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Michigan Farm Bureau Family of Companies

Workers' Compensation Basics

Understanding the Basics of Workers Compensation Insurance  

Most businesses are required by law to provide Workers Compensation insurance. It protects employees by providing income and medical care if they are injured on the job. It also protects employers by providing coverage for lawsuits filed because of a work-related injury.

Workers Comp Costs  

As an employer, the amount you pay for Workers Compensation coverage varies according to your industry and claim history. Here are some tips to help keep costs lower for all industries:

  • Thoroughly train new employees on their job duties  
  • Make safety a top priority in company culture 
  • Pre-screen employees (drug screens and background checks) 
  • Manage claims proactively 
  • Make sure employee claims are classified properly 

Workers Comp Audits  

If you are scheduled for a Workers Compensation audit, a small amount of preparation can save you and your business time and money. Here are some ways your business should prepare before your next audit: 

  • Schedule the audit to take at least a couple of hours to complete. You do not want to be rushed during the process.  
  • Begin collecting and organizing important records (payroll records, classification divisions, insurance certificates). 
  • Compose a summary of each category and make any necessary adjustments.  
  • Review employee job classifications and job duties.  
  • Remember to request an audit worksheet from the auditor once the audit is complete. Your Farm Bureau Insurance agent can review the final audit report.    


Workers Compensation is essential to protect your employees ― and your company. Contact one of our agents today to review your company’s approach to safety, hiring, classification, and claims management. We could help you to find new ways to keep costs under control.