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What is Workers Compensation Insurance?
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.
Who Does Workers Comp Cover?
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.
What Businesses in Massachusetts Need Workers Compensation?
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.
When Do Businesses Need to Get Workers Compensation Coverage?
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.
Are Workers Compensation Policies Expensive?
How much businesses end up paying for workers compensation coverage depends on many factors. Insurers often base premiums partly on:
● What industry a business operates in
● How many employees a business has
● What those employees’ salaries are
● Whether a business has previously filed claims
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.
What Injuries and Illnesses Does Workers Compensation Cover?
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:
● Repetitive motion injuries
● Burns, cuts and scrapes
● Fractures and sprains
● Concussions
● Long- and short-term illnesses
● Deaths
Do Business Owners Policies Include Workers Compensation?
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.
How Can Massachusetts Businesses Get Workers Compensation Insurance?
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.
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