Michigan Contractor Insurance Requirements
Michigan requires workers' compensation for employers with three or more employees at any one time, or who regularly employ one or more employees at least 35 hours per week for 13 weeks during the preceding 52 weeks. The Michigan Workers' Disability Compensation Agency administers the program. The Department of Licensing and Regulatory Affairs (LARA) licenses contractors. Michigan's auto insurance reform has also affected WC coordination of benefits for injured workers.
Michigan COI Requirements at a Glance
The following table summarizes the minimum insurance requirements for contractors operating in Michigan. Commercial property managers often require limits above state minimums.
| Coverage Type | Minimum / Status |
|---|---|
| General Liability (per occurrence) | $500,000 |
| General Liability (aggregate) | $1,000,000 |
| Workers' Compensation | Mandatory 3+ employees or 1 full-time employee for 13+ weeks |
| Umbrella / Excess Liability | Commonly Required on Large Projects Common minimum: $1,000,000 |
| Additional Insured Endorsement | Commonly Required |
| Waiver of Subrogation | Commonly Required |
Coverage Notes
GL: Michigan LARA requires $500K per occurrence minimum for most contractor licenses. Detroit commercial projects typically require $1M/$2M.
WC: MCL § 418.115 requires WC for employers with 3+ simultaneous employees or 1 employee working 35+ hrs/week for 13+ weeks. Agricultural workers have separate thresholds.
Umbrella: Required on state agency contracts and large commercial projects.
Additional Insured: Standard on commercial property management contracts.
Waiver of Subrogation: Standard on Michigan commercial contracts.
Michigan-Specific Laws & Regulations
These laws directly affect how contractor insurance requirements are structured in Michigan. Property managers should be familiar with these statutes when reviewing vendor COIs.
Michigan Workers' Disability Compensation Act (MCL § 418.115)
Requires WC for employers with 3+ employees or 1 regular full-time employee. Michigan WDCA has specific requirements for contractor coverage when hiring subcontractors.
Michigan COI Frequently Asked Questions
Common questions from property managers and contractors about insurance requirements in Michigan.
Do contractors in Michigan need workers' compensation?
Michigan requires workers' compensation for employers with three or more employees at any one time, or who regularly employ one or more employees for at least 35 hours per week for 13 or more weeks during the preceding 52 weeks. Small contractors with fewer than 3 employees may not be required to carry WC but property managers should still request documentation.
What are the minimum insurance requirements for contractors in Michigan?
Michigan LARA requires at least $500,000 per occurrence GL for most contractor license categories. Detroit and Grand Rapids commercial property managers typically require $1M/$2M GL with workers' compensation and additional insured endorsements.
What is Michigan's WC threshold compared to other states?
Michigan's workers' compensation threshold is more complex than most states — it requires WC when you have 3 or more employees simultaneously, or when you have even one employee working full-time (35+ hrs/week) for 13 or more weeks. This means small seasonal contractors may have periods when they're not required to carry WC.
What should Michigan property managers look for on a COI?
Verify GL limits ($1M/$2M for commercial work), workers' compensation policy (check the threshold applies), additional insured endorsement, and waiver of subrogation. For any contractor with more than 2 employees, WC is almost certainly required.
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