Group Self-Insurance Bond for Michigan Employers


Employers in Michigan that are required to provide workers’ compensation insurance now have another coverage option with the passing of House Bill 4362. Effective February 14, 2016, some employers will be able to partner with other employers in their industry to form a qualifying group of self-insurers.

Currently, employers can choose to self-insure if they have the financial capabilities to pay any required compensation and benefits to their employees, in accordance with Michigan Administrative Code 408.43c. The Director of the Department of Licensing and Regulatory Affairs (LARA) determines if the employer has satisfactory financials and is eligible to self-insure. The Director will also determine if the employer needs to furnish a surety bond or other form of financial security, such as an irrevocable letter of credit or aggregate excess insurance coverage.

HB 4362 will allow two or more public employers in the same industry with combined assets of $1,000,000 or more to pool their assets to qualify as self-insurers. Section 2 of HB 4362 further defines the necessary qualifications. The Director will also determine if a surety bond or other form of security is required of the self-insuring employers.

Questions about the changing legislation in Michigan can be directed to LARA. Call the experts at to get bonded in Michigan quickly, easily and accurately.

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About the Author

Melanie Baravik
Melanie is a senior at the University of Missouri - Columbia studying English with an emphasis in creative writing. She is a member of the marketing department and outreach team for, a leading provider of online bonding for clients nationwide.