Workers' Comp Insurance for Auto Repair Businesses in Michigan

Auto service / repair (NCCI 8380) is moderately-rated with claims driven by chemical burns, lifting, and pneumatic tool injuries. Body shops (9521) and tire shops have separate codes in Michigan. The Michigan workers' compensation market is governed by CAOM, and the average rate statewide is approximately $0.97 per $100 of payroll.

Michigan requirements for auto repair businesses

When required: Required for employers with one or more employees working 35+ hours/week for 13+ weeks, or 3+ employees at any time.

Sole proprietors: Sole proprietors are exempt unless they elect.

Owner / officer exclusion: Officers may be excluded.

Auto Repair class codes used in Michigan

Why auto repair workers' comp is tricky in Michigan

Body shops have higher rates than mechanical repair due to paint exposure and heavier lifting. Lot attendants and parts staff should be split out to reduce blended rate.

Tips for Michigan auto repair shops

• ✓ Body work vs mechanical = different codes
• ✓ Sales staff and parts counter can be split into lower-rated codes
• ✓ Lift safety training and proper PPE earn schedule credits

Auto Repair workers' comp in other states

Rates and requirements for auto repair shops vary widely by state. Compare Michigan to other major markets:

Other industries in Michigan

Michigan workers' comp rates and requirements for other common industries: