Q. Why do I need workers’ compensation insurance for my business?
A. State law requires you to have workers’ compensation coverage if you have any full-time employees, or three or more part-time employees.

Q. Do I need to run a retail business to purchase insurance from Retailers Mutual?
A. No. A wide array of businesses are eligible.

Q. Who can be covered by Retailers Mutual?
A. All business employees except sole proprietors may be covered by Retailers Mutual. Even though sole proprietors are ineligible for workers’ compensation insurance on themselves, they are able to buy coverage for their qualified employees.

Q. How does the company treat officers and partners?
A. A corporate officer only pays premium on the first $78,000 in remuneration; partners on the first $16,700. State law also allows some officers and partners to exclude themselves from coverage.

Q. What is covered?
A. Retailers Mutual provides full benefits required by state law.

Q. How are premiums determined?
A. Your premium is based on several factors: current rates for each job classification, your business payroll and your company’s claims experience. One of the benefits of Retailers Mutual is that rates are based on the collective experience of the company’s customers, rather than on national data that can drive up rates unnecessarily. Retailers Mutual rates are extremely competitive; in many classifications they are among Michigan’s lowest.

Q. What is a mutual insurance company?
A. In a mutual company the policyholders have a direct say over the operation of the company. The policyholders directly elect the Board of Directors, which sets overall policy and hires the professional management team.

Q. Why did Retailers Fund convert to Retailers Mutual Insurance Company?
A. Retailers Fund, established in 1981 by a group of Michigan Retailers Association members seeking relief from skyrocketing workers’ compensation insurance rates, was an extremely successful group self-insured fund. But applicable state regulations narrowly restricted the types of “like-minded” businesses that could be covered. Conversion enabled many more current and future members of the Michigan Retailers Association to participate in this cost-saving insurance program. Retailers Mutual also has greater flexibility in determining rates, dividends, investments and product lines.