Workers in the Bay State sometimes get hurt on the job. In fact, the Massachusetts Department of Industrial Accidents processes more than 50,000 workers’ compensation insurance claims every year. In 2018 alone, insurance companies paid out more than $1 billion to injured workers in this state.
A local independent insurance agent can help you find the best and most affordable workers’ compensation policy to cover your employees in Milford. Contact an insurance agent near you to start comparison shopping.
What Is Workers’ Compensation Insurance?
Worker’s compensation insurance (also known as workers’ comp) is a policy that is designed to cover the costs associated with workplace injuries and occupational illnesses, including medical treatments and lost wages.
This insurance protects your employees’ financial well-being while also shielding your business from potential liability lawsuits.
Is Workers’ Compensation Insurance Required in Milford, MA?
Massachusetts mandates that you must carry workers’ compensation coverage if you employ at least one full- or part-time worker. You are not required to cover domestic servants who work fewer than 16 hours a week or sole proprietors, partners, or LLC members who are not also considered employees.
Out-of-state employers must cover their in-state workers with a policy purchased from an insurance company that is licensed to provide workers’ compensation in the Commonwealth of Massachusetts.
Failure to carry this required coverage is illegal and can result in fines and jail time for the company owners. Also, your company can be issued a Stop Work Order (SWO) and fined $100 a day, including weekends and holidays, until workers’ compensation coverage is purchased and all fines are paid in full.
How Much Does Workers’ Compensation Insurance Cost in Milford?
If you are a Milford business owner looking for an affordable workers’ compensation policy, you will be happy to learn that Massachusetts is the fourth least expensive state in the country for workers’ comp coverage.
Your company’s premiums will be based primarily on the number of employees you have, how much they are paid, and how likely they are to be injured on the job based on the types of jobs they do.
The more likely an employee is to be seriously injured while working, the higher the rates for workers’ compensation insurance will be. Therefore, it would cost more to cover an ER nurse at Milford Regional Hospital than it would to cover a data analyst at the Waters Corporation.
What Are Some Base Rate Examples in Milford?
In Massachusetts, every occupation is assigned a classification code, and coverage base rates for each of these class codes are set and managed by the Workers’ Compensation Rating and Inspection Bureau.
Insurance companies are required to use these designated base rates when calculating costs, but they can maintain a competitive edge by offering discounts and credits at their discretion. That is why shopping around for the best rate can save your business money.
Let’s take a look at the base rates for every $50,000 in employee payroll for three very different jobs that can be found in Milford, MA.
- Roofing repair and installation contractors: $7,120 a year
- Landscapers and lawn maintenance workers: $1,570 a year
- Sales and service professionals: $25 a year
Roofing is among the most expensive occupations to cover in Massachusetts because the risk of employees sustaining serious injuries on the job is very high. Salespeople, on the other hand, rarely suffer on-the-job injuries that require medical attention.
The only way to find out how much a workers’ compensation policy will cost for your Milford business is by requesting customized quotes from a few competing insurance providers. A local independent insurance agent can save you time and money by doing this on your behalf.
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What Does Milford Workers’ Compensation Insurance Cover?
If an employee is injured on the job or is diagnosed with an occupational illness, you can expect your workers’ compensation policy to cover the following situations.
- Medical treatments: Injured employees will have all necessary medical costs covered in full. This includes any associated ambulance rides, follow-up care, medications, physical therapy, equipment like slings and crutches, and other expenses.
- Travel reimbursement: Injured employees may receive compensation for miles driven to and from medical appointments and the pharmacy.
- Temporary total disability: Employees who need more than six days off to recuperate from a work-related illness or injury can collect a weekly benefit of 60% of their average pay until they are released to return to work, for up to 156 weeks.
- Temporary partial disability: Employees who are recovering from an injury but who are released by their doctor to return to work in a limited capacity can receive compensation of up 75% of the difference in pay, for up to 260 weeks.
- Permanent disability: Employees whose injuries or occupational illnesses leave them permanently disabled are entitled to receive a weekly benefit of two-thirds their average wage indefinitely. This benefit comes with an annual cost-of-living increase.
- Death benefits: If a work-related injury or illness is fatal, workers’ compensation can cover burial expenses and provide the employee’s spouse and dependents with two-thirds the employ’s average weekly pay for as long as they qualify for this benefit.
Weekly disability benefits cannot exceed Massachusetts’ average weekly pay, which is updated annually. As of October 1, 2020, the maximum weekly benefit is set at $1,487.78.
What Does Milford Workers’ Compensation Not Cover?
As with any insurance policy, workers’ compensation has limitations on what it will cover. For instance, your claim is likely to be denied if a worker’s injury occurs in the following situations.
- Injuries that are believed to have been intentionally self-inflicted.
- Injuries that occurred outside of working hours.
- Injuries that are related to a preexisting condition.
- Injuries that were sustained while the injured employee was committing a crime.
- Injuries that happened while the employee was under the influence of drugs or alcohol.
- Injuries that were incurred by an individual who was not an official employee of your company at the time of the accident.
If an employee believes that their workers’ compensation claim was unjustly denied, they can appeal the decision by petitioning the Massachusetts Department of Industrial Accidents.
Where Can Milford Business Owners Purchase Workers’ Compensation Insurance?
Several commercial insurance providers are authorized to sell workers’ compensation insurance in the Commonwealth of Massachusetts. Most businesses in Milford purchase their coverage through one of these private insurers.
Companies that employ workers in high-risk jobs or have poor safety records may find it impossible to find an insurance company willing to cover them. In this case, they can purchase an assigned-risk policy through the Workers’ Compensation Rating and Inspection Bureau of Massachusetts (WCRIBMA).
Alternatively, your company may opt to self-insure. If you would like to do this, you will need to apply for approval and demonstrate that your business has the financial means to cover the treatment of worker injuries and disability pay.
How to Find the Best Workers’ Compensation Insurance in Milford, MA
Independent agents in Milford can help you obtain and review customized quotes from a variety of workers’ compensation insurance providers that specialize in covering businesses like yours. That way, you can be sure you are getting a suitable policy at a competitive price.
Shopping for insurance is easy when you work with an independent agent. Arrange an obligation-free consultation with an insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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