# Michigan contractor insurance requirements

> What Michigan law says about workers' comp, contractor license insurance and indemnity clauses, and what to check on a contractor COI for a project there.

Reviewed Oct 28, 2026 by Forsured. Source: https://forsured.ai/coi-requirements/michigan/

## The short version

- Workers' comp required at: 3 employees, or 1 full-time
- License insurance minimum: No statewide minimum
- Anti-indemnity statute voids: Sole negligence

## Workers' comp in Michigan

Michigan private employers must carry workers' comp if they regularly employ three or more people at one time, or one or more people for 35 hours a week for 13 weeks or more in the past year.

Agency: [Michigan Workers' Disability Compensation Agency](https://www.michigan.gov/leo/bureaus-agencies/wdca/Insurance-Requirements/Pages/workers-disability-compensation-insurance-requirements)

## Contractor licensing and insurance

We found no statewide general liability minimum tied to a general contractor license. Michigan licenses residential builders, without a liability insurance minimum. Cities and counties can set their own licensing and insurance rules, so check where the project is.

## Indemnity and additional insured clauses

Michigan's anti-indemnity statute (Mich. Comp. Laws § 691.991) voids construction contract clauses that make a contractor indemnify another party for that party's sole negligence. Clauses that cover shared fault are generally allowed.

## What to check on a contractor COI for a Michigan project

1. **Workers' comp.** A contractor below Michigan's threshold can legally go without it, but your project requirements can still require it. Decide what you'll accept, and get an exemption or a policy in writing. For an out-of-state contractor, confirm Michigan is listed on the workers' comp policy.
2. **General liability.** Michigan doesn't set a statewide floor for a general contractor license, so your project requirements set the bar. Compare each limit on the COI with what the contract asks for.
3. **Additional insured.** The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. **Dates.** Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

## Common questions

### Do contractors need workers' comp in Michigan?

Michigan private employers must carry workers' comp if they regularly employ three or more people at one time, or one or more people for 35 hours a week for 13 weeks or more in the past year.

### Does Michigan require contractors to carry general liability insurance?

We found no statewide general liability minimum tied to a general contractor license. Michigan licenses residential builders, without a liability insurance minimum. Cities and counties can set their own licensing and insurance rules, so check where the project is.

### Can a Michigan construction contract make a contractor cover another party's negligence?

Michigan's anti-indemnity statute (Mich. Comp. Laws § 691.991) voids construction contract clauses that make a contractor indemnify another party for that party's sole negligence. Clauses that cover shared fault are generally allowed.

## Sources

1. [Workers' disability compensation insurance requirements](https://www.michigan.gov/leo/bureaus-agencies/wdca/Insurance-Requirements/Pages/workers-disability-compensation-insurance-requirements), Michigan Department of Labor and Economic Opportunity
2. [Anti-Indemnity Statutes in All 50 States (2023)](https://grsm.com/wp-content/uploads/2023/10/Anti-Indemnity-Statutes-2023.pdf), Gordon Rees Scully Mansukhani, 2023
3. [State Workers' Compensation Officials](https://www.dol.gov/agencies/owcp/wc), U.S. Department of Labor

General information, not legal advice. Confirm with the state agency, your broker or your attorney.

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