To get workers' comp in Michigan, you buy a policy from any private insurer licensed to write comp in the state, because Michigan has no state fund. If carriers turn you down because your work is risky or your business is new, the Michigan Workers' Compensation Placement Facility, the state's assigned-risk plan, is the guaranteed fallback, so you can still get covered. There is always a way to buy the coverage; the question is which path fits you.
Who this is for: Michigan owners buying comp for the first time, or ones who have been declined.
The short version
- Michigan is an open, private market with no state fund; you buy from a licensed private carrier.
- If no carrier will voluntarily take you, the Michigan Workers' Compensation Placement Facility, the assigned-risk plan, is the backstop.
- That backup plan (run by the state's rating organization, CAOM) is the option of last resort, not your first stop.
- Owners with no employees who only need proof of coverage for a contract can often use a policy built for that (a ghost policy).
- Getting classified correctly upfront, into the right type-of-work category, keeps your first-year price fair.
Your ways to get covered
Michigan gives you three routes. The main one is the voluntary market: a licensed private carrier writes your policy, competing for the business, and this is where most employers land. If your work is too risky or your history too thin for any carrier to take you voluntarily, the assigned-risk plan guarantees coverage. And a large or well-capitalized employer, or a qualified group of employers in the same industry, can apply to the state for permission to self-insure under MCL 418.611. For nearly all small businesses, the first route is the answer, with the second as a safety net.
| Path | Who it fits | How you get it |
|---|---|---|
| Voluntary private market | Most employers | A licensed carrier writes your policy, usually through an agent |
| Assigned-risk plan (Placement Facility) | Hard-to-place or new businesses turned down elsewhere | Placed through the facility administered by CAOM |
| Approved self-insurance | Large employers or qualified industry groups | Apply to the state for authorization (MCL 418.611) |
If you have been turned down
Being declined by a carrier does not mean you cannot get coverage. The assigned-risk plan exists precisely for businesses that private carriers pass on, whether because the work is high-hazard, the business is brand new, or the claims history is rough. It is the market of last resort, so the price is usually higher than the voluntary market, which is why it pays to shop the open market first. If you are an owner with no employees who only needs to show proof of coverage to a general contractor or client, a policy written for an owner with no staff, sometimes called a ghost policy, may be all you need.
A Battle Creek example
Illustrative, not a quote. A brand-new landscaping company near Battle Creek with three seasonal crew members needs coverage but keeps getting declined because it has no history. We first shop the voluntary market, where a carrier that likes new landscapers offers a workable price. Had every carrier passed, the assigned-risk plan would have guaranteed a policy as the backstop. We also make sure the crew is classified in the right landscaping category so the first-year price is fair. See our workers comp for landscapers page.
Real questions Michigan owners ask
How do I buy workers comp in Michigan?
From a private carrier. Michigan has no state fund, so you buy a policy from any insurer licensed to write comp in the state, usually through an agent who shops it for you.
What if no carrier will cover my business?
There is a backstop. If private carriers turn you down, the Michigan Workers' Compensation Placement Facility, the assigned-risk plan, guarantees coverage as the market of last resort.
What is the state's backup coverage if every insurer turns me down (the assigned-risk plan)?
It is Michigan's safety net for hard-to-place businesses. Administered by CAOM, it provides coverage to employers that private carriers will not take voluntarily, usually at a higher price.
Does Michigan have a state workers comp fund?
No. Michigan has no state fund. Coverage comes from private carriers on the open market, with the assigned-risk plan as the guaranteed fallback.
I have no employees but a client wants proof of coverage. What do I do?
You can buy a policy for that. Owners with no employees often use a policy built for a no-staff owner, sometimes called a ghost policy, just to satisfy a contract's proof-of-coverage demand.
Can I self-insure my workers comp in Michigan?
Only with approval. A large employer or a qualified group of employers in the same industry can apply to the state for permission to self-insure, but most small businesses buy a policy instead.
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?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What is a ghost workers comp policy?
- Glossary: workers comp class code
- Michigan landscaper 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.