When employees suffer work-related injuries and illnesses, employers are often required to provide compensation for resulting medical bills and lost wages. Workers compensation insurance policies help Massachusetts employers pay covered expenses arising from work-related injuries and illnesses.
Workers compensation insurance is a unique form of insurance for businesses. Although payments from policies frequently go to employees, the payments are ultimately a form of liability protection for businesses. If a policy didn't pay the covered expenses, the covered business would likely have to.
Workers comp generally covered employees, who are usually workers that receive a W-2 form come tax time. In most cases, employees are covered regardless of whether they’re full- or part-time, permanent or seasonal.
Sometimes, business owners who are involved in the daily operations of their business can also get coverage from a workers comp policy. Whether business owners are covered depends on the exact nature of their role within the business, what coverage options are selected, and a policy’s terms and conditions. An insurance agent who specializes in workers comp can help business owners determine whether a particular policy will cover them.
In rare situations, contractors who receive a 1099 at year’s end might be treated as employees and covered by a business’ workers comp policy. A knowledgeable insurance agent can help businesses that have questions about these situations sort through their policy’s specific protections.
Most businesses in Massachusetts that have employees are legally required to carry workers compensation. There may be some exceptions, but these affect a minority of businesses in the state.
Businesses that don’t have employees but want to explore coverage options for one or more business owners should talk with an agent about whether this type of insurance is right for them.
Businesses that need workers compensation normally should have coverage in place by the time an employee starts working. It may seem unlikely, but injuries and illnesses can happen on the first day of work. Additionally, any legal requirements regarding workers compensation usually go into effect immediately when an initial employee is officially hired.
How much businesses end up paying for workers compensation coverage depends on many factors. Insurers often base premiums partly on:
Even once all the applicable factors are taken into account, premiums frequently remain affordable. They’re almost certainly less expensive than facing the potential legal penalties and liability lawsuits that can result when no policy is in place.
In general, workers compensation policies cover a wide array of potential work-related injuries and illnesses. Some of the incidents that a policy might cover are:
Most business owners policies and commercial package policies don’t include workers compensation coverage. Rather than procuring this through a package policy with other coverages, businesses typically get workers compensation as a stand-alone protection.
While package policies don’t normally include workers compensation, insurance agents who help businesses with BOPs and CPPs frequently also assist with workers compensation.
For help getting workers compensation insurance for your business, contact the insurance agents at John P. Russell Insurance. Our agents will make sure you find a policy that meets all of Massachusetts’ state requirements, provides robust protection and is affordable.
"John, you and your office have done a great job for us and I really appreciate it. You guys are very professional and considerate. That goes a long way with me."
Karen, Medfield, MA
"Your staff did an exceptional job helping me with a recent claim. They took care of everything in a professional and prompt manner. They were very nice, extremely helpful, and took the burden off of me. Their help was greatly appreciated."
Lori, Quincy, MA
"Everyone at the agency were very courteous and put me at ease during the frustrations and inconvenience of filing a claim related to my accident."
Andrea, Stoughton, MA
"I want you to know how much I appreciate your personal attention in handling my policies. I was amazed by the efficiency and professionalism of your staff."
Eric, Taunton, MA