How much does workers comp insurance cost in Michigan? (2026)

Recent rate-filing activity — 8 state filings across 1 commercial line

Commercial carriers can't charge whatever they want — each state's Department of Insurance must approve loss-cost filings before they take effect. These are primary-source, government-held records available on SERFF Filing Access. Cited below: the most-recent active filings affecting workers comp operations, each cited to the regulator or bureau filing it came from.

Source: SERFF Filing Access (filingaccess.serff.com) — the official public-records interface for state Department of Insurance filings. Loss-cost changes shown are the overall bureau-wide change in each state; the actual impact on your quote depends on your class code, payroll, experience modifier, and carrier-specific loss-cost multiplier (LCM). Get a quote for your exact numbers.

Scope note: the filings tabulated above reflect NCCI class 9586 (Barber/Beauty Services) — they illustrate how WC filings are structured but are not representative of all-industry WC rates. NCCI maintains ~700 class codes; your business's class code (e.g., 8810 office, 5645 carpentry, 7219 trucking, 0042 landscaping) has its own filed rates that vary up to 100× from this set. See per-industry pages below for class-matched filings.

National context — Workers Comp insurance overview

Small-business operators pay an average of $54/month ($648/year) for Workers Compensation insurance (NAIC Workers Compensation Topics). But WC pricing works differently from other commercial coverages — it's priced per $100 of payroll, with advisory loss costs ranging from about $0.05/$100 (office workers, NCCI class 8810) to $5.40/$100 (roofers, NCCI class 5551) in Colorado's 2026 filing. That's a ~108× spread by industry classification — the most extreme variance of any commercial coverage; roofing runs up to ~$25/$100 in higher-cost states, and carriers apply their own loss-cost multiplier.

Killer formula: WC premium = Class rate × Experience modifier (ex-mod) × (Annual payroll ÷ $100). Three levers: your NCCI class, your multi-year claims experience, your actual payroll. NCCI maintains 700+ classification codes and most states use NCCI's rate guidance.

WC is mandatory in 49 states. Texas is the only state where WC is opt-in (employers can decline coverage at their own risk). All other 49 states require WC from the first non-owner W-2 employee — though Tennessee requires WC at 5+ employees and Georgia at 3+. Four states are monopolistic — North Dakota, Ohio, Washington, Wyoming — where private carriers can't sell WC and you must buy through the state fund.

State variation is meaningful: industry-typical customer averages range from $34/month (Texas) to $127/month (Alabama) — 3.7× spread. Every number on this page is sourced from a named external publication (NCCI, NAIC, III).

National benchmark figures

Published cost ranges for Workers Comp insurance — useful as a national baseline against which the Michigan filings above signal local direction.

Industry-typical market ranges (national)

Sourced from III, NCCI, ISO, NAIC, BLS, FMCSA, FDA, NRA — government and bureau publications, not from our quote form

Market ranges from published industry sources:

• Median across all small-business operators: $54/month, $648/year (NAIC Workers Compensation Topics)
• Premium distribution (industry-typical customer-mix data): 47% pay under $50/month, 24% pay $50-$100/month, 29% pay $100+/month
• State variance: $34/month (Texas) to $127/month (Alabama) — 3.7× spread (NAIC Workers Compensation Topics)
• NCCI advisory loss-cost range: ~$0.05/$100 (office workers, class 8810) to ~$5.40/$100 (roofing, class 5551) in Colorado's 2026 filing — ~108× spread (up to ~$25/$100 in higher-cost states; carriers apply own LCM)
• WC premium formula: Class rate × Experience modifier × (Annual payroll ÷ $100)
• Experience modifier (ex-mod): Baseline 1.00. Clean record after 3+ years can earn 0.85 (15% credit). Claims-heavy record produces 1.20+ penalty
• 49 states require WC from the first non-owner W-2 employee. Texas is the ONLY opt-in state. Tennessee requires WC at 5+ employees; Georgia at 3+. (Per saved memory: this is 49 states, NOT 47)
• Monopolistic states (4): North Dakota, Ohio, Washington, Wyoming — private carriers cannot sell WC in these states; you must buy through the state fund
• NCCI maintains 700+ classification codes covering essentially every type of business activity in the US

For Michigan-specific direction, see the filed-rate table above.

Industry context — what published research says about Workers Comp coverage

• NCCI class is the #1 WC cost lever — ~108× spread. Office workers (NCCI 8810) carry an advisory loss cost near $0.05 per $100 of payroll; roofers (NCCI 5551) near $5.40 per $100 in Colorado's 2026 filing (up to ~$25 per $100 in higher-cost states). Same coverage, same legal framework — roughly 108× premium variance driven entirely by occupational risk; carriers apply their own loss-cost multiplier. NCCI maintains 700+ classification codes covering essentially every business activity in the US. Verify your class at every renewal — mis-classification on the high side wastes premium; mis-class on the low side voids claims that don't match declared activity. NCCI Atlas.
• WC premium formula: Class rate × Experience modifier × (Annual payroll ÷ $100). Three levers: (1) your NCCI class (one-time mostly-fixed factor), (2) your 3-yr claims experience (multi-year ex-mod), (3) your declared payroll (annual). Audited at year-end on ACTUAL payroll — under-declaring at quote produces back-billed premium at audit. NAIC Workers Compensation Topics.
• WC is mandatory in 49 states — Texas is the only opt-in state. Every other state requires WC from the first non-owner W-2 employee. Tennessee requires WC at 5+ employees; Georgia at 3+. Operating without required WC produces severe penalties — state fines, personal liability for employee injuries, denial of state contracts, denial of certain licenses. Don't try to skip WC unless you're in Texas AND have explicitly weighed the personal-liability trade-off. NCCI + state DOL frameworks.
• Experience modifier (ex-mod) is a multi-year credit/penalty. Baseline = 1.00. Clean 3-year claims record earns 0.85 (15% credit). Claims-heavy record produces 1.20+ penalty — meaning you pay 20% MORE than baseline rate for the same coverage. Ex-mod compounds with class rate — a roofer with a bad ex-mod pays 1.20 × $5.40 = $6.48/$100 (Colorado example). The fastest path to lower WC cost is improving ex-mod through documented safety + claims management. NCCI ABCs of Experience Rating.
• Monopolistic states (4 — ND, OH, WA, WY): private carriers CANNOT sell WC in these states. You must buy through the state fund. Premium structures + procedures differ from competitive states. If you operate in or hire employees in these states, your WC is a separate procurement path. NAIC WC topic.

How to lower your workers comp insurance cost

General levers that apply nationally — Michigan operators may also have state-specific levers (e.g. non-subscriber WC, multi-jurisdiction permit consolidation).

Get your actual Michigan quote in 5 minutes

The data above is regulator-filed direction. Your actual Michigan quote depends on class code, payroll, experience modifier, and the LCM each carrier files.

More Michigan rate-filing detail

• All Michigan commercial rate filings (every line, every recent filing) — the broader rate-data view for Michigan
• Rate filings by state — directory of all 47+ states with active filings
• National Rate Change Tracker — every filing across every state, sortable

Get a real Michigan quote for workers comp

The data above shows the regulator-filed direction for Michigan. For your actual quote — based on payroll, experience modifier, and the LCM each carrier files — request a free quote in under 90 seconds.

Related guides

• Workers Comp Insurance — full coverage guide
• WC Cost Calculator (class-code × state)
• NCCI class-code lookup — filed loss costs by code
• Standalone GL cost comparison
• BOP bundle cost comparison
• Workers Compensation glossary entry
• Our sourcing methodology

Sources cited (national context above)

1. Workers' Compensation Insurance Cost — Insurance Information Institute (III), 2024
2. Compare Workers' Comp Rates by State 2026 — Insurance Information Institute (III), 2024
3. Workers' Comp Insurance Cost Calculator — Insurance Information Institute (III), 2024
4. ABCs of Experience Rating (PDF) — National Council on Compensation Insurance (NCCI), 2024
5. NCCI Atlas Class Look-Up — National Council on Compensation Insurance (NCCI), 2024
6. Cheap Workers' Compensation Insurance — Insurance Information Institute (III), 2024