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.