Wilmington Massachusetts Workers' Compensation

It is an unfortunate fact that employees sometimes get injured on the job. In 2017 alone, employers in Massachusetts reported more than 73,000 worker injuries. This is a rate of 2.7 injuries per every 100 full-time workers.

Workers’ compensation insurance is designed to cover the associated costs of workplace injuries and occupational illnesses so that these mishaps do not result in unmanageable expenses for your business or your employees.

If you are among the many employers in Wilmington, an independent insurance agent can help you find the best and most affordable workers’ compensation policy to cover your business. Contact an insurance agent near you to learn more.

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

Virtually all employers in Wilmington are required by Massachusetts law to carry worker’s compensation insurance. The state mandates that you must carry this insurance if you have at least one employee, even if that person only works part-time.

There are only a few exceptions. For instance, you are not required to carry coverage for these workers.

• Domestic help who works less than 16 hours a week.
• Sole proprietors, partners, and LLC members as long as they are not also considered employees.

Out-of-state employers are also required to carry coverage for all employees working in the Commonwealth.

Failure to carry this coverage opens your business up to potential lawsuits. It can also result in your company being issued a Stop-Work Order (SWO) and a fine of $100 a day, including weekends and holidays, from the time the SWO is issued until insurance coverage is acquired and the fine is paid in full.

Additionally, business owners who are issued SWOs can face criminal charges, fines, and up to one year in prison. If you are uncertain whether your business is required to carry workers’ compensation insurance, you can consult a local independent insurance agent.

How Much Does Workers’ Compensation Insurance Cost in Wilmington?

Employers in Wilmington will 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 these factors.

• The number of employees you have
• The types of jobs your employees do and the likelihood they will be hurt while doing them
• How much your employees are paid
• Your company’s claims history and safety record

Every occupation is assigned a classification code and coverage rates per every $100 in payroll for each of these class codes. They 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’s why it is to your benefit to compare rates before making a purchase.

Base Rate Examples

Let’s take a look at the base rates per every $50,000 in employee payroll for three jobs commonly found in Wilmington, MA.

• Drywall contractors: $2,800 a year
• Plumbers and plumbing contractors: $1,410 a year
• Retail store workers: $220 a year

As you can see, rates vary according to the nature of the job being covered. Clearly, someone installing drywall is more likely to suffer a significant injury while working than someone who is ringing up purchases in a retail store.

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.

What Are Experience Modifiers?

Experience modifiers are ratings that are assigned to certain employers. In Massachusetts, you will qualify for an experience modification factor if your company has spent more than $11,000 in workers’ compensation premiums over the last two years.

If your business qualifies for an experience modifier, it must be used when calculating your workers’ compensation insurance rates.

The experience modifier is a number ranging from 0 to 2. If your company’s safety record is comparable to the average business in your industry sector, your factor will be 1. If your safety record is better, it will be less than 1, and if worse, it will be greater than 1.

So, for example, if your company has a very solid safety rating and your modification factor is 0.75, you will be assessed 75% of the base rate for premiums for your workers. Thus, the base rate for the drywall contractor mentioned above would drop from $2,800 to $2,100 a year.

On the other hand, if your company’s safety record isn’t very good and you’ve experienced a few serious employee injuries in the past couple of years, your rating may be 1.25, which would mean that your base rates would increase 25%. Therefore, the drywall contractor's cost for coverage would go from $2,800 to $3,500 a year. 

That is why maintaining a safe workplace and regularly educating workers on job safety is so important. You can talk to a local independent insurance agent to learn more about how experience modifiers can affect your workers’ compensation insurance rates.

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What Does Wilmington 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: This insurance covers all necessary medical care related to occupational illnesses and injuries, including ambulance rides, hospital stays, medical appointments, follow-up care, prescription medications, physical therapy, and other treatments. Employees will need to begin their treatment with an authorized provider but may choose their own doctor for follow-up care.
• Travel reimbursement: Workers’ compensation can reimburse employees for miles driven to and from medical appointments and the pharmacy. Reimbursement rates are set by the state. In Massachusetts, the rate is currently 45 cents per mile.
• Temporary total disability: If an employee needs to take more than six days to recuperate from a work-related injury, they will be able to collect a weekly benefit of 60% of their weekly pay until they are able to return to work. If they must remain out of work for at least 21 days, the first six days will be covered, otherwise, they are not. Benefits can continue 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 a weekly benefit of two-thirds of their average wage for as long as they are deemed disabled. These benefits come with an annual cost-of-living increase.
• Survivor benefits: If a work-related injury or illness leads to a fatality, workers’ compensation can ease the financial burden on surviving family member by covering burial expenses and by providing the employee’s spouse and dependents with compensation of two-thirds of the employee’s average weekly wage until the spouse is remarried, at which point all eligible children will receive a benefit of $60 a week.

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 is set at $1,487.78.

You can learn more about workers’ compensation insurance by speaking with an independent insurance agent in Wilmington.

What Does Wilmington Workers’ Compensation Insurance Not Cover?

There are instances where workers’ compensation claims may be denied by your insurance carrier. This may happen if a claim is filed for a non-covered event such as these injuries.

• Injuries that happened while the employee was under the influence of drugs or alcohol
• Injuries that happened outside of working hours
• Injuries or illnesses that are related to pre-existing conditions
• Injuries incurred by workers who were not official employees of the insured at the time of the injury
• Injuries that were intentionally self-inflicted
• Injuries that happened while the worker was committing a crime

If you believe that your claim was unjustly denied, you can appeal the decision to the Massachusetts Department of Industrial Accidents.

Where Can Wilmington Business Owners Buy Workers’ Compensation Coverage?

Workers’ compensation insurance can be purchased through any commercial provider that is authorized to sell these policies in Massachusetts.

Employers who are unable to obtain coverage through a commercial provider because of a bad safety record or high-risk employment still have options. They can purchase an assigned risk policy through the Workers’ Compensation Rating and Inspection Bureau of Massachusetts. These policies are a lot more expensive, but coverage is guaranteed.

Alternatively, your company may opt to self-insure, though you will need to apply for approval and demonstrate that your business has the financial means to do cover the costs associated with workplace injuries and occupational illnesses.

Most businesses in Wilmington purchase coverage through a commercial provider.

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

A local independent insurance agent can help you find the right workers’ compensation policy to cover your Wilmington business. Because they are free to work with several different insurance companies, these agents can provide you with a variety of customized quotes from providers that specialize in covering businesses like yours. That way, you can be sure you are getting the coverage you need at a competitive price.

Discover how easy it can be to find an ideal workers’ compensation policy for your business. Contact an insurance agent near you to get started.