Michigan Siding Contractor Insurance
From Detroit to Grand Rapids, Michigan requires a Residential Builder license once a siding contract with a homeowner crosses just $600, and prices workers’ comp through its own independent rating bureau, CAOM, rather than NCCI. We build coverage around that framework.
Carriers We Represent
Why Michigan Siding Contractors Need Specialized Coverage
Siding installation is height work — every job puts a crew on ladders or staging against a 1-to-3-story wall — and the completed panel carries a delayed-failure risk: water intrusion or panel separation from wind often doesn’t surface until well after the crew has moved on.
Michigan requires a Residential Builder or Maintenance and Alteration Contractor license once a homeowner contract reaches just $600, workers’ comp kicks in at 3 employees or one employee working substantial hours, and Michigan runs its own workers’ comp rating bureau, CAOM, distinct from NCCI. We build the program around those specifics.
Michigan Licensing, Compliance & Requirements for Siding Contractors
Michigan’s LARA Bureau of Construction Codes requires a Residential Builder or Maintenance & Alteration Contractor license for siding work once a homeowner contract reaches just $600 — a notably low threshold compared to most states. Licensure requires 60 hours of pre-license education.
Workers’ comp is required once you have 3 or more employees at one time, or a single employee working 35+ hours a week for 13 or more of the preceding 52 weeks. Michigan is a private-carrier state, not monopolistic. Under Michigan’s Home Solicitation Sales Act (MCL 445.112), customers can cancel a siding contract signed at home until midnight of the 3rd business day. Job-site safety runs through Michigan’s own state OSHA program, MIOSHA. Notably, Michigan does not use NCCI for workers’ comp rating — it runs its own independent bureau, the Compensation Advisory Organization of Michigan (CAOM).
- Residential Builder or Maintenance & Alteration Contractor license required from LARA once a homeowner contract reaches just $600
- 60 hours of pre-license education required
- Workers’ comp mandatory at 3+ employees at one time, or 1 employee working 35+ hrs/week for 13+ of the prior 52 weeks
- In-home siding contracts give customers a 3-business-day cancellation right (MCL 445.112)
- MIOSHA, Michigan’s own state OSHA program, enforces job-site safety
- Michigan uses its own independent workers’ comp rating bureau, CAOM, instead of NCCI
Core Coverages for Michigan Siding Contractors
Most Michigan siding contractors build a program around general liability and workers’ comp, then layer in the coverages below that address the trade’s specific height-work and completed-operations risk.
- General liability for property damage and bodily injury during install, repair, or removal
- Completed-operations coverage for water intrusion or panel failure discovered after the job is done
- Workers’ compensation once you cross Michigan’s 3-employee or 35-hour/week threshold
- Tools and equipment (inland marine) covering brake/bending tools, nail guns, and lifts on the job or in transit
- Installation floater or builder’s risk coverage for siding panels and trim staged on site before install
- Commercial auto for trucks and trailers hauling siding materials and staging equipment
- Contractor’s errors & omissions for disputes over finish quality or spec compliance
- Residential Builder license bond, plus a project-specific surety bond where required
What Drives Siding Contractor Insurance Costs in Michigan
Michigan is one of the few states with genuinely citable, state-specific workers’ comp rate data through CAOM: class code 5645 (carpentry, incl. siding) is filed at approximately $7.10 per $100 of payroll (effective 1/1/2025), and code 5403 at approximately $7.77 per $100 of payroll. Confirm the current figure against CAOM’s own rate circular before quoting.
| Business Size | General Liability (Annual) | Workers’ Comp (Annual, CAOM Class 5645/5403) | Est. Total Annual Premium |
|---|---|---|---|
| Solo / small crew (under WC threshold) | $700 – $1,300 | N/A below 3 employees / 35 hrs-week | $700 – $1,300 |
| Small crew (3–5) | $1,300 – $2,500 | $7.10–$7.77 per $100 payroll | $3,500 – $6,600* |
| Established (6+) | $2,500 – $4,500 | $7.10–$7.77 per $100 payroll | $7,300 – $13,200* |
*Total estimates apply CAOM’s filed rate for Class 5645/5403 (effective 1/1/2025) against typical payroll bands — confirm the current CAOM circular before quoting. GL ranges are national siding-installation benchmarks. Actual premiums vary by payroll, experience modifier, claims history, and carrier appetite.
- Payroll size, since CAOM prices siding-related carpentry codes per $100 of payroll
- Whether you cross Michigan’s 3-employee or 35-hour/week workers’ comp threshold
- Building height and story count, since fall-protection and completed-operations exposure scale with height
- Vehicle count and radius of operation for the commercial auto line
- Claims history, including any prior water-intrusion or wind-damage claims
- Whether a commercial contract requires a surety bond in addition to insurance
Why Michigan Siding Contractors Choose The Allen Thomas Group
As an independent, family-owned agency, we place Michigan siding contractors across more than fifteen A-rated carriers rather than pushing one company’s product.
- Independent access to 15+ A-rated carriers, matched to your crew size and height-work exposure
- Family-owned guidance since 2003 with an A+ BBB rating
- Hands-on help navigating LARA licensing and Michigan’s CAOM rating system
- Coordinated programs across general liability, tools, materials, auto, and bonds with no gaps
- Certificates of insurance and additional-insured endorsements issued fast for GCs and property managers
Frequently Asked Questions
Do I need a license to install siding in Michigan?
Yes, in most cases. Michigan requires a Residential Builder or Maintenance & Alteration Contractor license from LARA once a homeowner contract reaches just $600 — a notably low threshold compared to most states.
Is workers’ comp required for a small siding crew in Michigan?
It depends on headcount and hours. Coverage is required once you have 3 or more employees at one time, or a single employee working 35+ hours a week for 13 or more of the preceding 52 weeks.
Can a customer cancel a siding contract signed at their home in Michigan?
Yes. Under the Home Solicitation Sales Act (MCL 445.112), customers can cancel until midnight of the 3rd business day.
Why does Michigan use CAOM instead of NCCI for workers’ comp?
Michigan runs its own independent workers’ comp rating organization, the Compensation Advisory Organization of Michigan (CAOM), rather than relying on NCCI’s national rate filings — CAOM does publish specific rates for carpentry-related codes that cover siding work.
What insurance covers siding that fails or leaks after installation?
Products-completed-operations coverage, typically written within general liability, responds when a completed siding job later causes water intrusion or panel failure.
What insurance covers siding materials staged at a jobsite before installation?
An installation floater or builder’s risk policy, not general liability, typically covers siding panels and trim staged on-site or left in a truck before install.
Are my brake tools and lifts covered between jobs?
Not automatically under general liability. They’re covered under inland marine (tools & equipment) coverage, which follows the property to the jobsite, in transit, and in storage.
What drives the cost of siding contractor insurance in Michigan?
Payroll (CAOM prices per $100 of payroll), whether you cross the 3-employee/35-hour threshold, building height and story count, vehicle count, and claims history.
Protect Your Michigan Siding Contractor Business
We compare more than fifteen A-rated carriers to build siding contractor coverage around your crew, your equipment, and your Michigan jobsites.