Employees sometimes get hurt on the job. When this happens, workers’ compensation insurance can cover the associated costs. This mandatory insurance protects employees and business owners alike by preventing accidental injuries from resulting in unmanageable expenses.
If you are among the many employers in Concord, a local independent insurance agent can help you find the best and most affordable workers’ compensation policy to cover your business. Find an insurance agent near you to learn more.
Are Businesses in Concord Required to Have Workers’ Compensation Insurance?
Virtually all Concord businesses are required by Massachusetts law to carry workers' compensation insurance. With very few exceptions, you must carry this insurance if you have at least one employee, even if that person is part time.
Out-of-state employers are also required to carry coverage for all employees working in the Commonwealth.
Failure to carry required coverage puts your business at risk for potential lawsuits. It can also result in your company being issued a Stop Work Order (SWO) and a fine of $100 a day, including weekends and holidays, from the time the SWO is issued until insurance coverage starts and the fine is paid in full.
Additionally, business owners whose companies are issued SWOs can face criminal charges, fines, and up to one year in prison. In other words, it is not worth it to try to avoid buying this mandatory coverage.
How Much Does Workers’ Compensation Insurance Cost in Concord?
Employers in Concord should be happy to learn that Massachusetts is the fourth least expensive state in the country when it comes to workers’ compensation insurance. Rates can vary significantly from one business to the next because costs are calculated based mainly on the following.
- Your company’s overall payroll amount
- The number of employees you have
- The types of jobs your employees do and the likelihood they will be hurt while doing them
- Your company’s claims history and safety record
The more likely an employee is to be injured on the job, the more it will cost to cover them. Therefore, it would cost more to cover a nurse in the emergency room at Emerson Hospital than it would to cover an office worker at the Concord Meadows Corporate Center.
What Are Some Base Rate Examples in Concord?
Every type of job is assigned a classification code, and coverage base rates for each of these class codes are regulated by the Commonwealth’s Workers’ Compensation Rating and Inspection Bureau (WCRIBMA).
Insurance companies must use these base rates when calculating costs, but they are permitted to be competitive by offering discounts, credits, and incentives at their discretion. That is why it pays to compare rates before making a purchase.
Let’s take a look at the base rate per every $50,000 in employee payroll for three very different jobs you can find in Concord, MA.
- Roofers: $7,120 a year
- Tow truck drivers: $1,645 a year
- Clerical and office employees: $15 a year
As you can see, the costs to cover these different jobs vary significantly. Because clerical workers have a very low risk of being injured on the job, rates for coverage are nominal. However, roofers risk sustaining significant injuries, so rates to cover them are much higher.
The easiest way to find out how much a workers’ compensation policy will cost for your business is by contacting insurance companies and requesting customized quotes. A local independent insurance agent can do this on your behalf.
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What Does Concord Workers’ Compensation Insurance Cover?
Workers’ compensation insurance is designed to cover the various costs that are associated with on-the-job injuries and occupational illnesses. You can expect your policy to cover the following.
- Medical treatments: Your policy will cover all necessary medical care related to occupational illnesses and injuries. This includes ambulance rides, hospital stays, doctor’s appointments, prescription medications, physical therapy, medical equipment and devices, and other related expenses. Employees should pay nothing out of pocket.
- Travel reimbursement: Workers’ compensation can reimburse employees for miles driven to and from medical appointments and the pharmacy.
- Temporary total disability: If an employee needs to take more than six days to recuperate from a work-related injury, they will be able to collect a weekly benefit of 60% of their weekly pay until they can return to work, for up to 156 weeks.
- Temporary partial disability: If an employee’s injury enables them to continue working but in a limited capacity, workers’ compensation can make up 75% of their difference in pay if they must accept lower wages. This benefit can continue for up to 260 weeks.
- Permanent disability: If a work-related injury is so severe that the injured worker will be unable to ever return to their job, workers’ compensation insurance can provide them with an ongoing weekly benefit of two-thirds their average wage. This benefit comes with an annual cost-of-living increase.
- Survivor benefits: If a work-related injury or illness leads to a fatality, workers’ compensation can ease the financial burden on surviving family members by covering burial expenses up to $10,000 and by providing the employee’s spouse and dependents with ongoing compensation of two-thirds the employee’s average weekly wage.
Weekly disability benefits cannot exceed the state’s average weekly wage, which is adjusted annually. As of October 1, 2020, the maximum weekly disability payment was set at $1,487.78.
What Does Concord Workers’ Compensation Insurance Not Cover?
Workers’ compensation claims are sometimes denied. This may happen if a claim is filed for a non-covered event such as the following.
- Injuries that occurred when the employee was under the influence of drugs or alcohol
- Injuries that occurred outside of working hours
- Injuries or illnesses related to pre-existing conditions
- Injuries that were intentionally self-inflicted
- Injuries incurred by workers who were not official employees of the insured at the time of the incident
If one of your employees believes that a claim was unjustly denied, they can appeal the decision to the Massachusetts Department of Industrial Accidents.
Where Can Concord Business Owners Buy Workers’ Compensation Coverage?
Workers’ compensation insurance can be purchased through any of the many commercial providers that are authorized to sell workers’ compensation policies in the Commonwealth of Massachusetts.
High-risk businesses that are unable to obtain coverage through a commercial provider can purchase an assigned risk policy through the Workers’ Compensation Rating and Inspection Bureau. These policies will be more expensive, but the coverage is guaranteed.
Your company does have the option to self-insure, but you will first need to apply for approval and demonstrate that your business has the financial means to do so.
Most business owners in Concord purchase their coverage through a commercial provider.
How to Find the Best Workers’ Compensation Insurance in Concord, MA
Let an independent insurance agent help you find the best workers’ compensation policy to cover your Concord business. These agents can obtain customized quotes from top-rated insurance providers that specialize in covering businesses like yours. That way, you can be sure you are getting the coverage you need at a competitive price.
Discover how easy it can be to find an ideal workers’ compensation policy for your business when you contact an independent insurance agent near you.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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