In recent years, Massachusetts has paid out $1.019 billion in workers' comp claims. Work-related injuries happen every day, from trips and falls to life-altering injuries, but having the right workers' comp coverage can help protect your business. For help navigating workers comp insurance coverage, find a local independent agent.
Workers' Compensation Coverages/Non-Coverages in Massachusetts
Employees need help paying for medical bills when they get injured on the job. Workers’ compensation insurance is designed to protect employees from the costs of workplace injuries, and protect employers from lawsuits and other unpredictable costs.
Here's a closer look at what workers' compensation covers and does not cover in the state of Massachusetts.
Workers' comp covers the following:
- Traumatic injuries
- Repetitive-type injuries
- Certain mental injuries
- Occupational diseases
Real-life example of coverage:
A waiter at a Massachusetts restaurant gets a severe burn from a hot plate. The employee gets taken to the hospital to be treated for their injuries. A workers' comp policy would help pay for any related medical treatments and other costs.
Workers' comp does not cover:
- Employee illnesses or injuries sustained outside of work
- Accidents that occur while an employee is intoxicated
- Intentional employee injuries to themselves at the workplace
|Workers' Compensation Coverage||Covered||Not Covered|
|Certain mental injuries||
|Employee illnesses or injuries sustained outside of work||
|Accidents that occur while an employee is intoxicated||
|Intentional employee injuries to themselves at the workplace||
An independent insurance agent can further explain what workers' compensation insurance both covers and excludes in Massachusetts.
Why Do You Need Workers Compensation Insurance in Massachusetts?
Workers' comp insurance is a necessity for most businesses for several reasons. For starters, it's actually required by law in most states, if your business has employees. Workers' comp also provides critical protection for your business against financial losses.
For most states, workers' comp is required immediately upon hiring a new employee. You'll want to be equipped with coverage before any of your workers get injured or ill on the job so that your business won't be held financially liable. Coverage doesn't kick in for workplace incidents until after you purchase a policy.
What Consequences Could You Face if You Don’t Have Workers’ Compensation in Massachusetts?
If your business doesn't carry workers' comp to protect your team, you could end up facing legal consequences like fines or jail time. Though some businesses think of workers' comp as optional or unnecessary due to the nature of their operations, coverage can provide important financial protection in case of an incident.
Workers' comp is mandatory in most states, including Massachusetts, if your business has one or more employees. Businesses in Massachusetts without the right workers' comp insurance can be subject to minimum fines of $100 per day, including weekends and holidays, that they lacked coverage.
Massachusetts Workers' Compensation Laws
Under Massachusetts law, employers with one or more full-time or part-time employees must secure workers’ compensation insurance. Massachusetts operates a no-fault workers’ compensation system in which an injured employee is entitled to receive benefits for a work injury or illness, regardless of who's at fault.
In Massachusetts, if an illness or injury is job-related, the injured worker receives medical benefits and may receive temporary compensation, if eligibility requirements are met. In some cases, an injured employee may also receive permanent compensation benefits and job retraining.
Get a Workers' Comp Quote in Minutes
Let our independent agents do all the heavy lifting while you save.
How Much Does Massachusetts Workman’s Comp Cost?
Massachusetts differs from most other states in that it maintains its own independent rating bureau. The Workers Compensation Rating & Inspection Bureau of Massachusetts (WCRIB) assigns rates according to its own classification rules.
Consider the following example:
- 0042 Landscaping: $4.09
- 5183 Plumbing: $3.45
- 5403 Commercial Carpentry: $11.00
- 8017 Retail Store: $1.07
- 8810 Clerical: $0.07
- 9079 Restaurant: $1.09
Most employers have employees in more than one classification. An electrician may employ a variety of office workers in addition to electricians. All of an employer’s class codes and related premiums are combined to determine the full Massachusetts workers’ compensation premium.
Massachusetts Workers’ Compensation Base Rate Examples
Rates for workers' comp insurance in Massachusetts are above average. They may vary among insurance companies based on underwriting standards and credits offered by individual insurers.
Here are some sample base rates (rate per $100 of employer payroll):
- Premium: $100,000
- Mod: 0.75 (25% premium credit)
- Premium with mod credit applied: $75,000
- Premium: $100,000
- Mod: 1.0
- Premium is not adjusted
- Premium: $100,000
- Mod: 1.25 (25% premium surcharge/debit)
- Premium with mod debit applied: $125,000
Workers' Comp Cost Per Employee in Massachusetts
The cost of workers' comp coverage per employee increases with higher company payrolls, as these businesses cost more to insure. Check out a breakdown of how workers' comp costs vary by payroll range in each specific industry below.
Annual Workers' Comp Cost Per Employee
|Industry||Lower Cost||Medium Cost||Upper Cost|
|Finance and Insurance||$705||$1,273||$4,659|
|Hotels / Motels||$517||$1,162||$4,907|
|Manufacturing and Food Production||$915||$1,739||$6,612|
|Professional and Technical Services||$662||$1,310||$5,124|
|Restaurants and Taverns||$210||$468||$1,970|
|Transportation and Warehousing||$1,577||$3,106||$12,106|
Businesses that have a greater track-record of safety and fewer accidents pay less for their coverage. Insurance companies have complex formulas to reset your rates after an accident, likely leading to a noticeable spike in your premiums.
Best Workers' Comp Companies in Massachusetts
Workers' comp is available from many different insurance companies in Massachusetts. Here are just a few of our top picks for quality workers' comp insurance carriers.
|Top Workers' Compensation Insurance Companies||Star Rating|
|Builders & Tradesmen's Insurance|
An independent insurance agent can help you look into these workers' comp insurance companies and get matched to the carrier who best meets your needs at the most affordable rate.
Top 6 Most Common Workers' Comp Claims/Injuries
- Lacerations: In other words, deep cuts. These can happen in any industry, but are especially common in the restaurant and manufacturing fields.
- Sprains/strains: Again, these injuries can happen in any industry, but are especially common in job settings where lots of twisting and turning is required.
- Contusions: In other words, bruises and other marks on the skin caused by impact. Contusions often happen from dropped objects, improper lifting, or colliding with an object.
- Burns: Burns can happen in any industry that has a heat source, including restaurants, construction businesses, bakeries, and more.
- Eye injuries: Eye injuries are most frequent in industries that require chemicals, including manufacturing, painting, and construction.
- Fractures: Fractures can happen to employees anywhere, but are especially common in industries that require a lot of movement and the use of heavy machinery.
Why Are Independent Insurance Agents Awesome?
It’s simple. Independent insurance agents simplify the process by shopping and comparing insurance quotes for you. Not only that, but they’ll also cut the jargon and clarify the fine print, so you know exactly what you’re getting.
There’s no business too small for our independent insurance agents. They have access to multiple insurance companies, ultimately finding you the best workers' comp coverage and competitive pricing while working for you.
TrustedChoice.com Article | Reviewed by Paul Martin
©2021, Consumer Agent Portal, LLC. All rights reserved.