Michigan does not issue one statewide general contractor license for all construction, so no single license forces you to buy insurance. The main state credential is the Residential Builder or Maintenance and Alteration Contractor license from the state's Bureau of Construction Codes, and it does not by itself require workers' comp. Comp is required separately under the Worker's Disability Compensation Act once you meet the coverage test or use an uninsured subcontractor. So licensing and comp are two different tracks.
Who this is for: Michigan builders and tradespeople sorting out licensing and the insurance their work actually requires.
The short version
- Michigan licenses Residential Builders and Maintenance and Alteration Contractors through the Bureau of Construction Codes, not one blanket general-contractor license.
- Getting that license takes 60 hours of prelicensure classes and a passing exam, plus a Michigan place of business.
- The builder license does not itself require workers' comp as a condition of licensure.
- Comp is still mandatory under state law once you meet the 3-at-one-time or 35-hours-for-13-weeks test.
- Skilled trades like electrical, plumbing, and mechanical are licensed separately by the state.
What Michigan actually licenses
Michigan's construction credential is not a catch-all general-contractor license. The Bureau of Construction Codes, part of the state licensing department, issues the Residential Builder license and the Maintenance and Alteration Contractor license, and getting one means completing 60 hours of approved prelicensure education, passing an exam, and keeping a Michigan place of business. Skilled trades, including electrical, plumbing, and mechanical work, are licensed separately by the state. None of these licenses, by their own terms, makes you buy workers' comp; that duty comes from a different law entirely.
| Type of work | State license? | Workers comp |
|---|---|---|
| Residential building | Yes, Residential Builder license (Bureau of Construction Codes) | Required once you meet the coverage test (MCL 418.115) |
| Repairs and alterations | Yes, Maintenance and Alteration Contractor license | Required once you meet the coverage test |
| Electrical, plumbing, mechanical | Yes, separate trade licenses | Required once you meet the coverage test |
| Any contractor hiring subcontractors | Depends on the trade | Also exposed for an uninsured sub (MCL 418.171) |
Where the comp requirement really comes from
Even though the builder license does not tie insurance to your permit, workers' comp still reaches you the moment you meet Michigan's coverage test, and contractors carry a second exposure that catches people off guard: under MCL 418.171, if you hire a subcontractor who has no coverage, you can be responsible for that sub's injured workers, and can then try to recover what you paid. That is why collecting a current proof of coverage from every sub, before they start, protects you. Reports that the state builder license requires a set amount of general liability or a surety bond are inconsistent, so confirm any such requirement directly with the licensing bureau and your local municipality.
A Novi example
Illustrative, not a quote. A Novi electrician holds a state electrical license and runs the business with two employees. There is no statewide general-contractor license involved, but because two employees plus the owner are working at one time, Michigan requires workers' comp under the Act, and the general contractors he works for require proof of it before he sets foot on site. When he subcontracts a low-voltage job to another shop, he collects that shop's proof of coverage first, so an uninsured sub's injury cannot become his responsibility under MCL 418.171. We handle his employee coverage and keep his certificates ready. See our workers comp for electricians page.
Real questions Michigan owners ask
Does Michigan have a statewide general contractor license?
Not a single catch-all one. Michigan licenses Residential Builders and Maintenance and Alteration Contractors through the Bureau of Construction Codes, and licenses skilled trades separately, rather than one blanket general-contractor license.
Does the Michigan builder license require workers comp?
No. The Residential Builder and Maintenance and Alteration Contractor licenses do not themselves require workers comp. That duty comes separately from the state's comp law once you meet the coverage test.
What does it take to get a Michigan builder license?
Education and an exam. You complete 60 hours of approved prelicensure classes, pass the licensing exam, and keep a Michigan place of business, through the Bureau of Construction Codes.
Do I need workers comp for my construction business?
Once you meet the test, yes. Construction is covered by the same rule as any employer, so a policy is required once you have 3 people working at one time or one worker at 35 or more hours for 13 weeks.
Am I responsible for an uninsured subcontractor?
You can be. Under Michigan law, a contractor who hires a subcontractor with no coverage can be liable for that sub's injured workers, so collect proof of coverage from every sub before they start.
Does the state license require general liability or a bond?
It is unclear and inconsistent. Reports of a required general liability amount or surety bond for the builder license vary, so confirm any such requirement with the licensing bureau and your local municipality.
Why Michigan owners choose Morrow
- We shop the right market for you. In Michigan you buy workers' comp on the open market from any private carrier licensed in the state, because Michigan has no state fund; if no carrier will take you, the Michigan Workers' Compensation Placement Facility (the assigned-risk plan) is the guaranteed fallback, so we can shop your rate freely and still keep a backstop for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Michigan guides
Every Michigan business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Michigan (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Do I need workers comp for 1099 contractors?
- What workers comp does not cover
- Michigan electrician workers comp
This guide is general information, not legal advice. Michigan rules and penalty amounts can change, so verify current requirements with the Michigan Workers' Disability Compensation Agency (WDCA) or a licensed advisor before you rely on them. Last updated: July 2026.