MassachusettsWorkers' Compensation

Find the Best Workers' Compensation Insurance Options in Massachusetts

There are about 670,000 small business owners in Massachusetts. Every business owner in Massachusetts should consider getting workers' compensation insurance for their company to get reimbursed for lost wages and medical expenses after an employee gets injured or ill due to their job. Workers' comp is typically mandatory for most businesses across the country. In Massachusetts, workers' comp is mandatory for businesses with one or more employees, with only a couple of exceptions.

An independent insurance agent in Massachusetts can help your business get equipped with the right workers' comp. They'll get you matched to a policy with the right amount of coverage at a great price. But until then, here's an overview of Massachusetts workers' comp requirements and more.

Massachusetts Workers' Compensation Laws

Massachusetts workers' compensation requirements may vary depending on a business's industry. However, most businesses in Massachusetts with at least one employee must have workers' compensation insurance by state law. Businesses without employees usually aren't required to carry coverage. This goes for sole proprietors and others.

How Does Workers' Compensation Insurance Work in Massachusetts?

In Massachusetts, workers' compensation insurance can offer benefit payouts to an employee who gets ill or injured due to the job site or duties. For expenses to be covered, the incident must have been due to an unsafe job site, repeated work tasks, or the equipment or materials used on the job. Massachusetts workers' comp can also work by replacing a portion of an employee's regular wages or salary if they miss work to recover or get treatment. Massachusetts workers' comp can reimburse a business for the costs of labs, prescription medications, and doctor's or hospital visits.

With workers' comp as a part of a Massachusetts business insurance policy, your company is also exempt from employee lawsuits related to covered incidents. Also, family members of these affected employees are unable to sue the business. Having workers' comp insurance in Massachusetts can help protect your workers and your overall business from possible financial losses that could otherwise be extremely pricey.

Massachusetts Workers' Compensation Exemptions

Massachusetts has a few exemptions to its state workers' comp laws. Understanding these exemptions is key for business owners. Massachusetts workers' comp exemptions include the following types of workers and industries:

• Commission-based workers who are under contract specifying they're not employees by federal tax laws
• Interstate and foreign commerce workers who are covered by federal law
• Part-time domestic service workers

A Massachusetts independent insurance agent can help determine if your business is required by state law to have workers' comp and how much it needs.

Do Independent Contractors Need Workers’ Comp Coverage?

Independent contractors in Massachusetts don't need to be covered by workers' comp according to state law if a business meets a few specific criteria. These include being able to prove that an independent contractor doesn't work under your direct control or supervision, providing proof that their work is outside of your business's normal course, and providing documentation that they have an independent business in that field. If your business can meet these qualifications, it's not required by state law to cover independent contractors with workers' comp.

However, many businesses and independent contractors still decide to get coverage. If you work as an independent contractor in Massachusetts, you may not have to worry about workers' comp requirements or possible resulting penalties from not having coverage, but you may still want to get a policy to have that protection. Not having coverage could possibly end up costing you much more than the cost of workers' comp premiums if an incident occurs.

Do Massachusetts Business Owners Need to Be Covered by Workers’ Compensation?

In a few specific instances, Massachusetts business owners also don't need to be covered by workers' comp. These include sole proprietors, partners in limited liability partnerships (LLPs), and members of LLCs. These types of business owners in Massachusetts aren't required to have workers' comp by state law.

Still, having workers' comp anyway can help you save thousands of dollars or more if there's a catastrophe. Even one unexpected workplace incident can result in the need for costly medical treatment and lost time from work, so you may still want to get coverage to stay safe. Without workers' comp, you could have to pay these costs by yourself, which could result in a huge loss for you or your business.

What Does Massachusetts Workers' Compensation Cover?

Massachusetts workers' comp can reimburse many potential costs related to covered incidents of employee injuries or illnesses. Covered expenses can include doctor's visits, hospital stays, medications, treatments, and more. Many expenses can result from an employee's injury or illness. Massachusetts workers' comp can also replace a portion of an affected employee's regular wages or salary if they have to miss work.

Massachusetts workers' comp also compensates for funeral costs if a serious incident leads to an employee's death. This coverage exempts a business from employee lawsuits for covered incidents. The affected employee's family members cannot sue the business either if workers' comp was available. Having workers' comp for your Massachusetts business is critical for protecting both your team and the company itself.

Here's a larger glimpse into what workers' comp covers in Massachusetts:

• Death benefits: Workers' comp can also help pay death benefits for employees who die due to a covered incident. The death benefits are most often paid to an employee's surviving dependent family members or spouse.
• Funeral costs: Workers' comp can even help cover funeral costs for deceased employees due to a covered incident. Reimbursement can apply to burial costs, coffins, and more.
• Ongoing care: Workers' comp can help pay for required ongoing care costs to continue treating a covered injury or illness. For example, if a worker needs physical therapy due to a workplace injury, this coverage can help pay for that cost.
• Medical expenses: Workers' comp can help pay for medical expenses after covered incidents, including prescription medications. For example, if an employee needs a prescription for chronic pain due to their job tasks, workers' comp can pay for it.
• Disability benefits: Workers' comp can also help pay for disability benefits, including temporary total disability benefits, permanent partial disability benefits, and permanent total disability benefits. If an employee qualifies for disability benefits due to a workplace incident, workers' comp can help cover these costs.
• Time off during recovery: Workers' comp can help pay to replace some of an employee's wages while they take time off work to recover from a covered incident. For example, if an employee needs to stay at the hospital for two weeks after surgery due to a workplace incident, workers' comp can help continue some of the wages they would've made working during that time.

A Massachusetts independent insurance agent can help you review your policy's coverage in full so you can understand exactly what's covered.

How Much Does Workers’ Compensation Insurance Cost in Massachusetts?

The average cost of workers' compensation insurance in Massachusetts is $30 per month or $360 per year. The cost of workers' comp insurance can vary based on a number of factors, though. For example, the exact number of employees your business has and its annual payroll strongly impact the cost of your workers' comp policy.

The exact location and industry of your business can also influence its workers' comp premium costs. Some industries have an inherently higher risk level, including those in the trucking industry and the construction industry, so insurance companies charge more for coverage. A business's prior claims history and the limits applied to coverage also impact the cost of workers' comp.

How Can Massachusetts Business Owners Save Money on Workers’ Comp?

Massachusetts business owners have options to save money on workers' comp premiums. A "pay-as-you-go" payment option is available and offers a low upfront premium. Using this payment method also gives your business the ability to buy coverage based on actual payroll instead of its projected or estimated payroll, which can really bring down premium costs. Another option to save on workers' comp premiums is through hiring seasonal or casual employees.

If your business completed a safety program, this can also help bring down the cost of your workers' comp policy. Since insurance companies like to see that a business has made efforts to reduce the risk of workplace incidents that could result in claims, take some time to submit proof of this to yours. Also, requiring your employees to complete safety training is another way to save money on workers' comp, provided you send proof to your insurer.

What Are the Penalties for Not Having Workers' Comp in Massachusetts?

Business owners in Massachusetts who don't comply with the state's laws for workers' comp can be charged with fines and face other harsh penalties. Business owners in Massachusetts can be issued a stop-work order by the state's Department of Industrial Accidents Office of Investigations. Each day this order is in effect, the business will be charged a $100 fine.

These fines can continue until the business gets the required workers' comp coverage and has paid off its existing fines. These business owners can also be barred from receiving public contracts for a maximum of three years in addition to the stop-work order. Having the required amount of workers' comp for your business can help you to avoid such penalties and fines.

How to Buy Workers' Compensation Insurance in Massachusetts

Massachusetts offers multiple options for buying workers' compensation. The first option is to buy workers' comp via the state’s assigned risk residual market. A Massachusetts business owner can also choose to self-insure their company if they meet qualifications. But another method for a Massachusetts business owner to buy workers' comp is over the internet, which can be a fast and easy way to get coverage.

However, the overall easiest method of obtaining workers' comp in Massachusetts is by working with a local independent insurance agent. These agents can shop and compare policies from many different Massachusetts insurers for you. They'll get you matched to a policy with the best blend of coverage and cost.

Best Workers' Compensation Insurance Companies in Massachusetts

You can find workers' comp from a number of different carriers in Massachusetts. However, we know you're looking for the best around. That's why we put together this list of some of the best workers' comp insurance companies in Massachusetts. Check into these outstanding carriers first.

• Progressive: Progressive has been around for decades and has an outstanding financial strength rating from AM Best. The carrier also offers 24/7/365 customer service.
• Nationwide: Nationwide is a longstanding carrier with an excellent reputation thanks to its outstanding Better Business Bureau (BBB) and AM Best ratings. The carrier also offers 24/7 claims support.
• Travelers: Travelers is another longstanding carrier with excellent customer feedback. Travelers is known for affordable rates, many discount and endorsement options, and strong financial strength.
• Liberty Mutual: Liberty Mutual is a Fortune 500 company with a reputation for providing quality service and coverage. The carrier also has excellent AM Best and BBB ratings and provides 24/7 claims reporting.

A Massachusetts independent insurance agent can help you find the workers' comp your business needs from one of these top-rated local carriers.

What Are the Best Workers' Compensation Companies in Massachusetts?

Top Workers' Compensation Insurance Companies	Star Rating
Progressive
Nationwide
Travelers
Liberty Mutual

FAQs: Workers' Compensation in Massachusetts