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
- Bind workers’ compensation before the first day of work; penalties for going without are severe.
- Report accurate payroll by class; misclassification is the most common audit problem.
- Ask whether owners should be included or excluded.
- Add hired and non-owned auto if the employee ever drives for work.
- Consider employment practices liability once you pass a few employees.
Coverage
Coverage to check
Get workers’ comp optionsStart with workers’ comp. Then the rest.
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Other business situations
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