Legal Question in Workers Comp in Michigan

Re: subcontractors

The question you ask may very well have different answers depending upon which state you are in. I happen to be in Illinois. I see where you are in Michigan. In Illinois, you could be deemed the employer of those subcontractors depending upon circumstances. I can't speak for Michigan. But you should find out from a local attorney who has good knowledge with Michigan laws. Whatever fee you may pay is well worth it. There is also insurance that you can get. In Illinois Workers' Compensation insurance is mandatory. That may also be the case in Michigan. Whether Work Comp insurance is required by law or not, it is cheap insurance to cover your risk. Defending a claim or a law suit could cost you more than the entire claim is worth. To go without such insurance is penny wise and dollar foolish. Also, I would guess from your facts that you are in the construction business somewhere. The risk of injury is so great on a construction site that I don't know how you could take the chance of not being insured. You should consult an insurance agent for price quotes on Work Comp and General Liability insurance. There is one way to avoid the insurance and the cost of it. When you bargain for a contract, negotiate for the General Contractor to provide a blanket policy of insurance for all trades and subcontractors. That way someone will defend you when one of your "subcontractors" either brings a Work Comp claim for on the job injuries or sues you for negligence that he claims is due to you. Good luck.