Workers Compensation Insurance in Massachusetts

What is Workers Comp Insurance?

Workers comp insurance helps protect businesses against covered claims that are filed by employees who have work-related injuries and illnesses. A policy will typically cover both expenses for medical services and lost wages, as long as they’re directly related to the injury or illness (exact coverages can vary from one policy to another).

What Businesses in Massachusetts Need Workers Compensation Insurance?

Per state law, almost all businesses in Massachusetts that have employees must carry workers compensation insurance. Employees are generally workers who receive a W2 at the end of the year for filing taxes (there may be exceptions to this guideline).

Limited liability companies (LLCs), limited liability partnerships (LLPs), unincorporated businesses, and sole proprietorships that don’t have employees may not be legally required to have workers comp insurance. These companies, partnerships, businesses and proprietorships should still consider purchasing coverage for the business’ owners, though. 

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Workers Compensation Insurance Massachusetts

Who Does Workers Comp Insurance Cover?

Workers comp insurance typically covers all of the employees that a business has, regardless of their position or how many hours they work. A janitor who works part time is usually covered just as much as a mid-level manager who spends more than 50 hours a week at the office.

As mentioned, a workers comp policy might also cover a business’ partners or owners. This depends on the partners or owners role in day-to-day operations, and the terms of the policy’s business.

There are a few, uncommon, cases where workers comp policies extend coverage to subcontractors. These are rare situations, and most subcontractors are responsible for their own insurance (subcontractors may be given a 1099 for filing taxes; they don’t usually receive a W2).

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What Influences Worker Comp Insurance Rates?

As is the case with most insurance policies underwriters consider many factors when determining a workers compensation policy’s rates. A few of the factors that can affect a policy’s premiums include:

  • How many employees a business has
  • What employees’ salaries are
  • What industry the business operates in
  • How many workers compensation claims the business has previously filed

Workers Compensation Insurance Massachusetts

How Can Businesses Get a Workers Compensation Policy?

Some states have a state-run workers compensation fund, but Massachusetts doesn’t. Businesses, therefore, must purchase a workers compensation insurance policy from the open market. An independent insurance agent who helps businesses with their insurance needs can guide a business through this process.

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Your Employees (and Business) Deserve It

Tens of thousands of employees suffer work-related injuries and illnesses each year. Many of the injuries and illnesses require hospitalization, and a significant number are fatal. If an employee suffers an injury or illness due to their work, their employer is usually responsible for the financial costs of medical treatment and any lost wages that the employee incurs. Workers compensation insurance helps protect businesses from these potential costs. Without insurance coverage, these expenses could devastate many Massachusetts businesses.

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