Employees sometimes get injured on the job. In fact, Massachusetts has a rate of 2.7 injuries per every 100 full-time workers. That is why workers’ compensation insurance companies pay out more than $1 billion in claims in this state every year.
If you are among the many employers in Hyannis, MA, an independent insurance agent can help you find the best and most affordable workers’ compensation policy to cover the people who work for you. Contact an insurance agent near you to learn more.
What Is Workers’ Compensation Insurance?
Workers’ compensation insurance is a commercial insurance product that is designed to cover the costs associated with workplace injuries and occupational illnesses.
This insurance can help you rest assured that injury-causing accidents at your place of business do not result in unmanageable expenses for your company or your employees.
Are Businesses in Hyannis Required to Have Workers’ Compensation Insurance?
With very few exceptions, all employers in Hyannis are required by Massachusetts state law to carry workers' compensation insurance.
Out-of-state employers are also required to carry coverage for all employees working in the Commonwealth. Policies must be purchased through an insurance provider that is authorized to sell coverage in Massachusetts.
Failure to carry this required coverage exposes your business to potential lawsuits, and it can have other consequences as well.
Uninsured companies can be issued a Stop Work Order (SWO) and fined $100 a day, including weekends and holidays, from the time the SWO is issued until a workers’ compensation insurance policy is acquired and all fines are paid in full. Additionally, business owners can face criminal charges, fines, and up to one year in prison.
Let a local independent agent help you find the coverage your business needs at a competitive price.
How Much Does Workers’ Compensation Insurance Cost in Hyannis?
As an employer in Hyannis, you may 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 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 overall payroll amount
- Your company’s claims history and safety record
More dangerous jobs cost more to cover. Therefore, you would expect a worker at the Cape Cod Potato Chips manufacturing plant to cost more to insure than a retail worker at the Cape Cod Mall.
What Are Some Base Rate Examples in Hyannis?
Every occupation is assigned a classification code and coverage rates for each of these class codes are set and regulated by the Workers’ Compensation Rating and Inspection Bureau of Massachusetts (WCRIBMA).
Insurance companies are required to use these designated base rates when calculating costs, but they can be competitive by offering their policyholders discounts, credits, and incentives. That is why it is beneficial to compare rates before making a purchase.
Let’s take a look at the base rates per every $50,000 in employee payroll for three very different jobs that can be found in Hyannis, MA:
- Drywall installers: $2,800 a year
- Plumbers and plumbing contractors: $1,410 a year
- Retail store workers: $220 a year
The easiest way to find out how much a workers’ compensation policy will cost for your business is to request a few customized quotes. A local independent insurance agent can do this on your behalf.
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What Does Hyannis Workers’ Compensation Insurance Cover?
Workers’ compensation insurance is designed to cover the various costs related to on-the-job injuries and occupational illnesses. You can expect your policy to cover the following:
Medical treatments: All necessary medical care related to the workplace injury, including ambulance rides, hospital stays, medical appointments, follow-up care, prescription medications, physical therapy, and other treatments will be covered in full. Injured employees can even get reimbursed for miles driven to and from doctor’s appointments.
Disability pay: Employees can receive disability pay in amounts based on their average weekly wages in the months prior to the accident. There are a few different types of disability:
- Temporary total disability: If an employee needs to take more than six days to recuperate from a work-related injury, they can collect 60% of their average weekly pay until they are able 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 for up to 260 weeks.
- Permanent disability: If a work-related injury leaves an employee permanently disabled, workers’ compensation insurance can provide them with an ongoing weekly benefit of two-thirds their average wage. These benefits come with an annual cost-of-living increase.
Death benefits: If a work injury or occupational illnesses is fatal, workers’ compensation can cover burial costs and can provide the deceased employee’s spouse and dependents with two-third their weekly pay for as long as they qualify.
You can learn more about workers’ compensation insurance by speaking with an independent insurance agent in Hyannis.
What Does Hyannis Workers’ Compensation Insurance Not Cover?
There are cases where workers’ compensation claims may be denied by your insurance carrier. For instance, your insurance company isn’t like to cover injuries that:
- Happened while the employee was under the influence of drugs or alcohol
- Occurred outside of working hours
- Are related to pre-existing conditions
- Were intentionally self-inflicted
- Took place while the worker was committing a crime
Denied claims may be appealed by petitioning the Massachusetts Department of Industrial Accidents.
Where Can Hyannis Business Owners Buy Workers’ Compensation Coverage?
Most employers in Hyannis purchase workers’ compensation insurance through any of the many commercial providers that are authorized to sell policies in Massachusetts.
Some businesses owners may be unable to obtain coverage through a commercial provider due to having a poor safety record or because of the high-risk nature of the jobs their employee do. These employers can purchase an assigned risk policy through the Workers’ Compensation Rating and Inspection Bureau of Massachusetts.
Alternatively, your company may opt to self-insure. To do so, you will need to first apply for approval and demonstrate that your business has the financial means to do cover the costs associated with workplace injuries and occupational illnesses.
How to Find the Best Workers’ Compensation Insurance in Hyannis, MA
A local independent insurance agent can help you find the right workers’ compensation policy to cover your Hyannis business. Because they are free to work with several different insurance providers, an agent can present you with a variety of customized quotes. That way, you can be sure you are getting the coverage you need at a competitive price.
Arrange a one-on-one consultation with an insurance agent near you to discover how easy it can be to find an ideal workers’ compensation policy for your business.