In Michigan, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and Michigan's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in Michigan, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in Michigan?
Required for employers with 3+ employees at one time, or fewer than 3 if one employee worked 35+ hours/week for 13+ weeks in the prior 52 weeks.
Can owners and officers be included or excluded in Michigan?
| Sole proprietor | Not their own employee (elective). |
|---|---|
| Partners | Included; may elect out via Form WC-337. |
| LLC members | Member-managers included; may elect out via Form WC-337. |
| Corporate officers | Included; may elect out via Form WC-337 (reversed via WC-338). |
How to make the election in Michigan
- Official source: Form WC-337 — Notice of Exclusion (notarized; filed with the WDCA)
Payroll counted for an included owner in Michigan
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 1/1/2026), set by CAOM.
| Included owner/officer minimum | $633 per week |
|---|---|
| Included owner/officer maximum | $2,500 per week |
Officer/active LLC member $633–$2,500/week; partners and a sole proprietor's spouse at a fixed $26,000/yr.
These amounts update periodically; we confirm the current figure for your policy. Source: CAOM Facility Rates / Circular #318.
Michigan's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through Michigan Workers' Compensation Placement Facility, operated by CAOM. We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
Michigan business insurance · Workers' compensation coverage · Michigan Workers' Disability Compensation Agency.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in Michigan?
It depends on your entity and role. Not their own employee (elective). Included; may elect out via Form WC-337 (reversed via WC-338). Employees are always covered.
How do I include or exclude an owner from workers' comp in Michigan?
The right form, portal, or endorsement depends on your entity type. Michigan records the election on the policy with the carrier; our general inclusion/exclusion form documents it.
What payroll is used for an included owner in Michigan?
Officer/active LLC member $633–$2,500/week; partners and a sole proprietor's spouse at a fixed $26,000/yr. We confirm the current figure for your policy.
Can Cory Washington & Co. handle my Michigan workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.