If you have staff working in Michigan, you generally need Michigan workers' comp for them, wherever your company is based. Michigan's agency has authority over an injury even outside the state when the worker was a Michigan resident at the time or was hired in Michigan (MCL 418.845), so an out-of-state employer with Michigan workers usually has to secure Michigan coverage. Working from home does not change this; where the work happens is what matters.
Who this is for: Michigan employers with remote staff, and out-of-state companies with someone working in Michigan.
The short version
- An employee physically working in Michigan generally needs Michigan coverage, no matter where the company is based.
- Michigan can reach an out-of-state injury if the worker was a Michigan resident or the hiring happened in Michigan (MCL 418.845).
- Remote employees count toward the same 3-at-one-time or 35-hours-for-13-weeks test as anyone else.
- Working from home does not remove a worker from the count or the coverage.
- A policy can add Michigan for a specific worker or be written for Michigan directly.
Where the work happens drives the coverage
Workers' comp follows the place of employment, so a person doing their job in Michigan generally needs Michigan coverage even if your headquarters is in Ohio or Illinois. Michigan also reaches beyond its borders in some cases: its agency can take an injury that happened out of state when the worker was a Michigan resident at the time of injury or the contract of hire was made in Michigan. For a company with people in several states, that usually means listing each state where employees actually work on the policy so no one falls through a gap.
| Your situation | Michigan coverage needed? | Why |
|---|---|---|
| Remote employee living and working in Michigan | Yes | The work happens in Michigan |
| Out-of-state company, one worker in Michigan | Generally yes | An employee working in Michigan needs Michigan coverage |
| Michigan resident hurt on a job out of state | Often yes | Michigan can reach the injury under MCL 418.845 |
| Michigan employer, worker fully in another state | Usually that state's coverage | Coverage follows where the work is performed |
Out-of-state employers with a Michigan worker
If your business is based elsewhere but you hire someone who works in Michigan, you generally need Michigan coverage for that person, and the worker still counts toward Michigan's triggers. You have two clean ways to handle it: add Michigan to your existing policy so the state is listed for that employee, or write a separate Michigan policy. The mistake to avoid is assuming your home-state policy automatically answers a Michigan claim, because a claim can be brought under Michigan law when the work is here. We can confirm which approach your carrier supports.
A Livonia example
Illustrative, not a quote. A software company headquartered in Chicago hires a developer who lives and works from home in Livonia. Because the developer performs the work in Michigan, the company generally needs Michigan coverage for that employee, and the developer counts toward Michigan's coverage test. We add Michigan to the company's policy so the remote hire is properly covered under Michigan law, not just Illinois law. See our workers comp for technology firms page.
Real questions Michigan owners ask
Do I need Michigan workers comp for a remote employee here?
Generally yes. An employee who lives and works in Michigan usually needs Michigan coverage, no matter where your company is based, because coverage follows where the work is performed.
I am an out-of-state company with one worker in Michigan. Do I need coverage here?
Usually yes. A worker performing their job in Michigan generally needs Michigan coverage. You can add Michigan to your existing policy or write a separate one for that employee.
Can Michigan cover an injury that happened out of state?
Sometimes. Michigan can reach an out-of-state injury when the worker was a Michigan resident at the time or was hired in Michigan, under MCL 418.845.
Do remote workers count toward the coverage test?
Yes. A remote employee counts toward the 3-people-at-one-time and single-employee hours triggers the same as any on-site worker.
Does my home-state policy cover a Michigan claim automatically?
Not always. A claim can be brought under Michigan law when the work is performed here, so you usually need Michigan listed on the policy rather than relying on another state's coverage.
How do I add Michigan for one remote hire?
Two ways. You can add Michigan to your current policy so the state is listed for that employee, or write a separate Michigan policy. We can confirm which your carrier supports.
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?
- 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)
- What workers comp does not cover
- Workers comp vs employers liability
- Michigan technology firm 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.