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Michigan workers' comp for trucking fleets: who needs it

Helm PartnersUpdated Oct 27, 2026Sources checked Oct 27, 2026
Short answer

A Michigan trucking company must carry workers' comp once it regularly employs 3 or more people at one time, or fewer if one works 35 or more hours a week for 13 weeks in the past year (MCL 418.115). Unlike Ohio, coverage comes from private insurers or approved self-insurance (MCL 418.611). A sole proprietor is not an employee of their own business.

In this guide
  • Who must carry it
  • Where coverage comes from
  • Company drivers and owner-operators
  • Owners, partners and LLC members
  • If you go without it
  • What to keep on file
  • FAQ

Michigan handles workers' comp differently from Ohio. Here is when a trucking company must carry it, where it comes from, how owner-operators and owners count, and what to keep on file.

Who must carry it

  • Any private employer that regularly employs 3 or more people at one time, part-time included (MCL 418.115).
  • Any private employer with fewer than 3, if at least one has worked 35 or more hours a week for 13 weeks or longer in the past 52 weeks.
  • For a fleet, regularly employing three drivers at once triggers it, part-time included. One driver working 35 or more hours a week triggers it after 13 weeks.
  • Employers below those lines can still choose to carry it, the Workers' Disability Compensation Agency says.

Where coverage comes from

  • A policy from an insurer authorized to write workers' comp in Michigan, or self-insurance the agency approves (MCL 418.611). Employers in the same industry can apply to self-insure as a group.
  • Ohio is different: coverage there comes from BWC, the state fund, unless BWC approves self-insurance. See Ohio workers' comp for trucking. Indiana: Indiana workers' comp for trucking.
  • The agency says insurers set rates by the classification of the work, and that Michigan has had competitive pricing since 1983 (employer FAQ).
  • Using a PEO? The agency says the business and the PEO are co-employers and both must keep separate policies.

Company drivers and owner-operators

  • Michigan counts a person working in your business as an employee if they do not keep a separate business, do not hold themselves out to and serve the public, and are not an employer under the act (MCL 418.161(1)(n)). The law also points to the IRS 20-factor test.
  • Whether a leased owner-operator counts turns on those facts. A written lease that meets 49 CFR 376.12 covers insurance terms, but it does not settle the workers' comp question by itself. For your situation, check with the agency or an attorney.
  • More on lease terms: leased-on owner-operator insurance.

Owners, partners and LLC members

  • A sole proprietor is never an employee of their own business, the agency says. Partners, corporate officers and LLC managers who are members do count as employees.
  • Some owners can opt out. Named partners and certain family members can be excluded by policy endorsement (418.161(2)). An LLC manager and member owning at least 10% of an LLC with up to 10 members can opt out by written notice to the insurer (418.161(3)). A corporate officer owning at least 10% of a corporation with up to 10 stockholders can do the same (418.161(4)).
  • If every worker is one of these owners, they can file an exclusion with the agency (418.161(5)). The agency's Insurance Compliance Division is at 517-284-8922.
  • Hauling for hire only inside Michigan? The CVED Authority application asks for proof of workers' comp or an approved exclusion form from the Workers' Compensation Agency (Michigan State Police CVED). See Michigan CVED Authority.

If you go without it

  • Failing to secure coverage is a misdemeanor: a fine of up to $1,000, up to 6 months in jail, or both, and each day is a separate offense (MCL 418.641).
  • An injured employee can sue the employer in civil court.
  • The agency says it can also ask a court to stop the company from employing anyone until coverage is in place.

What to keep on file

  1. Your policy, or the agency's self-insurance approval.
  2. Any written exclusion notices for owners.
  3. A signed written lease for each owner-operator.
  4. Your driver count and weekly hours, so you know when you cross the 3-employee or 35-hour line.
  5. Injury reports: the agency says an injury causing death, a specific loss or 7 or more days of disability goes on Form WC-100.

More Builders guides: hiring drivers, what underwriters look at and small fleet trucking insurance.

FAQ

When does a Michigan trucking company need workers' comp?

When it regularly employs 3 or more people at one time, part-time included, or fewer than 3 if at least one has worked 35 or more hours a week for 13 weeks or longer in the past 52 weeks (MCL 418.115).

Can I buy Michigan workers' comp from a private insurer?

Yes. Michigan employers secure coverage with an insurer authorized to write workers' comp in Michigan, or with self-insurance the agency approves, alone or as a group (MCL 418.611). Ohio is different: coverage there comes from BWC, the state fund, unless BWC approves self-insurance.

Is an owner-operator my employee for Michigan workers' comp?

It depends on the facts. Michigan counts a person working in your business as an employee if they do not keep a separate business, do not hold themselves out to and serve the public, and are not an employer under the act (MCL 418.161(1)(n)). The law also uses the IRS 20-factor test.

Do I need workers' comp for myself as a one-truck owner?

A sole proprietor is never an employee of their own business, LEO says. An LLC manager who is a member counts as an employee, but one owning at least 10% of an LLC with up to 10 members can opt out by written notice to the insurer (MCL 418.161(3)).

What happens if I do not carry it?

Failing to secure coverage is a misdemeanor, with a fine of up to $1,000, up to 6 months in jail, or both, and each day is a separate offense. An injured employee can also sue the employer in civil court (MCL 418.641).

If I use a PEO, do I still need my own policy?

Yes. Michigan's agency says the business and its PEO are co-employers, and both must keep separate workers' comp policies.

This guide is general information, not legal advice or an offer of insurance. Rules and programs change, so check the sources below. Helm Partners is a trucking-only insurance agency being formed in Michigan. We are not licensed in any state yet. Our Michigan license is pending. We do not quote or sell insurance until licensed.

Sources

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