Accidents sometimes happen, even to the most careful people. This is true on the roadways, at home, and in the workplace. If you're an employer in New Bedford, MA and one of your workers is injured or becomes ill on the job, your business is responsible for covering any necessary medical treatment and associated financial losses. Workers’ compensation insurance provides this coverage.
Independent Insurance Agents with offices in or near New Bedford can provide guidance when you're looking for a great workers’ compensation insurance policy. They can shop around to help you find the best and most affordable policy to cover your specific business. Contact an insurance agent near you to start comparing quotes.
Is Workers’ Compensation Insurance Required in New Bedford, MA?
Most, but not all, employers in New Bedford, MA are required to have workers’ compensation insurance. The state of Massachusetts mandates that all businesses with at least one full- or part-time employee must carry this coverage with a few exceptions. You don't need to cover:
- Domestic servants who work fewer than 16 hours a week
- Salespeople who work on commission, including real-estate agents
- Taxi drivers who lease their vehicles on a fee basis not related to fares
- Workers who engage in interstate or international commerce
Additionally, you're not required to cover sole proprietors, partners, or LLC members but may opt to do so if you wish. To learn more, consult your local independent insurance agent.
How Much Does Workers' Comp Insurance Cost in New Bedford, MA?
Rates for workers’ compensation insurance are calculated according to the kinds of jobs your employees do and your company’s overall annual payroll. Every job type is assigned a classification code, and the MA Workers’ Compensation Rating and Inspection Bureau assigns rates for each of these job classifications.
The greater the chance that a worker may suffer a significant injury on the job, the higher the cost for coverage will be. Commercial insurers are required to use these assigned base rates when calculating costs for coverage. However, these insurers can offer discounts and incentives, so it's in your best interest to compare policies and quotes from a few different providers before you make a selection. The following are average rates paid per every $100,000 in employee payroll for the three top industries in New Bedford, MA:
- Construction: $7,350 a year
- Manufacturing, $3,090 a year
- Retail Trade: $800 a year
Workers at construction firms and manufacturing plants are far more likely to be injured on the job than employees at retail stores, so the costs to cover these workers are higher. However, these are broad-based averages. Within the manufacturing industry, rates can vary significantly according to what products are being produced. To find out what your specific cost for coverage will be, contact a local independent insurance agent and start comparing quotes.
What Does New Bedford Workers’ Comp Insurance Cover?
In Massachusetts, workers’ compensation insurance (sometimes referred to as “workman’s comp”) is designed to cover the costs associated with on-the-job injuries and occupational illnesses. This saves your employees from facing large financial losses as a result of their work injuries, and it also significantly reduces your company’s risk of being sued in a liability lawsuit. You can expect your New Bedford workers’ compensation insurance policy to pay for the following:
- Medical treatment: Workers’ compensation will cover all costs associated with necessary medical treatment and follow-up care related to occupational illnesses and injuries. This includes coverage for associated prescription medications. As the employer, you may choose which doctor your employee sees for an initial assessment, but additional care can be provided by the employee’s doctor of choice.
- Mileage reimbursement: Workers’ comp can reimburse injured employees for mileage and tolls to and from their necessary medical appointments. The rate is set by the Massachusetts Department of Industrial Accidents and is currently set at 45 cents per mile.
- Short-term disability benefits: Employees who need more than seven consecutive days to recuperate from a work-related injury can collect a weekly benefit of 60% of their average weekly pay over the past year. This benefit continues until they are able to return to work.
- Permanent disability benefits: If a work-related injury is so severe that the injured employee can't return to work, workers’ comp can provide weekly compensation in an amount that is 2/3 of the employee’s average weekly pay. This benefit can have periodic cost-of-living increases.
- Scarring and disfigurement: If an accident causes permanent disfigurement, such as scarring to the face, injured employees may be given a one-time payment of up to $15,000 depending on the severity of the injury.
- Survivor benefits: If an employee dies due to a work-related injury or illness, workers’ comp will help to pay for burial expenses and will provide the worker’s spouse with weekly compensation of 50% of the worker’s average earnings. This benefit will cease if the spouse remarries, but dependent children can continue to collect $60 a week.
You can get more information about each of these benefits by talking with a local independent insurance agent.
Find the Best Workers’ Compensation Insurance in New Bedford
An independent insurance agent can help you find an industry-appropriate workers’ compensation policy to cover your New Bedford business. Your local agent can provide you with customized quotes from competing insurance companies that specialize in covering businesses like yours. That way, you can be sure you're getting suitable coverage at a great price.
Discover how easy it can be to find the right workers’ compensation policy for your business. Contact an insurance agent in or near New Bedford, MA to start comparing quotes today.
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