A Workers Compensation policy covers the medical care for workplace injuries and illnesses. It also provides lost wages for employees who are injured on the job.
If your LLC has even just one employee, you are required by state law to carry Workers Compensation insurance. If your LLC does not have any employees, you may still be required to carry Workers Compensation insurance depending on what state you are in.
In Michigan, members or managers of an LLC are considered employees of the LLC. Members or managers may be excluded from Workers Compensation coverage if they own at least 10% of the company. If your LLC has no employees besides the members or managers that own at least 10% then an exclusion form may be filed with the state to comply with the insurance requirements without purchasing a Workers Compensation policy.
Below is a link to the Michigan state Workers CompensationLaw requirements: https://www.michigan.gov/-/media/Project/Websites/leo/Documents/WDCA-RESOURCES-AND-REPORTS/Publications/wca_WCPUB002.pdf?rev=61c152c0432b4549bac06d8b4c908a63#:~:text=Corporations%2C%20limited%20liability%20companies%20and,(s)%20of%20the%20business.
Your Friends In The Insurance Business at Midland's Ieuter Insurance Group can answer your business insurance coverage questions.
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