Michigan workers’ comp and subcontractor insurance requirements
What general contractors, property managers and other businesses hiring subcontractors in Michigan need to know: who has to carry workers’ comp, when you’re on the hook for an uninsured sub, and what to collect before work starts.
Michigan at a glance
| Who must carry workers’ comp | Employers with 3 or more employees at one time, or 1 or more employees working at least 35 hours a week for 13 weeks or longer in the preceding 52 weeks. |
|---|---|
| Where coverage comes from | Private insurers, plus self-insurance where approved |
| Regulator | Michigan Workers’ Disability Compensation Agency |
Are you liable for an uninsured sub in Michigan?
A principal can be liable to an uninsured contractor’s employees (MCL 418.171).
Separately, your own workers’ comp premium auditor may charge you for an uninsured sub’s payroll. Collecting a current certificate for every sub is the simplest protection. See workers’ comp audits and uninsured subcontractors, or estimate the cost with the workers’ comp audit calculator.
What to collect from subcontractors in Michigan
- A certificate of insurance, usually an ACORD 25, showing GL, auto, umbrella and workers’ comp.
- Exemption paperwork for sole proprietors or officers who claim they don’t need workers’ comp under Michigan rules.
- Additional insured and waiver of subrogation endorsements for higher-risk trades. See waiver of subrogation on workers’ comp.
- A renewal certificate before each policy expires. See COI expiration.
Common contract minimums
These aren’t set by Michigan law. They’re typical subcontract requirements that you can adjust by trade and project size.
| Coverage | Typical minimum |
|---|---|
| General liability | $1M each occurrence / $2M aggregate, additional insured, primary and non-contributory |
| Auto liability | $1M combined single limit |
| Umbrella / excess | $1M–$5M+, by trade risk and project size |
| Workers’ comp / employers’ liability | Statutory / $500K–$1M each, waiver of subrogation |
Generate requirements by trade with the subcontractor insurance requirements generator.
Frequently asked questions
Is workers’ comp required in Michigan?
Employers with 3 or more employees at one time, or 1 or more employees working at least 35 hours a week for 13 weeks or longer in the preceding 52 weeks. Confirm details with the Michigan Workers’ Disability Compensation Agency.
Is a general contractor liable for an uninsured subcontractor in Michigan?
A principal can be liable to an uninsured contractor’s employees (MCL 418.171).
What insurance should I require from subcontractors in Michigan?
State law sets workers’ comp rules; your contract sets everything else. Common minimums are general liability of $1M per occurrence and $2M aggregate, auto liability of $1M, workers’ comp with employers’ liability of $500K–$1M, and additional insured status and waiver of subrogation in your favor.
General information, not legal or insurance advice. Last reviewed October 2026. Rules change, so confirm with the Michigan Workers’ Disability Compensation Agency or a licensed professional.
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