Watertown Massachusetts Workers Compensation

In Massachusetts, workers suffer occupational injuries and illnesses at a rate of about 2.7 out of every 100 full time workers every year. That is why workers’ compensation insurance is so important. In 2018 alone, insurance companies paid out $1.26 billion in claims to injured workers in the Bay State.

If you are looking for the best and most affordable workers’ compensation policy to cover your Watertown business, an independent insurance agent can help. Find an insurance agent near you to get started.

What Is Workers’ Compensation Insurance?

Workers’ compensation insurance is designed to cover the various costs associated with workplace injuries and occupational illnesses. It protects injured employees from facing large financial losses due to medical costs and lost wages while also shielding employers from potential liability lawsuits.

Is Workers’ Compensation Insurance Required for Businesses in Watertown?

In Massachusetts, if you have at least one full- or part-time employee, you are required to carry workers’ compensation insurance.

Exceptions are made for domestic servants who work fewer than 16 hours a week, and for sole proprietors, partners, and LLC members who cannot also be considered employees.

Failure to carry this coverage when it is required can result in fines and jail time for company owners. Additionally, noncompliant businesses can be issued a Stop Work Order (SWO) and fined $100 a day until workers’ compensation coverage is purchased and all fines are paid in full.

How Much Does Workers’ Compensation Insurance Cost in Watertown?

Workers’ compensation rates in Massachusetts are among the lowest in the country. This is great news for Watertown business owners who are looking for an affordable policy.

Your company’s costs will be calculated based primarily on how many employees you have, how much they are paid, and the types of jobs they do.

The more likely a worker is to be seriously injured on the job, the more it will cost to cover them. For instance, a tree trimmer and remover will cost a lot more to insure than a marketing consultant at Harvard Business Publishing.

Workers’ Compensation Base Rate Examples in Watertown

Unlike most states, Massachusetts regulates its own workers' compensation rates outside of the NCCI. Every occupation is assigned a classification code and base rates for each of these class codes, and they are managed 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 can offer discounts and credits at their discretion in order to be competitive. That is why shopping around for the best rate has the potential to save your business money.

Let’s take a look at the average rates paid per every $50,000 in employee payroll for three very different jobs that can be found in Watertown, MA.

• Masonry construction workers: $4,465 a year
• Auto mechanics: $590 a year
• Retail store workers: $220 a year

To find out how much it will cost to cover the people who work for your Watertown business, consult a local independent insurance agent who can present you with a few customized quotes.

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What Does Watertown Workers’ Compensation Insurance Cover?

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

• Medical treatments: All necessary medical costs will be covered in full, including associated ambulance rides, hospital stays, prescription medications, physical therapy, and equipment like slings and crutches.
• Travel reimbursement: Injured workers can be reimbursement for miles driven to medical appointments and the pharmacy.
• Temporary total disability: Injured employees who need more than six days to recuperate can collect a weekly benefit of 60% of their average pay until they are able to return to work, for up to 156 weeks.
• Temporary partial disability: Recuperating employees who are able to return to work but in a limited capacity can be compensated 75% of the difference in pay if they are earning less than they were in their job prior to the injury, for up to 260 weeks.
• Permanent disability: Permanently disabled employees can collect a weekly benefit of two-third their average wage indefinitely.  This benefit provides annual cost-of-living increases.
• Death benefits: If a work-related injury or illness is fatal, workers’ compensation can ease the financial burden on family members by covering burial expenses and providing the employee’s spouse and dependents with ongoing compensation of two-thirds their average weekly pay for as long as they qualify.

Workers’ compensation weekly disability benefits may not exceed Massachusetts’ average weekly pay, which is reviewed and updated annually. On October 1, 2020, the weekly maximum payment was capped at $1,487.78.

What Is Not Covered by Workers’ Compensation in Watertown?

Insurance companies may deny coverage for certain workers’ compensation claims. For instance, the following situations are not covered by most insurers.

• Injuries that were sustained outside of working hours
• Injuries and occupational illnesses that are related to preexisting conditions
• Intentionally self-inflicted injuries
• Injuries that occurred while the employee was committing a crime
• Injuries that happened while the employee was under the influence of drugs or alcohol

Denied workers’ compensation claims can be appealed petitioning the Massachusetts Department of Industrial Accidents.

Learn more about what your workers’ compensation insurance policy will and will not cover by talking with a local independent insurance agent.

Where Can Watertown Business Owners Purchase Workers’ Compensation Insurance?

Most businesses in Watertown purchase their coverage through one of the many commercial providers that are authorized to sell workers’ compensation insurance policies in Massachusetts.

Companies that have poor safety records or that employ workers in particularly high-risk jobs may be unable to find an insurance company willing to cover them. In this case, they can purchase an assigned risk plan through the Workers’ Compensation Rating and Inspection Bureau of Massachusetts.

Alternatively, businesses have the option to self-insure, but must first apply for approval and demonstrate that they have the financial means to cover the costs associated with worker injuries.

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

If you are looking for a suitable, yet affordable, workers’ compensation policy, look no further than a local independent agent. These agents can help you obtain and review customized quotes from insurance providers that specialize in covering businesses like yours. That way, you can be certain you are getting the coverage you need at a reasonable price.

Contact an insurance agent near you to set up an obligation-free consultation.  You will soon discover how easy it can be to find the best workers’ compensation policy for your Watertown business.