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businesssituation
Business situation

Hiring your first employee

Michigan requires workers’ compensation for most employers with one or more employees. It is also the coverage that protects you from being sued by the person you just hired.

Whatchanges
What changes
  • Workers’ compensation becomes mandatory for most employers.
  • Payroll becomes a rating factor on several policies.
  • Employment practices — hiring, firing, harassment claims — become a risk that no other policy covers.
What to do, in order
  1. Bind workers’ compensation before the first day of work; penalties for going without are severe.
  2. Report accurate payroll by class; misclassification is the most common audit problem.
  3. Ask whether owners should be included or excluded.
  4. Add hired and non-owned auto if the employee ever drives for work.
  5. Consider employment practices liability once you pass a few employees.
Coverage
Coverage to check

Start with workers’ comp. Then the rest.

Get workers’ comp options
Nextstep

Let’s see what the market can do for you.

Tell us what you need and where you are. We’ll show you the path before you give us a phone number.

Find my options Call (989) 275-5555