Even when all the proper safety protocols are being followed, employees in Beverly, MA, sometimes suffer accidental injuries or occupational illnesses. In fact, in 2019 alone, Massachusetts workers reported approximately 86,000 on-the-job injuries.
Workers’ compensation insurance is designed to protect your business and your employees by covering the associated medical treatments and compensating injured workers for lost wages.
Some workers’ compensation insurance companies are better than others when it comes to covering businesses in certain industries. A local independent agent can help you find the best and most affordable coverage for your business. Find an insurance agent in or near Beverly to learn more.
Is Workers’ Compensation Insurance Required in Beverly?
All employers in Beverly must remain in compliance with Massachusetts’ employment laws. In this state, you are required to carry workers’ compensation insurance if you have at least one full- or part-time employee.
There are a few exceptions. For instance, it is not necessary to purchase coverage for sole proprietors, partners, LLC members, or for domestic workers who work for you fewer than 16 hours a week.
Failure to meet the Massachusetts’ requirements for carrying coverage opens your business up to lawsuits and legal action. If caught, your company can be issued a Stop-Work order and assessed fines and penalties. Additionally, you, as the business owner, could face fines and potential jail time.
How Much Does Worker’s Comp Insurance Cost in Beverly, MA?
The good news for employers in Beverly is that workers’ compensation insurance rates in Massachusetts are some of the lowest in the country. Your premiums will be based mainly on your company’s safety history, the types of work your employees do, and how much they are paid.
Each specific type of job is assigned a classification code, and base rates for each class code are regulated by the Workers’ Compensation Rating and Inspection Bureau of Massachusetts (WCRIBMA) according to how likely employees are to suffer serious injuries while doing them.
Commercial insurers use these rates as a starting point but are permitted to raise or lower rates in accordance with qualified discounts, incentives, and experience modifiers. That is why comparing rates from a few competing insurance companies can save you money.
Workers’ Compensation Base Rate Examples in Beverly
The following are samples of base rates paid per every $50,000 in employee payroll for three very different jobs that can be found in Beverly, MA.
- Tree trimmers/pruners/removers: $4,355 a year
- Truck drivers: $1,645 a year
- Office/clerical workers: $15 a year
As you can see, these rates can vary significantly from one job to another. This is because a person who is removing a 40-foot tree from your backyard is far more likely to be hurt on the job than a data entry clerk in an office environment.
What Does Workers’ Compensation Insurance Cover in Beverly, MA?
Workers’ compensation was created to cover medical treatments, disability pay, and death benefits if employees are injured or killed due to work related injuries or occupational illnesses.
This insurance not only protects your workers’ best interests, it also shields your business from potential liability lawsuits.
Coverage for medical treatments
Workers’ compensation is designed to pay for all costs associated with the treatment of work-related injuries and occupational illnesses.
This includes coverage for ambulance transport, emergency treatment, hospital stays, medical appointments, follow-up care, prescribed medications, physical therapy, and necessary devices like crutches and slings.
Workers’ compensation insurance can also reimburse employees for their mileage to and from medical appointments and the pharmacy.
Coverage for disability pay
Disability benefits can cover a large portion of your employee’s lost wages if they need to take more than six days off work to recuperate. There are different types of disability, including the following.
- Total temporary disability: If an employee is temporarily unable to work at all while recuperating from an injury or occupational illness, they can receive 60% of their average weekly pay for up to 156 weeks. The first six days of disability are covered only if the employee requires more than 21 days to recover.
- Partial temporary disability: If an injured employee is approved for light-duty or part-time work while recovering, workers’ compensation can make up 75% of the difference in pay if they are earning less money in their reduced capacity. This coverage can continue for up to 260 weeks.
- Total permanent disability: If an employee’s injury is so severe that they are left unable to work in any capacity, they can receive two-thirds their average weekly pay for as long as they are disabled. This benefit allows for annual cost-of-living increases.
The weekly benefit paid out for workers’ compensation disability cannot exceed the average weekly pay in Massachusetts, which as of October 1, 2020 stands at $1,487.78 a week. This amount is updated annually.
Coverage for fatal work injuries
Unfortunately, work-related injuries are sometimes fatal. Death benefits can ease the burden on surviving family members by covering burial costs and providing the spouse and dependents with ongoing bi-weekly benefits of two-thirds the deceased employee’s average wages.
Learn more about workers’ compensation disability and death benefits by talking with a local insurance agent.
What Does Workers’ Compensation Insurance Not Cover in Beverly, MA?
Workers’ compensation claims are occasionally denied. This may happen if a claim is filed too long after the injury took place or if the claim is for an injury or illness that falls outside the scope of what is covered by this insurance. Exclusions will typically be made if the injury occurred in these situations.
- Occurred while the employee was under the influence of drugs or alcohol
- Occurred while the employee was engaged in illegal activity
- Occurred outside of working hours
- Is related to a pre-existing condition
- Was intentionally self-inflicted
If an employee believes that a claim was unjustly denied, they can file an appeal with the Massachusetts Department of Industrial Accidents.
Where Can Beverly Business Owners Buy Workers’ Compensation Insurance?
In Massachusetts, workers’ compensation insurance can be purchased through any commercial provider that is licensed to issue coverage in this state.
If your business has a very high risk of worker injuries and you cannot find an insurance company that will cover it, you can obtain coverage through the Workers’ Compensation Rating and Inspection Bureau of Massachusetts (WCRIBMA). This is a last resort option.
A local independent insurance agent can help you purchase a suitable policy.
Why Work with an Independent Insurance Agent in Beverly, MA?
If you are an employer in Beverly and you are looking for the best and most affordable workers’ compensation insurance for your business, a local independent agent can help.
These agents can match you up with an insurance company that specializes in covering businesses like yours, and can make sure that you are getting your coverage at a competitive price. Contact an independent insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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