Who must carry it in Michigan
A private employer must carry coverage if it regularly employs three or more employees at one time, or employs one or more employees for 35 or more hours a week for 13 or more weeks in the preceding 52.
Who counts as an employee
Part-time employees count toward the three; family members count unless the statute excludes them. The label on the paycheck does not settle it: Michigan applies its own employee test, and a worker who fails it is an employee for workers' compensation no matter what the contract says.
Owners, officers and LLC members
Sole proprietors and partners are not employees. Officers of a small corporation who own ten percent or more, and LLC members, may exclude themselves by filing with the Agency. The election is made on the policy and affects both coverage and premium, so decide it before the policy is bound rather than at audit.
The day you hire
CoverMatch quotes workers' compensation from the first employee, with pay-as-you-go billing through most payroll companies where a carrier offers it, so the policy can start the week you hire without a large deposit. Add the policy to your wallet and the live certificate is ready for the general contractor or client who asks for proof.
If you go without
An uninsured employer can be fined and imprisoned, enjoined from operating, and sued by the injured worker without the usual defenses. The specific amounts and procedures are in the statute and on the agency page linked above; they change, and the licensed agent who reviewed this page checks them on each update.