Shrewsbury Massachusetts Workers Compensation

Employees sometimes get hurt on the job. In 2017 alone, Massachusetts businesses reported approximately 73,300 work-related injuries and occupational illnesses. Workers’ compensation insurance is designed to cover the associated costs.

If you are among the many employers in Shrewsbury, an independent insurance agent can help you find the best and most affordable workers’ compensation policy to cover your employees. Find an insurance agent near you to start shopping for coverage.

What Is Workers’ Compensation Insurance?

Workers’ compensation insurance is a commercial insurance policy that pays for the various expenses related to workplace injuries and occupational illnesses. This includes coverage for medical treatments and disability pay.

Not only does this insurance protect your employees from large financial losses related to workplace injuries, but it can also shield your business from potential liability lawsuits.

Are Businesses in Shrewsbury Required to Have Workers’ Compensation Insurance?

With very few exceptions, if you have a least one employee in Massachusetts, you are required to cover them with workers’ compensation insurance. Exceptions are made for the following.

• Domestic laborers who work for you fewer than 16 hours a week
• Sole proprietors, partners, and LLC members so long as they are not also considered employees

A local insurance agent can help you be certain that your business is compliant with all state insurance mandates.

What Is the Penalty for Not Carrying Workers’ Compensation Insurance in Shrewsbury?

In Massachusetts, failure to carry workers’ compensation when it is required can result in your business being issued a Stop Work Order (SWO) and fined $100 a day from the time the SWO is issued until your business acquires workers' compensation coverage and the fine is paid in full.

Additionally, if you are the owner of a business that has been issued an SWO for not having coverage, you can face criminal charges, fines, and up to one year in prison. In other words, going without this insurance when it is required is not worth the risk.

How Much Does Workers’ Compensation Insurance Cost in Shrewsbury?

The good news for employers in Shrewsbury is that Massachusetts is one of the least expensive states for workers’ compensation insurance. Rates can vary significantly from one business to the next because they are calculated based on the following criteria.

• 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

Comparing customized quotes from a few different insurance providers lets you be sure that you are getting the coverage you need at a competitive price. Independent insurance agents make comparison shopping easy.

What Are Some Base Rate Examples in Shrewsbury?

In Massachusetts, every occupation is assigned a classification code, and base coverage rates for each of these class codes are set and regulated by the Commonwealth’s Workers’ Compensation Rating and Inspection Bureau (WCRIBMA).

Insurance companies must use these designated 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 customized quotes before selecting a policy.

Let’s take a look at the base rates per every $50,000 in employee payroll for a few very different jobs you can find in Shrewsbury, MA.

• Roofing contractors: $7,120 a year
• Masonry construction workers: $4,465 a year
• Auto mechanics: $590 a year
• Clerical/office workers: $15 a year

While rates may seem rather high for some of the more hazardous occupations, consider this: in 2018 alone, workers’ compensation companies in Massachusetts paid out more than $1.25 billion in claims to injured workers.

Talk to a local independent agent to get quotes for covering your Shrewsbury business.

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What Does Shrewsbury Workers’ Compensation Insurance Cover?

If one of your workers is injured on the job or is diagnosed with an occupational illness, you can expect your workers’ compensation insurance policy to cover the following situations.

• Medical treatments: All of your employee’s necessary medical care related to the injury will be covered in full. This includes ambulance rides, hospital stays, medical appointments, follow-up exams, prescription medications, physical therapy, and other associated costs.
• Travel reimbursement: Injured workers can be reimbursed for miles driven to and from medical appointments and the pharmacy.
• Temporary total disability: If an employee requires more than six days to recuperate from a work-related injury or illness, they can collect a weekly benefit of 60% of their average weekly pay until they are able to 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, they can receive a benefit of 75% of the difference in pay if they are earning less in their alternate job. This benefit can continue for up to 260 weeks.
• Permanent disability: If a worker is left permanently disabled, they can receive an ongoing weekly benefit of two-thirds their average wage for as long as they are considered disabled. This benefit includes annual cost-of-living increases.
• Death benefits: If a work-related injury or illness is fatal, workers’ compensation can cover burial costs and can provide the employee’s spouse and dependents with compensation of two-thirds the employee’s average weekly pay for as long as they qualify for coverage.

In Massachusetts, 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 Shrewsbury Workers’ Compensation Insurance Not Cover?

Workers’ compensation insurance has a few exclusions for what it will cover. For instance, your insurance provider will likely deny coverage for claims involving injuries that occurred in the following situations.

• Injuries that took place while the employee was under the influence of drugs or alcohol.
• Injuries that happened outside of working hours.
• Injuries that are related to preexisting conditions.
• Injuries that were sustained by workers who were not official employees of the insured at the time of the injury.
• Injuries that are believed to have been intentionally self-inflicted.
• Injuries that occurred while the injured employee was committing a crime.

If an employee believes that a claim was unjustly denied, they can appeal the decision by petitioning the Massachusetts Department of Industrial Accidents.

Where Can Shrewsbury Business Owners Buy Workers’ Compensation Coverage?

Workers’ compensation insurance can be purchased from any commercial provider that is authorized to sell this insurance in Massachusetts. Most business owners in Shrewsbury get their coverage this way.

High-risk businesses that are unable to find a commercial insurer willing to provide coverage 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 demonstrate that your business has the financial means to cover workplace injuries and must be approved by the state.

How to Find the Best Workers’ Compensation Insurance in Shrewsbury, MA

Let an independent insurance agent help you find the best workers’ compensation policy to cover your Shrewsbury business. These agents can obtain customized quotes from a few competing insurance providers that specialize in covering businesses like yours. That way, you can be sure you are getting the coverage you need at a great price.

Arrange an obligation-free consultation with an insurance agent near you to discover how easy it can be to find the best workers’ compensation policy in the Bay State.