Worker's Compensation FAQ
- What is the Michigan Worker's Compensation Placement Facility and how can it help me?
The Michigan Worker's Compensation Placement Facility is a non-profit non-governmental association formed by the Legislature in 1982 to provide worker's compensation insurance to Michigan businesses that cannot obtain coverage from private insurers. Its coverage and rating parameters are based on Chapter 23 of the Michigan Code. A business that is eligible for coverage with private insurers can also obtain coverage with the Facility.
Its rates are not based on a statutory formula, so the facility utilizes actuarial professionals to determine the appropriate rates for coverage. Because it insures a higher percentage of people who would be ineligible or more risky for private insurers, its rates for many consumers may be higher than rates for comparable coverage with a private insurer.
It uses private insurers as servicing carriers for its business. Each one use the Facility's eligibility and rating plan to underwrite Facility policies, but each issues the Facility policy forms containing its respective servicing carrier name and logo. Thus, most policyholders would think coverage is underwritten by one of the top Servicing carriers (Accident Fund, Liberty Mutual, etc.). If you need worker's compensation insurance and cannot find it from private insurers you should call the Facility at 734-462-9600.
- How can a business be excluded from having to purchase worker's compensation coverage?
The Michigan Worker's Compensation Disability Act contains the guidelines for which businesses must purchase a worker's compensation policy (Section 418.115). In some instances the Workers' Disability Compensation Agency, a state agency, may allow a business to file form BWC 337 (Worker's Compensation Exemption). Contact the Compliance & Employer Records Division at 888-396-5041 with questions regarding who is eligible for an exemption.
- What agency do I contact if the worker's compensation insurer is not paying my claim in a timely manner?
The Workers' Disability Compensation Agency, a state agency, helps injured employees obtain required coverage from insurers and employers. Call 888-396-5041 with questions regarding the dispute resolution process.
- How do I obtain a worker's compensation policy for Wrap Up projects?
Shop for coverage with different insurers to determine if they offer coverage for such projects in accordance with MCLA 418.621(3) and Administrative Rules R 408.42 through 42b. The Workers' Disability Compensation Agency, a state agency, oversees the approval of workers compensation coverage for wrap up projects. Call 888-396-5041 for details.
The answers provided are not meant to be a substitute for legal advice.