Updated August 2026
Michigan Business Insurance Requirements 2026: Complete Legal Guide
Every Michigan business must meet specific insurance requirements. Here is a complete guide to what is legally required — workers comp thresholds, auto minimums, contractor bonds, and non-compliance penalties.
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Michigan Business Insurance Requirements at a Glance
Workers' Comp Threshold
3+ employees or 1 regular full-time employee
Commercial Auto Minimums
Michigan no-fault: mandatory PIP, Property Protection Insurance ($1M), and residual bodily injury liability ($250K/$500K)
Contractor Bonds
Michigan Residential Builder License requires $20,000 surety bond; mechanical and electrical licensi…
Regulator
Michigan Department of Insurance and Financial Services (DIFS)
Workers' Compensation in Michigan
Michigan requires WC for employers with 3 or more employees, or any employer with an employee who works 35+ hours per week for 13+ consecutive weeks.
Regulated by: Michigan Department of Insurance and Financial Services (DIFS)
Non-Compliance Penalties
WC non-compliance: misdemeanor, $1,000+ fines, personal liability for all injury expenses
Contractor Licensing & Bond Requirements
Michigan Residential Builder License requires $20,000 surety bond; mechanical and electrical licensing through LARA
State Insurance Regulator
Michigan Department of Insurance and Financial Services (DIFS)
https://www.michigan.gov/difs
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