Do I need workers comp insurance for a private caregiver in Michigan?
Key facts
- Governing statute
- Michigan Workers Disability Compensation Act
- Common trigger threshold
- 35 hrs/week for 13+ weeks with same employer
- Household policy cost
- $500–$1,500/year (typical range)
- Homeowners insurance
- Typically excludes employee injuries
- Agency arrangement
- Workers-comp obligation moves to agency
Michigan’s Workers Disability Compensation Act applies to household workers who cross specific hour and pay thresholds — commonly summarized as 35 hours per week for 13 weeks or more with the same employer, though the statute has its own definitions and exceptions. A caregiver working regular weekly hours in a family’s home usually qualifies.
Once the arrangement qualifies, the family must obtain a workers compensation policy from a Michigan-authorized carrier. Household workers-comp policies are available through most personal-lines insurance brokers and typically cost $500–$1,500 per year depending on hours and duties. Operating uninsured when coverage is required exposes the family to the caregiver’s medical bills, lost-wage payments, and statutory penalties.
Homeowners insurance does not substitute for workers compensation. Most homeowners policies specifically exclude injuries to household employees. A workers-comp policy is a separate contract, purchased separately, and rated separately.
A licensed home care agency in Southeast Michigan carries workers comp on every caregiver on its roster. When the family engages the agency rather than hiring directly, the workers-comp obligation moves to the agency and the family carries no independent policy for the caregiver.
For the full breakdown, see the cornerstone: Private Hire vs. Agency guide.
Related questions
- Who confirms whether my caregiver crosses the threshold?
- A Michigan-licensed insurance broker or the Michigan Workers Disability Compensation Agency (WDCA). Do not rely on informal advice — the exposure is meaningful.
- Does part-time care trigger the requirement?
- It can, depending on hours and duration with the same employer. The 35-hour framing is a common summary, not the statute’s complete definition.
- What happens if a caregiver is injured and we have no policy?
- The family may be personally responsible for medical costs, lost wages, and potential penalties. Bring it to a Michigan employment attorney immediately.
Talk to a real person
We answer the phone live during business hours. Five minutes saves a lot of guessing.