverage will help you access more markets requiring high-risk or specialty workers’ comp and gain the expertise to provide the services these niche clients require.

WhAT DOES SPECIALTY WORKERS' COMP COVER?

Specialty workers’ compensation in Michigan ensures employees receive compensation to cover costs related to all reasonable and necessary medical treatments and some of the lost wages for work-related injuries and occupational diseases.

WHAT SPECIALTY workers’ comp in Michigan covers:

Specialty workers’ compensation coverage in Michigan includes the following:

• Medical costs, including but not limited to the initial emergency room visit, treatment, etc.
• Ongoing costs to cover required treatments, including rehabilitation programs, physical therapy, etc.
• Partial lost wages for the period employees can’t work due to their illness, injuries, and recovery
• Funeral expenses
• Your client’s costs to cover attorney’s fees, court costs, and settlements in cases where employees seek further compensation via a lawsuit

WHAT SPECIALTY WORKERS’ COMP IN MICHIGAN DOESN’T COVER

The costs not covered by Michigan workers’ compensation include:

• Injuries or illnesses not occurring or caused by work  
• Intentional injuries to qualify for compensation
• Injuries related to substance abuse or occurring when intoxicated on the job

WHAT IS THE UNDERWRITING PROCESS FOR HIGH-RISH WORKERS' COMP IN MICHIGAN?

At Novatae, we create high-risk workers’ comp insurance products designed for our clients requirements and ensure we weigh risks to develop effective insurance packages. Our approach includes the following steps:

• A review of the application
• Identifying carriers with the desire and services that fit the risk
• A risk assessment to decide whether your client should be covered   
• Recommendations on the type and condition of the policy 
• Providing solutions that will aid in the reduction of claim frequency
• The negotiation of insurance coverage terms for customized policies ideal for each agent, broker, and applicant
• Reviewing the financial strength of the risk

tYPES OF bUSINESSES tHAT nEED spECIALTY wORKERS cOMP IN mICHIGAN

LOGGING & FORESTRY

Logging injuries in Michigan are common, as the timber industry is one of the most dangerous jobs in the U.S. Workers operate large machinery and climb and fell trees, reaching heights as tall as some skyscrapers. Loggers are at risk of death and permanent injuries, including:

• Back injuries
• Traumatic brain injury
• Psychological issues, including depression, stress, and anxiety
• Broken bones
• Crashes
• Decapitation
• Tripping hazards
• Falls from trees
• Equipment-related accidents
• Overexertion
• Being crushed by falling trees

Construction Companies

Construction workers worldwide face daily perils, including injuries, disease, and fatalities, due to the dangerous conditions and equipment at construction sites.

Manufacturing Companies

Manufacturers cover a diverse range of products, with many presenting risks related to heavy machinery, toxic and hazardous materials/chemicals, dangerous conditions, and more.  

Agriculture Companies

Agriculture is another industry where constant exposure to risks includes everything from toxic chemicals found in pesticides and herbicides to heavy machinery and long hours starting in the early morning hours to extreme temperatures working outdoors.

Transportation Companies

High-traffic routes, long hours, long hauls, and dangerous conditions encountered on unfamiliar routes are just a few examples of the dangers posed when working for transportation companies.

Healthcare Companies

Healthcare workers are under more strain than ever due to illnesses such as COVID. Exposure to infectious diseases and hazardous materials, paired with long hours and the risk of unexpectedly violent or aggressive patients, contribute to the dangers of working in the healthcare industry.

There are also what are known as “tough classes,” which include workers in jobs such as:

Healthcare:

• Assisted Living
• Ambulances
• Emergency Transport
• In-Home Care
• Nursing

Construction:

• Bridge Painting
• Chemical Mixing
• Demolition
• Framing
• Roofers, Solar, and Sign Installers
• Steel Erectors

Transportation:

• Freight Handlers
• Garbage Operations
• Limo Services
• Rideshare
• Trucking
• Towing

Miscellaneous:

• Logging and Woodwork
• Manufacturing
• Staffing Agencies
• Tower Climbers
• Tree Pruning
• Warehouses

What are the Consequences of Not Having Workers’ Comp In Michigan?

If your clients operate without adequate coverage in Michigan, they can face fines starting at $1,000.00 per uninsured day or imprisonment for up to six months. However, the consequences become more severe each day they fail to comply, equaling two years’ worth of premiums paid for proper coverage. This important selling point can help your clients understand why it is worth investing in appropriate workers’ comp for high-risk specialty insurance products.

Call Our Wholesale Brokers If You Have High-Risk Workers in Michigan

At Novatae, our underwriters provide coverage for high-risk companies and tough classes. We can design the perfect high-risk and specialty labor workers’ comp insurance policies for your difficult-to-place clients with customized solutions designed to meet Michigan regulations.

For more information or to request a quote, click here.

This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.