A Michigan corporation with employees must carry workers' comp once it meets the state's test (3 or more people working at one time, or one person at 35 or more hours a week for 13 weeks or longer; MCL 418.115), and corporate officers are counted as employees by default. An officer who is also a stockholder owning at least 10 percent of a corporation with 10 or fewer stockholders can opt out, with the corporation's consent (MCL 418.161(4)). So your regular staff are covered, and the only owners who can come off the policy are qualifying officer-stockholders.
Who this is for: owners and officers of Michigan C-corporations and S-corporations, with or without other staff.
The short version
- A corporation that meets the coverage test must carry a policy, and its regular employees are always covered.
- Corporate officers are treated as employees and count toward the test by default.
- An officer who is also a stockholder owning at least 10 percent of a corporation with 10 or fewer stockholders may opt out, with board-approved consent (MCL 418.161(4)).
- The opt-out is filed on Form WC-337 and stays in effect until the officer revokes it in writing.
- If the corporation goes uninsured, its officers and directors can be held personally liable for the amounts owed.
How Michigan treats corporate officers
Michigan does not automatically leave corporate officers off the policy. An officer is treated as an employee, so an officer counts toward the coverage test and is covered by default. The one exit is narrow: the officer must also be a stockholder who owns at least 10 percent of a corporation that has 10 or fewer stockholders, and the corporation must consent, with its board approving the exclusion endorsed on a written notice of election to the carrier. That election is filed on Form WC-337 and stays in place until the officer revokes it in writing. A small closely held corporation usually qualifies; a widely held one does not.
What applies to your corporation
| Your corporation setup | Is comp required? | What owners and staff should know |
|---|---|---|
| Officers only, not meeting the test | Often no | Officers count as employees; if you do not cross a trigger, a policy is not yet required |
| Any non-officer employees, meeting the test | Yes | Employees covered from day one; qualifying officers may opt out on Form WC-337 |
| Closely held, 10 or fewer stockholders | Depends on the test | An officer with 10%+ stock may opt out with board consent |
| Widely held corporation | Depends on the test | Officers generally cannot use the opt-out; they stay covered |
The personal-liability catch
Incorporating shields your personal assets from many business debts, but it does not shield you from an uninsured comp claim. If a Michigan corporation that was required to carry coverage goes without it, the law makes the officers and directors individually, jointly, and severally liable for amounts the corporation cannot pay (MCL 418.641(3)). On top of that, an uninsured employer loses the legal protection that normally keeps an injured worker from suing, and loses the usual defenses in that lawsuit. So the corporate form does not make going uninsured safe; it is exactly the situation comp is built to handle.
A Troy example
Illustrative, not a quote. A Troy heating and cooling company is set up as an S-corporation with two officer-owners and four installers. The four installers put the business well past Michigan's 3-people trigger, so a policy is required and the installers are covered from day one. Each officer owns half the stock of a corporation with only two stockholders, so either may opt out on Form WC-337 with board consent; if they do not file, they stay covered. We place the policy, rate the installation payroll correctly, and confirm the officer elections are stamped on file. See our workers comp for HVAC contractors page.
Real questions Michigan owners ask
Does my Michigan corporation need workers comp?
Once it meets the test, yes. A corporation must carry coverage when it has 3 people working at one time or one worker at 35 or more hours a week for 13 weeks, and officers count toward that test.
Are corporate officers covered by workers comp in Michigan?
By default, yes. An officer is treated as an employee and is covered unless they file a valid exclusion, so officers are on the policy until they opt out.
Can a corporate officer opt out of coverage?
Only if they qualify. The officer must also own at least 10 percent of the stock in a corporation with 10 or fewer stockholders, get board consent, and file Form WC-337, which stays in effect until revoked.
If my officers opt out, are the employees still covered?
Yes. An officer opt-out only affects that officer. Every non-officer employee remains fully covered and cannot be excluded.
Can I be personally liable if the corporation has no coverage?
Yes. If a corporation that was required to carry coverage goes uninsured, its officers and directors can be held individually and jointly liable for the amounts owed.
Do officers count toward the 3-person test?
Yes. Michigan counts working officers as employees toward the 3-people-at-one-time trigger, unless a valid exclusion is on file for them.
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?
- 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)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Workers comp vs employers liability
- What workers comp does not cover
- Michigan HVAC 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.